In this article, the virtual water exchange between Mediterranean countries is considered, reference being to the implicit water content of traded goods. Virtual water flows associated with trade in agricultural goods are estimated. Subsequently, a general equilibrium economic model is used to simulate the effects of the future reduced availability of water resources due to climate change. Assessment is made of how and to what extent autonomous market adaptation mechanisms may provide partial response to problems arising from the reduced availability of water resources.
Keywords: Computable general equilibrium models, Water, Virtual water, Water scarcity, Climate change
Jel Code: C680, D580, F180, Q170, Q240, Q540