The added value of a water footprint approach: Micro- and macroeconomic analysis of cotton production, processing and export in water bound Uzbekistan

Since independence from the former Soviet Union in 1991, Uzbekistan is challenged to consolidate its efforts and identify and introduce suitable agricultural policies to ease the threat of advancing land, water and ecosystem deterioration. On the one hand, irrigated cotton production provides income, food and energy sources for a large part of the rural households, which accounts for about 70% of the total population. On the other hand, this sector is considered a major driver of the on-going environmental degradation. Due to this dual nature, an integrated approach is needed that allows the analyses of the cotton sector at different stages and, consequently, deriving comprehensive options for action. The findings of the economic based value chain analysis and ecologically-oriented water footprint analysis on regional level were complemented with the findings of an input-output model on national level. This combination gave an added value for better-informed decision-making to reach land, water and ecosystem sustainability, compared to the individual results of each approach. The synergy of approaches pointed at various options for actions, such as to (i) promote the shift of water use from the high water consuming agricultural sector to a less water consuming cotton processing sector, (ii) increase overall water use efficiency by expanding the highly water productive industrial sectors and concurrently decreasing sectors with inefficient water use, and (iii) reduce agricultural water use by improving irrigation and conveyance efficiencies. The findings showed that increasing water use efficiency, manufacturing products with higher value added and raising water users' awareness of the real value of water are essential for providing water security in Uzbekistan. (C) 2013 Elsevier B.V. All rights reserved.