Environmental Footprints and Scenario Analysis for Assessing the Impacts of the Agri-Food Industry on a Regional Economy: A Case Study in Spain

• Published in: Journal of industrial ecology 2015-08, Vol.19 (4), p.618-627
• Main Authors: Cazcarro, Ignacio, Duarte, Rosa, Sánchez-Chóliz, Julio, Sarasa, Cristina, Serrano, Ana
• Format: Article
• Language: English
• Subjects: agri-food industry; Agricultural economics; Agricultural pollution; Agriculture; Agrofood industry; Analysis; Case studies; computable general equilibrium (CGE) model; Consumer behaviour; Consumers; Consumption; Economic theory; Environment; Environmental degradation; environmental footprint; Environmental impact; Export-import trade; Food; Food industry; Food processing industry; General economic equilibrium; Industry; input-output analysis (IOA); Natural resources; Production; regional economy; Spain; Studies; Sustainable development; Water; water footprint
• ISSN: 1088-1980; 1530-9290
• DOI: 10.1111/jiec.12209

Summary The study of the environmental footprints of various sectors and industries is increasingly demanded by institutions and by society. In this context, the regional perspective is becoming particularly important, and even more so in countries such as Spain, where the autonomous communities have the primary responsibility for implementing measures to combat environmental degradation and promote sustainable development, in coordination with national strategies. Taking as a case study a Spanish region, Aragon, and significant economic sectors, including agriculture and the food industry, the aim of this work is twofold. First, we calculate the associated environmental footprints (of emissions and water) from the dual perspectives of production (local impacts) and consumption (final destination of the goods produced by the agri‐food industry). Second, through a scenarios analysis, based on a general equilibrium model designed and calibrated specifically for the region, we evaluate the environmental implications of changes in the agri‐food industry (changes in the export and import pattern, as well as in consumer behavior). This model provides a flexible approximation to the environmental impacts, controlling for a wider range of behavioral and economic interactions. Our results indicate that the agri‐food industry has a significant impact on the environment, especially on water resources, which must be responsibly managed in order to maintain the differential advantage that a regional economy can have, compared to other territories.