Virtual water

The virtual water trade is the hidden flow of water in food or other commodities that are traded from one place to another.^[1] Other terms for it are embedded or embodied water. The virtual water trade is the idea that virtual water is exchanged along with goods and services. This idea provides a new, amplified perspective on water problems. It balances different perspectives, basic conditions, and interests. This concept makes it possible to distinguish between global, regional, and local levels and their linkages. However, the use of virtual water estimates may offer no guidance for policymakers seeking to ensure they are meeting environmental objectives.

For example, cereal grains have been major carriers of virtual water in countries where water resources are scarce. So cereal imports can compensate for local water deficits.^[2] However, low-income countries may not be able to afford such imports in the future. This could lead to food insecurity and starvation.