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Virtual water trade, which underlines the importance of inter-regional commodity transactions for enhancing water management, has often been recommended as an alternative to technological advancements in addressing water scarcity and increasing water savings in dry regions. Sectoral adjustment policies that focus on enhancing the productivity of specific sectors therefore should prioritize sectors with high growth impact potential but low virtual water demand. However, the diverse understanding of the concept and differing assessment techniques employed by various research communities complicate the debates surrounding the policy relevance of the virtual water trade. This study proposes a novel and integrated approach to evaluating virtual water content and flows endogenously, leveraging the advantages of Input-Output and Computable General Equilibrium (CGE) modeling methods. The quantification of the method is exemplified in the case of Uzbekistan (Central Asia), where water is a limited yet essential resource for sustainable economy and environmental systems. Specifically, this study examines the impacts of changes in economy-wide and sector-specific Total Factor Productivity (TFP) and water productivity on water uses, virtual water flows, and economic outcomes. The findings reveal that TFP improvements in livestock and fodder crop production and water productivity enhancements in gardening are recommendable options to constrain the net virtual water trade and enhance economic growth in Uzbekistan. The study also shows a high sensitivity of virtual water flows to technological changes, highlighting the importance of considering options for improving productivity when analyzing the potential of virtual water trade. [Display omitted] • SAM/Input-Output based method of virtual water flow assessment was integrated into a CGE modeling framework. • Water use intensity and virtual water flows were endogenously incorporated into the CGE model. • Virtual water trade is an outcome of technological change policies but not a policy itself. • Improved productivity in livestock and fodder crops production enhance water and income security. • Water productivity improvements in fruits and vegetables production reduce net virtual water exports. [ABSTRACT FROM AUTHOR]

The disclosure of global value chain (GVC) division and cooperation is essential for the rational allocation of water resources and the achievement of trade equality, particularly as the global division of labor becomes more pronounced. Currently, there are limited studies on the global value chain at the sub-national level, with most focusing on virtual water trade (VWT) characteristics between two trading partners, without integrating VWT into the global value chain and overlooking significant cooperation among participants. Here, we characterize the international division of GVC and VWT patterns covering 194 regions (31 regions in China and 163 countries) around the world in 2020, and then examine the inequality between virtual water (VW) and value-added (VA) transfer from both environmental and economic perspectives, focusing on the sub-national scale of China. Our results show that in terms of water consumption responsibilities, considerable heterogeneity can be seen in different regions across China. Furthermore, relying solely on the export of primary products for economic development will lead to inequality in trade between countries. In this study, we trace the characteristics of VWT, taking into account the participation and contribution of regions in numerous GVC linkages. In addition, to make our policy implications more targeted, we refine the study resolution to the sub-national scale. Our results suggest that countries should prioritize consumer responsibility in GVC, reduce the drawbacks of trade barriers, and dispassionately exploit the economic and environmental advantages of water resources. [ABSTRACT FROM AUTHOR]

As water scarcity intensifies worldwide, the equitable allocation of water resources has emerged as a critical challenge. This research investigates the intricate issue of allocating responsibility for virtual water, a concept that quantifies the water embedded in traded commodities. In pursuit of an effective allocation mechanism, we refine an innovative accounting scheme grounded in economic welfare gains arising from externalities. The results show that water-stressed areas in China, such as Xinjiang, significantly contribute to exporting virtual water and is responsible for 70%–85% of the virtual water outflow. Furthermore, more than 50% of virtual water imported from water-rich regions is attributed to these water-stressed areas while their trade partners bear the rest water responsibility. In contrast, southern China's abundant water resources reduce dependence on virtual water trade, leading to fewer responsibilities. Globally, the allocated responsibility for the new accounting mechanism reaches up to 7.5 times higher than for production-based accounting (PBA) and consumption-based accounting (CBA). Our study also reveals that the degree of dependency (price elasticities) plays a pivotal role in shaping the allocation outcomes. The implications of this research are significant for establishing a transparent and accountable framework for sustainable water resource management and facilitating seamless transitions toward sustainability. As global water scarcity intensifies, the redefined responsibility accounting according to the economic welfare is indispensable in addressing immediate and long-term water-related challenges. • We refine a mechanism to reallocate responsibility based on economic welfare gains. • Notable differences exist between results of the new mechanism and current production, consumption, and income-based methods. • Water-stressed areas bear higher proportions of virtual water responsibility. • Price elasticities play a crucial role in determining responsibility allocations. [ABSTRACT FROM AUTHOR]

