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USDA iilll Unit ed :States Department of Agriicuiture Economic Research Service 1, · 11 ·H·. ers. tl.\d,1 . g,11 · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Sarah Rehkamp, Patrick Canning, and Catherine Birney 2018 FCSM Research and Policy Conference March 9, 2018 The views expressed are those of the authors and should not be attributed to the Economic Research Service or USDA
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Page 1: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

USDA iilll United :States Department of Agriicuiture

Economic Research Service 1,·11·H·.ers. tl.\d,1 .g,11 ·

Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output

Modeling of the U.S. Food System Sarah Rehkamp, Patrick Canning, and Catherine Birney

2018 FCSM Research and Policy Conference March 9, 2018

The views expressed are those of the authors and should not be attributed to the Economic Research Service or USDA

Page 2: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

USDA Economic Research Service ~ iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

Motivation for studying water

• Water is a finite natural resource and primary input in the U.S. food system.

• Water faces stress due to:

– Climate change

– Population growth

– Dietary changes

2

Page 3: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

ro "C

400,000

350,000

300,000

250,000

~ 200,000 0.0 2

150,000

100,000

50,000

0 1995 2000 2005

- Aquaculture - Domestic - Irrigation - Industrial

- Mining - Thermoelectric - Public Supply ~ Population

USDA Economic Research Service iiiillll I\ . H' H ·. l' f .\ • 11.H I". g OI '

320,000

310,000

300,000

~ "C

290,000 C: ro Vl .... ::::, 0

..c: 280,000 ..:!::..

C: .Q +-' .!!1

270,000 ::::, Cl. 0 c..

260,000

250,000

240,000 2010

- Livestock

Water withdrawals 1995-2010

3

Source: Authors’ calculations based on USGS data

Page 4: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

USDA Economic Research Service ~ iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

Motivation for linking data sources

• Environmental input-output (EIO) model

– Allows for measurement of direct and indirect water

– Used widely in the literature for resource assessment

• Answer interesting policy questions within an economic systems framework

– Rehkamp and Canning (2018) study water use in the U.S. food system using EIO

– We are now expanding to a multi-year analysis

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Page 5: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

Farm Inputs

Water is used along all stages of the supply chain

Crop Foodservice Production

Processing •

Livestock Food Production Retailing

Household Consumption

Packaging Energy Transportation Wholesaling

USDA Economic Research Service iiiiillllll 1rw11 ·. ('r., . tt.\cla .gm· 5

Source: Lori Fields, USDA-ERS

Page 6: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

- - -

USDA Economic Research Service ~ iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

Objective

• Link 8 broad water use categories from USGS to 344 narrower sectors in the EIO model

Water use categories

NAICS based industries

EIO sectors

NAICS based industries

NAICS based industries

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Page 7: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

USDA Economic Research Service iiiiillllll 11'H ·11 ·• t'r.,. tt.\cla.gm·

fR gi t r d lrrigati 11

Ue U 07 11 Ill br ka

, I 11111 h1 1 ut

Co ~or

I II llu,l, ·I,

7

Source: University of Nebraska (2018)

Page 8: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

-

USDA Economic Research Service iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

D

Allocation metrics

Aquaculture Industrial Irrigation Livestock Mining Public Supply

Thermo electric

Disaggregation not necessary

Employment data from

County Business Patterns

Employment data from

County Business Patterns

Irrigated acreage in

county from Census of

Agriculture multiplied

by state irrigation

rate by crop from FRIS

Livestock inventory

from Census of

Agriculture and water

use coefficients by livestock from USGS

Public water outlays from IO model

Disaggregation not necessary

Note: Net public supply is allocated and

8

domestic water withdrawals allocated to households

Page 9: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

\

USDA Economic Research Service ~ iiiillll I\ . H' H ·. l' f .\ • 11.H I". g OI '

y }

I j , ,

Irrigation allocation

𝑊𝑊𝑖𝑟𝑟𝑖𝑔𝑎𝑡𝑖𝑜𝑛,𝑔,𝑛 = 𝑊𝑊𝑖𝑟𝑟𝑖𝑔𝑎𝑡𝑖𝑜𝑛,𝑔 x [𝐴𝑐𝑟𝑒𝑠𝑔,𝑛 𝑥 𝐼𝑟𝑟𝑅𝑎𝑡𝑒𝑔,𝑛]

