Water Demand and Economic Efficiency: An Input-Output Approach for Thailand's Northern and Northeastern River Basins Using 2010 Base-Year Data
Keywords:
Water Allocation, Input-Output Table, Water Footprint, Water Use EfficiencyAbstract
This study aims (1) to assess water use efficiency across economic sectors in the river basins of Northern and Northeastern Thailand, and (2) to estimate the economic impacts of alternative water allocation schemes under conditions of water scarcity. The analysis applies a Hybrid Input–Output (I–O) Table constructed from Thailand's 2010 national I–O table, with integrated water accounts, to nine river basins in the Northern and Northeastern regions, namely the Salween, Upper Mekong, Ping, Wang, Yom, Nan, Lower Mekong (Northeast), Chi, and Mun basins. The results indicate that (1) the agricultural and agro-industrial sectors, which account for the largest share of total water use across all nine basins, exhibit Water Intensity values exceeding one particularly rice, rubber, and oil palm reflecting economically inefficient water use relative to their economic contribution. In contrast, the manufacturing and service sectors demonstrate substantially higher economic returns per unit of water consumed.
(2) Scenario simulations of four water allocation schemes in the Nan and Chi river basins reveal that water allocation based on water use efficiency results in the smallest economic losses, whereas equal allocation and food-security-oriented allocation lead to substantial reductions in gross output. These findings suggest that policymakers should incorporate economic considerations into water allocation decisions in order to enhance overall efficiency and minimize economic losses under conditions of water scarcity.
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