The effect of decoupling on water resources: Insights from European international trade

The concern on the effects and potential consequences of displacements water resources through international trade has increased in last decades. Today, scarcity is considered one main problems world. Despite large advances its quantification understanding, further research anthropogenic determinants exchanges embodied necessary. Our study aims to shed light trajectories explaining factors European Union. In particular, we analyse how 2003 Common Agricultural Policy (CAP) reform, which decoupled direct subsidies from production, affected consumption agri-food exports. First, our methodology relies bottom-up approach estimate long-term exports virtual 1995 2013. Second, assess effect reform using panel data analysis a gravity framework. results show that boosted extra We also observe heterogeneity sample, pointing Mediterranean areas as most by policy reorientation. Spain, scarce countries Union, essential explain this link.