Water scarcity and food security in the mediterranean region: The role of alternative water sources and controlled-environment agriculture

Climate change and population growth exacerbate water scarcity in the Mediterranean region, threatening food security. A variety of modeling approaches that embed water into a Computable General Equilibrium (CGE) framework is available. However, only a few studies incorporate non- conventional, alternative water sources (e.g., desalination, treated, brackish) into economic analyses. Alternative water sources vary in energy and capital intensity and, therefore, in costs and externalities. We present the first study to introduce alternative water sources to a global CGE model. We also investigate the role of novel technologies of controlled-environment agriculture (CEA) that save water and land at the cost of higher energy intensity than traditional agriculture practices. The results show that the availability of alternative water sources increases the domestic production of grain crops in the North Mediterranean region. The countries that gain the most from CEA technologies are those with a higher share of irrigation and skilled labor. The results reflect the significant value of alternative water sources and CEA technologies to the agricultural sector. The outcomes also indicate that alternative water practices and CEA may bring about a positive trajectory in food security and the global economy, with a negligible effect on energy use.