σ𝑔,𝑛[𝐴𝑐𝑟𝑒𝑠𝑔,𝑛 𝑥 𝐼𝑟𝑟𝑅𝑎𝑡𝑒𝑔,𝑛]

Source data from USGS Share of n

based on allocation

metric

where WW is water withdrawals g is geographical index n is commodity index Acres is irrigated acres harvested (Census of Agriculture) IrrRate is irrigation rate (Farm and Ranch Irrigation Survey)

9

Page 10: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

l ____ J y

USDA Economic Research Service ~ iiiillll I\ . H' H ·. l' f .\ • 11.H I". g OI '

Livestock allocation

𝑊𝑊𝑙𝑖𝑣𝑒𝑠𝑡𝑜𝑐𝑘,𝑔,𝑛 = 𝑊𝑊𝑙𝑖𝑣𝑒𝑠𝑡𝑜𝑐𝑘,𝑔 x σ𝑔,𝑛[𝐼𝑛𝑣𝑔,𝑛 𝑥 𝑊𝑈𝐶𝑛]

Source data

[𝐼𝑛𝑣𝑔,𝑛 𝑥 𝑊𝑈𝐶𝑛]

Share of n from USGS based on allocation

metric

where WW is water withdrawals g is geographical index n is commodity index Inv is livestock inventory (Census of Agriculture) WUC is water use coefficient (USGS)

10

Page 11: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

1· m111 I: :J. n..ig ,1 ,

s ject to

2 L 3

4 L 5 V

USDA Economic Research Service iiiillll I\ . H' H ·. l' f .\ • 11.H I". g OI '

,g,r r · H r§ , r .

, ,.

r ~ ., r r ~ ~

r 0

Constrained maximum-likelihood estimation for data suppressions

11

Commodity constraint peaches < non-citrus fruit

Geography constraint county < state

Row constraint bearing age acres < total

Source: Canning (2013)

Zero variance of published statistic

Page 12: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

USDA Economic Research Service iiiillll I\ . H' H ·. l' f .\ • 11.H I". g OI '

Livestock example

• Use geographical and commodity constraints • Also inform the model by number of farms by inventory range

.. -··-··--·--··-·-··-··--·-

100

---·-··-·· .. -

ventory a d Sa es: 2007 and 2002 - Con. J

12

Source: Census of Agriculture (2007)

Page 13: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

- - -

USDA Economic Research Service ~ iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

Linking water to industries

13

Also aggregate up geographically for EIO analysis.

Water use categories

Livestock

NAICS based industries

Beef cattle

EIO sectors Dairy and beef cattle

NAICS based industries

Dairy cattle

NAICS based industries

Other cattle

Page 14: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

Crop production

Household

Energy services

Livestock production -

Processing & paclkagi ng I

Distribut ion & marketing I

USDA Economic Research Service iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

0

mi l lion liters per day

U.S. food system uses 28% of total water withdrawals, 2005

369 billion liters of water = 148 million Olympic-sized swimming pools

14

Source: Rehkamp & Canning (2018)

Page 15: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

poultry, fish, and mixtures

Grain products

Sugars, sweets, and beverages

Vegetables I Fruits I

Milk and milk products

Legumes, nuts, and seeds

Eggs and egg products

Fats, oils, and salad dressings I 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

USDA Economic Research Service iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

Million liters per day

■ Crop production

■ Livestock production

■ Processing & packaging

■ Distribution & marketing

■ Energy services

■ Household_diet-related

Meats in current American diet use the most water

15

Source: Rehkamp & Canning (2018)

Page 16: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

USDA Economic Research Service ~ iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

Thank You!

Contact Information:

Sarah Rehkamp

[email protected]

202-694-5584

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Page 17: Linking USGS Water Use Data to Detailed Industries for ... · Linking USGS Water Use Data to Detailed Industries for Environmental Input-Output Modeling of the U.S. Food System Author:

USDA Economic Research Service ~ iiiillll I\ . H. H ·• l' f .\ . 11.H I". g {)I •

References

• Canning, P. 2013. “Maximum-Likelihood Estimates of a US Multiregional Household Expenditure System,” Econ Systems Research, Vol 25(2): June. pp.245-64

• Rehkamp, S. and Canning, P. 2018. “Measuring Embodied Blue Water in American Diets: An EIO Supply Chain Approach,” Ecological Economics, Vol 147: May. pp.179-188

• University of Nebraska. 2018. “Location of Irrigation Wells in Nebraska,” https://water.unl.edu/cropswater/newellsmap

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