Virtual water: a useful concept for informing land use in New Zealand

Abstract

This dissertation argues that the concept of virtual water should be used to inform future land use decisions within New Zealand. Virtual water is a contemporary concept, defined as the water needed to produce agricultural commodities. Separated by type – blue, green and grey – virtual water addresses the environmental problem of water scarcity and reveals a negative externality of global food trade. Virtual water flows, between and among countries, are intrinsically linked to a country’s land use. Using a mixed methods approach, a case study of New Zealand is conducted exploring virtual water interactions and land use along with the development of a framework to assess the utility of virtual water as a policy concept. The case study finds that New Zealand has a net virtual water deficit and identifies that water resources are being over-exploited for economic gain. The policy evaluation framework indicates that virtual water can be a useful policy concept although further research quantifying virtual water flows is needed. This dissertation concludes that New Zealand is well placed to integrate the concept of virtual water into policy which would enable the government to make informed decisions regarding future land use. Through implementing a proactive policy, virtual water flows would be managed more effectively, altering industry behaviour and having a direct impact on land use in New Zealand.