Many water footprint studies have been conducted on those water scarce regions to respond their water crisis, while water rich regions also face water sustainability challenges due to inadequate water management or being virtual water exporter. Therefore, this paper tries to clarify the water footprint and detail virtual water flow features of a water-rich province, namely Yunnan province in China, to pursuit for more enlightenment for water conservation of not only water scarce regions but also water abundant regions. Multi-regional input-output (MRIO) method was adopted for water footprint and virtual water flow calculation. Results showed that the total water footprint of Yunnan was 11.35 billion m3, with 7.98 billion m3 (70%) of internal water footprint, demonstrating that Yunnan was a high water self-sufficient province. Moreover, Yunnan was a net virtual water exporter with a value of 1.18 billion m3, which was not good for Yunnan but was good for water scarce provinces. As for the detailed virtual water flow trade, high water intensity Guangxi, Hunan, Xinjiang were the top three net importers of Yunnan, while low water intensity Guangdong, Shanghai and Zhejiang were the top three export provinces of Yunnan. This did not affect Yunnan, but was not a good phenomenon for water sustainability of whole China. Moreover, agricultural sector was found to be the dominant sector for both virtual water import and export, accounting for about 88% and 86%, respectively. To maintain sustainable water management of both Yunnan and China, policy insights on keeping Yunnan as a net virtual water exporter, making use of its advantage in green water, adjusting trade structure by considering provincial water intensity were proposed. [ABSTRACT FROM AUTHOR]

Water depletion and pollution caused by industrialization have become major environmental concerns worldwide, which are further complicated by the urbanization and globalization. China has become an industrial powerhouse for the world, and its industrial activities-induced water pressure is no longer negligible. This study investigates China's industrial water pressure from final consumption and international export based on water footprint (WF) and dynamic structure decomposition analysis (SDA). The industrial blue and gray WFs with respect to rural consumption, urban consumption, and export are accounted for 2002–2015, and an advanced dynamic SDA model is developed and applied to examining the evolving WFs with 9 socio-economic drivers quantified. Results show that China's water resources pressure is intensified due to the increase of total industrial blue WF (by 47.4%) for 2002–2015, whereas a mitigation of water environment pressure is suggested by the decreasing gray virtual water outflow and total internal gray WF (by 31.9% and 36.4%, respectively). The SDA demonstrates that export scale and urban consumption level are two major drivers of water situation deterioration, which accumulatively contribute 38.3% and 33.0% to the evolving blue and gray WFs, respectively. In contrast, technology development is the dominant contributor alleviating China's water pressure, with absolute contribution proportions of 38.9% and 56.5%, correspondingly. Based on these, export regulation, consumption pattern adjustment and technological innovation are recommended for water policy making. The methodology used in this study can be extended to diagnosing the water issues in other nations/regions as well. • China's industrial blue and gray WFs from rural consumption, urban consumption, and export are separately accounted. • The effects of nine drivers on the WFs are examined using an advanced dynamic structural decomposition analysis model. • Intensified water resources pressure and relieving water environment stress from industrialization are recognized. • Export scale and urban wealth level principally drive up China's industrial WFs. • Technology development dominantly alleviates the water pressure. [ABSTRACT FROM AUTHOR]

Grey water footprint (GWF) accounting has previously been conducted at the global level using a bottom-up approach but lacking detailed industrial information. Here we applied a multi-region input-output approach based on the World Input-Output Database (WIOD) to quantify global GWF of 40 countries/regions with 35 economic sectors. The GWF from both the production perspective (GWFP), and the consumption perspective (GWFC) are quantified. The results show that the global GWFP/GWFC was 1507.9 km3 in 2009. Except for the "Agriculture, Hunting, Forestry and Fishing" sector, the industrial sectors with the largest GWFC were "Food, Beverages and Tobacco", "Construction", "Chemicals and Chemical Products", and "Textiles and Textile Products". The BRIC countries (Brazil, Russia, India, China) had a larger GWFP than their GWFC, which accounted for over half of global GWFP (53.6%), and their GWFP was mainly generated from the production of domestic final demand. In contrast, the OECD29 and EU27 groups of countries i.e. the country groups consisting mainly of economically advanced nations, had larger GWFC than their GWFP. Overall, the OECD29 and EU27 outsourced 134.8 km3 and 64.4 km3 of their grey water respectively, mostly to large newly advanced economies such as the BRIC group of countries, which, in turn, were collectively outsourcing 112 km3 of grey water. Quantitative approaches are thus suggested for development, aimed at shared responsibility for water pollutant discharge among poor exporters and wealthy consumers. • Global Grey Water Footprint (GWF) was quantified from production and consumption perspectives. • Multi-region input-output approach was applied to account for GWF of 40 countries/regions. • Global GWF was 1507.9 km3 in 2009. • BRIC countries accounted for 53.6% of the global GWF from production perspective. • OECD29 and EU27 outsourced 134.8 and 64.4 km3 of their grey water, respectively. [ABSTRACT FROM AUTHOR]

