A Multiregional Input-Output Analysis of Water Withdrawals in the Southeastern United States

Abstract

The amount of water withdrawn to support economic activity in the southeastern United States is estimated using a multiregional Environmental Input-Output/Life Cycle Analysis model. Water multipliers are measured as gallons of water withdrawn to meet a one-dollar increase in a commodity's final demand. The analysis finds that direct and indirect water withdrawal requirements embedded in the production of goods and services is heterogeneous across the study region. The utilities and crop production sectors exhibit the largest water multipliers. For an increase in final demand for crop production, direct regional effects contribute more to water multipliers compared to contributions from inter-regional and intersectoral sources. Alternatively, regional and inter-sectoral multipliers contribute more to the composition of the utilities sectors' water multipliers. The resulting water footprint could inform the design of water management policies for local, state, and regional institutions, including markets for water.