Wheat self-sufficiency effects on the flow of virtual water trade in Iran

Document Type : Research Article

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Abstract

The undeniable fact in Iran is water restrictions. For this purpose, virtual water trade, could be a solution to reduce the impact of water restrictions. Also, wheat is a basic commodity that has a crucial role in food security. Therefore, the effects of wheat self-sufficiency policies on virtual water trade flows have been investigated by using the spatial equilibrium model. As a result, according to the region and the use of panel data method, the price elasticity of supply and demand function was estimated and by using price elasticity, the wheat market modeling has been performed. The results showed that the wheat self-sufficiency policy, increase in domestic production (20 %), falling demand (-8.3%) and rising prices in this market. Hence, reduces the welfare of society. On the other hand, by applying wheat self-sufficiency policy, the virtual water trade is affected, and more pressure is imposed on water resources, so that the supply of wheat in the country has increased, and more water is withdrawn at a rate of 2.30 liters. 

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References

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