International trade of soybeans has increased substantially over recent decades. Its environmental toll is routinely linked to deforestation and biodiversity loss. However, soybean trade also imposes a huge demand on water and land resources, in individual countries and globally. Such a burden, and its underlying sectoral drivers, is frequently overlooked within the current research and policy agenda around sustainable soybean supply chains. This study evaluates the Virtual Water Trade (VWT) and Virtual Land Trade (VLT) of global soybean trade and reveals which countries and sectors are responsible. Soybean-related VWT and VLT are estimated by combining physical import and export data and associated resource use information from 166 countries during the period 2000–2016. Over this period global virtual soybean-related virtual water and land trade grew by 298% and 250% respectively. In 2016, 812 Gm3 of water use and 41 Mha of land use was directly embodied in international soybean trade. This corresponds to one-third of water and land used to grow soybean globally. Soybean-related VWT and VLT was mainly driven by demand in China, the Netherlands and Mexico, for soybean grown in the US, Brazil and Argentina. Animal feed is responsible for around three-quarters of this resource use. A reduction in the consumption of animal products or switching to direct human consumption of soybeans would reduce the overall demand for soybean production and associated resource use. Although welcome, calls for deforestation-free soybean supply chains do not go far enough to reduce the large, global water and land demand of soybean trade. The research and policy agenda around soybean trade warrants a broader focus on water and land use and whether this represents an efficient, and logical, allocation of resources within the context of food provision and national resource security. [ABSTRACT FROM AUTHOR]

The pattern of virtual water trade within a region or region has a certain complexity. This paper uses multi-regional input-output models, local and tele-coupling theory, and geographical detectors to analyze the short-range and remote spatial pattern, change trends, and influencing factors of China's virtual water trade, which has essential research significance for the sustainable development and utilization of water resources. The results are as follows: (1) The water footprint and virtual water trade of each province in China are more likely to occur between the provinces close to each other, the local distance average distance is below 500 km, and the remote average distance is between 1100 km and 2000 km; (2) China's short-range inflow and outflow water footprint has always been the main dependent part of China's consumption and production end water resources, especially the local water footprint. The contribution of the remote water footprint has gradually been "replaced" by the short-range water footprint, and water resources only form a "small cycle" between the local and surrounding areas, becoming the main pattern of sustainable utilization of water resources in China; (3) The flow pattern of water resources in China still has a spatial imbalance and agglomeration effects. Regions with abundant water resources are net inflow and net import regions in both short-range and remote, and the net inflow and net outflow values in remote are higher than those in short-range; (4) The virtual water trade in all provinces of China tends to be close to each other. The "flow" in the trade network is mainly concentrated in the link path below 800 km. The interaction of various "flows" in short-range and remote virtual water trade results in fewer "flows" on one side and more on the other side in the industrial link path. Local virtual water trade has become an important guarantee and foundation for the utilization of water resources in all provinces and an important auxiliary to the total import virtual water trade; (5) The correlation of socio-economic factors to China's short-range and remote virtual water trade is higher than that of natural factors and scientific and technological factors. The interaction of factors contribution of a single factor more thoroughly and even far exceeds the sum of the contribution of two single factors, which can better explain the formation and change of near and long-distance virtual water trade patterns and flow on the link path. [ABSTRACT FROM AUTHOR]

