Virtual water and input-output model framework: an alternative way to assess trade and water consumption in FYR Macedonia

This study aims to analyse the water consumption of the Macedonian economic sectors and their trade strategies by means of virtual water in an input-output (IO) framework. By analysing the trade balance we determine that as consequence of high virtual water content and significant exports of some sectors, Macedonia is a net exporter of virtual water and lost around 124 million of m3 water at 2005 level or 18% of the total water consumption. Considering a policy option of export nullification for the most water-intensive products with significant net positive exports, yields a substantial water savings by 42.53% of the total water consumption.