Indicating the wrong track? A critical appraisal of water productivity as an indicator to inform water efficiency policies

Water productivity is broadly used as an indicator to measure the success of policies aiming at efficient water management. Focusing on agricultural sector, this paper provides first critical analysis appropriateness for type assessment. We apply Logarithmic Mean Divisia Index (LMDI) decomposition together with descriptive statistical test our main hypothesis that natural resources do not generate value added, and therefore changes in are related well-known drivers economic growth rather than improvements efficiency. use three different models levels detail identify changes. Results show indeed there a weak relationship between In contrast, driven by labor capital intensity. Thus, we discourage policy makers from using monitor progress management or decoupling consumption. Rather, indicators independent development such biomass per volume should be absolute volumes appropriated society monitored.