Indirect trade of water (virtual water) through export of crop and livestock products may pose a risk to water resources in the exporting country. Management strategies can be framed by identifying the partner countries and the current status of water resources in these countries. This study for the first time analyses the virtual water trade of India considering the specific virtual water contents of crop and livestock products from all partner countries from 1986 to 2013 (28 years). Average virtual water export of India is 59 Bm 3 /y and virtual water import is 32.6 Bm 3 /y. Net virtual water import (−26.4 Bm 3 /y) indicates India is a major exporter. Oil, cereals, industrial products (cotton, jute, hides etc.) and semi-luxury goods contribute to 79% of virtual water export. Oil and nuts contribute to 71% of virtual water import. Decline in virtual water trade due to slow economic growth and impact of floods are reflected in the inter-annual variation. Highest virtual water trade from India is to countries in Asia (74% as virtual water export and 59% as virtual water import). Virtual water import to India are mainly through palm oil, cashew nuts, soybean, sunflower oil, wheat, rubber, cotton and pulses. Water footprint of India has increased by 1.3 times in 28 years. Strategies for sustainable management of water resources in India and the partner countries should aim at reducing the import of water-intensive goods from water-scarce countries and increasing import of water-intensive goods from water-abundant countries. [ABSTRACT FROM AUTHOR]

The Trans-Pacific Partnership Agreement (TPPA) is one of the most important multilateral free trade and investment agreements in recent years. Although as a major economic power in the Asia-Pacific region, China has yet to join the TPPA. Existing research on China and TPPA countries has mainly been conducted from political and economic perspectives. This paper first reports the relationship between China and TPPA countries from the perspective of virtual water trade of agricultural products and completes a diachronic analysis from 2001 to 2014. The results indicate that China was in virtual water trade surplus with TPPA countries for agricultural products and that the surplus had an expansion trend. The exported virtual water totalled 7.47 billion m 3 /y, whereas 63.45 billion m 3 /y was embedded in imported products. Malaysia was the biggest virtual water surplus partner of China and Japan was the biggest virtual water deficit partner. Additionally, the proportion of the grey water footprint of agricultural products that China exported to TPPA countries was about five times higher than that imported from TPPA countries. It reflected the difference of agricultural science and technology. Moreover, the products structure of China's virtual water trade was not reasonable and was excessively focused on several products. Finally, with respect to environmental and water allocation ethics, TPPA countries were classified into four types in terms of net import and water abundance: mutual benefit countries (Australia, Canada, New Zealand, the United States, Malaysia and Chile); unilateral benefit countries (Peru and Brunei); supported countries (Japan and Singapore); and double pressure countries (Mexico and Vietnam). With respect to the virtual water trade of agricultural products, there is a close relationship between China and TPPA countries. The virtual water trade promotes the sustainability of water resources and the findings are conducive to the adjustment of trade structure to achieve optimal state of ecology, economy and politics. [ABSTRACT FROM AUTHOR]

With the aim of balancing and reducing the inflows and outflows of water between cities, urban water management is critical in China's goal of alleviating water stress and promoting water sustainability. In facilitating further understanding of the supply and demand of urban water resources, analysis of the direct and indirect water profiles of cities is considerably beneficial. In the present study, by compiling a nested multi-regional input output table, for the first time, the city-level water footprints for 26 Yangtze River Delta cities were estimated and the virtual water trade patterns at home and abroad were investigated as well as the impact thereof on urban water resource stress. The results show that the total water footprint of the urban agglomeration was 114.8 Gm3 in 2012 and over 50% of the water footprint could be attributed to virtual water inflows which were mainly shaped by agriculture and light industry. The net virtual water inflow was 9.0 Gm3, indicating that virtual water trade alleviates the shortage of water resources in the region. At the city level, richer cities tended to have a higher water footprint by importing large amounts of virtual water to satisfy their higher requirements for the quality of life and larger household consumption. However, less developed water-abundant cities had more water footprint from infrastructure construction, and exported considerable virtual water to other cities, thereby exacerbating local water stress of these cities. The inter-city virtual water flows within the Yangtze River Delta were contributed by multiple industry sectors and the inequality of urban water scarcity among cities therein has been alleviated to a certain extent. Our results highlight the importance of simultaneously considering both the volume and the impact of water use in virtual water trade analyses. The present authors conclude that attention needs to urgently shift from supply-oriented water management to urban water demand management. [Display omitted] • A nested MRIO model concentrating on Yangtze River Delta (YRD) cities was compiled. • City-level water footprint and virtual water trade of the YRD region have been revealed. • Household consumption contributed the most to the city-level water footprint. • The region got net water inflow via domestic trade but suffered water loss in foreign trade. • Virtual water trade has alleviated the water stress situation of the YRD region. [ABSTRACT FROM AUTHOR]

Virtual water trade analysis investigates the embedded volume of water associated with the movement of a good from production to consumption. Energy-derived virtual water trade includes electricity, fossil fuels, and other energy resources and their water footprints. This growing field aids in understanding competition for scarce resources and the burden shift from energy consumption to production. This review investigates recent trends in energy virtual water trade from 2007–2021. Through the review, we find several limitations of the current practice, including lack of inclusion of hydroelectric footprints, inconsistent definitions of water footprint, and varying methods of assessment. A majority of studies assessed virtual water trade at the annual scale, neglecting inter-annual variability, and were primarily focused on a few locations, such as China and the United States. We recommend that future studies improve understanding of sub-annual variability in virtual water trade, prioritize local empirical data to avoid data misappropriation, and characterize uncertainty to promote policy. Through this review of virtual water of energy research, we identify existing themes and propose future directions to facilitate enhanced utility of the methods. • Virtual water of energy emphasizes the burden shift from consumption to production. • Few studies analyze sub-annual trade, limiting comparisons to seasonal hydrology. • Data are often generalized and few studies capture uncertainty in their results. [ABSTRACT FROM AUTHOR]

Central Asia is a strategic geopolitical region, which has recently been identified to be on the verge of a water-related crisis. Yet, most studies addressing water-related issues across Central Asia have lacked multi-sectoral and cross-country perspectives. This study used the multi-region input−output model to quantify the water footprint in Central Asia as well as the STIRPAT technique to study its driving forces from 1995 to 2015. The results revealed that the production and consumption-based water footprints of Central Asia sharply increased, as proven by the growth rate of 12.69 × 109 m3/annum and 9.52 × 109 m3/annum, respectively. The water-intensive agriculture sector completely dominated Central Asia's water footprint. In addition, between 1995 and 2015, the volume of imported and exported water footprints in Central Asia increased. In terms of exports, the internal water footprint accounted for 3%–5%, whereas the external accounted for 95%–97%. With respect to imports, the internal water footprint dropped from 50% to 37%. Nevertheless, the gap between export and import volumes was approximately ten-fold, which revealed that international trade exacerbates Central Asia's water crisis. Furthermore, urbanisation was revealed to have significant positive effect on water footprint changes compared to population, gross domestic product (GDP) and water use efficiency in Central Asia. This study provides policy implications for promoting Central Asia's water resource management, as well as highlighting the driving forces of water footprint that need attention, resulting in cooperative water resource management to promote sustainable development. [Display omitted] • This study quantified the water footprint in Central Asia. • The production and consumption-based water footprints increased by 12.69 × 109 and 9.52 × 109 m3/a. • The agricultural sector dominated the water footprint's growth. • Europe is the largest export destination of Central Asia's water footprint at 69%. • Urbanisation was revealed to have significant positive effect on water footprint. [ABSTRACT FROM AUTHOR]

Abstract: Water is scarce in Beijing, China, and rapid economic and societal development, as well as the dense population, causes severe pressure on local water resources. This paper involves the “water footprint”, defined as the volume of water needed to produce the goods and services consumed, which quantifies the environmental impact of consumption. By combining an input–output model with intersectoral water flows, this paper describes a modified input–output model to calculate the direct, indirect and gross water footprint intensity and the gross water footprint of different sectors in Beijing in 2002 and 2007. The results show declines in the agricultural and industrial water footprints for these years. The grey water footprint, which reflects environmental pollution caused by human production and consumption, was also calculated and suggests that the shortage of water resources, rather than water pollution, is the main problem in Beijing. Evaluation of the virtual water trade, along with water savings in the various sectors, verified that Beijing is a net virtual water importer. Furthermore, the water footprint shows that Beijing is advanced in water use efficiency compared to other provinces in China. Finally, adjustments in the industrial structure, along with virtual water importing, should be prioritized as water-saving strategies for Beijing. [Copyright &y& Elsevier]

Freshwater resources are used to produce commodities that are traded and consumed elsewhere, which generate virtual water flows. The relation between regional blue water scarcity levels―the degree of competition over limited surface and groundwater flows―and inter-regional virtual water flows has been studied. However, the effects of production fragmentation on this relation are still not properly understood. Production fragmentation is the distribution of the production process across different regions, resulting in inter-regional trade of both intermediate and finished goods and services, which involve different virtual water networks. This study formulates a comprehensive trade disaggregation approach to elaborate the virtual water networks of three trade patterns (i.e., direct final goods trade, intermediate goods trade for the last step of production, and value chain-related trade) within China, and further analyzes the impacts of trade on provincial blue water scarcity by comparing the actual water scarcity with that under a "no-trade" scenario (NTS). In 2012, there was 128 km3 blue water virtually transferred across provinces because of inter-provincial trade. Direct final goods trade contributed the most to the virtual water trade (accounting for 47% of the total), whereas value chain-related trade induced the least (17%). Compared with the results under the NTS, we found that current trade alleviated the water scarcity in provinces under extreme water scarcity, but worsened the water scarcity of this nation from a broader scope. Our study suggests policy makers fully considering specific trade patterns and their impacts on provincial or national water consumption to cope with water scarcity in China. [Display omitted] • A comprehensive disaggregation approach to elaborate VWFs of three trade patterns. • Develop a "no-trade" scenario to analyze the impacts of trade on BWC and scarcity. • In 2012, there was 128 km3 blue water that virtually transferred across provinces. • 47% of the total water trade by final goods trade, 36% by intermedia. goods trade. • Trade alleviated the water scarcity in most provinces but worsened it nationally. [ABSTRACT FROM AUTHOR]

With fast development of economy and trade globalization, the water resources system has undergone profound changes due to the overconsumption of physical water and the complex virtual water flow. China is poor in water and rich in arable land for the north, but rich in water and poor in arable land for the south. The spatial mismatch of water and food production has posed a great threat to sustainable development. To quantify the virtual water flow with grain trade and evaluate its influence on the regional water resources system, this study simulated the interprovincial virtual water flow embedded in grain transportation based on a linear optimization model and assessed the water pressure induced by virtual water flow. Results show that the annual virtual water flow (as much as 73.46 billion m3 in 2012) associated with interprovincial grain trade is mainly from the North to the South. The grain output areas are mainly located in the Northeast, Northwest, and the North China Plain, while the grain input areas are mainly distributed in the eastern and southern coastal provinces with well-developed economies. According to the estimation, when China's food demand reaches a peak of 650 million tons in 2030, the virtual water flow will further increase and the volume of virtual water flowing out of Northeast China will be up to 50 billion m3, accounting for 90% of the total virtual water flow. The increasing the virtual water outflow in North China will severely exceed the local water resources capacity in the arid and semi-arid areas and have an obvious negative impact on sustainable development in Northern China. Further improving the water use efficiency, adjusting the structure of spatial grain production distribution and physical-virtual water coupled management are effective countermeasures to ensure the coordination safety of food and water in China. Image 1 • There is a mismatch between water resources and cultivated land resources in China. • Anticipated population increases will exacerbate this problem in the future. • This study simulated interprovincial virtual water flow embedded in grain transportation. • Annual virtual water flow associated with grain trade is mainly from north to south. • Virtual water outflow in much of North China will exceed local water capacity. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between international trade of avocado and the related virtual water trade over the period 2000–2016. Using a Physical Trade Analysis, we show that commercial and virtual water trade grew rapidly moving almost hand-in-hand in the years taken into account: in parallel with a remarkable increase of international trade of avocado from 0.4 Mt in 2000 to 1.9 Mt in 2016, the global virtual water trade of avocado increased from 408 Mm3 to 2238 Mm3 over the same period. The analysis emphasizes a large disparity between developed and developing countries, with the former being net importer of water and the latter large net exporter. In particular, large avocado-related water flows move from countries already under chronic water stress such as Mexico, Peru and Chile towards more water-rich regions such as US, Japan, Canada and the European Union. As a consequence, the overexploitation of water underlying the avocado trade flows may end up worsening environmental conditions in many relatively poor countries in which the export of avocado is often regarded as an important source of economic growth. • We study virtual water trade of avocado using Physical Trade Analysis over 2000–2016. • Avocado is mainly exported from water-poor to water-rich countries. • Large water flows move from Mexico, Peru and Chile to US, Japan, Canada and the EU. • Intra-European trade shows large re-exports from Spain and the Netherlands. • Export of avocado may worsen water scarcity in many relatively poor countries. [ABSTRACT FROM AUTHOR]