Dear Friends,
I am not a researcher or an economist, but as an inspiration, we published a concept and idea on “The Need for a Virtual Water Currency and Virtual Water Trading System across all Countries” in the context of industrial products. This concept was first published in the Water Supply Journal in 2015 (https://doi.org/10.2166/ws.2015.047) and later, in a more mature and specific form, in the Water Policy Journal in 2022 (https://doi.org/10.2166/wp.2022.285).
You might be wondering why I am sharing this now. The relevance of a Virtual Water Currency and Virtual Water Trading System is more visible today than ever before, particularly in the context of current geopolitics. Whether it is orange or oil, importing or exporting any product involves water usage — from the mining or cultivation stage of raw materials to the final product on the shelf. The total water consumed by a product or service is called virtual water.
To give perspective: the virtual water content of rice ranges from 2,500–3,000 liters per kilogram; a single cup of coffee requires 130–140 liters; one pair of jeans, 7,500–10,000 liters; and a smartphone, about 12,000 liters. In industry, the water footprint is often measured per dollar of value added — meaning, “How much water does an economy use to produce USD 1 worth of industrial goods or services?” Globally, this averages 80 liters per USD of industrial product, ~100 L/USD in the U.S., and only 20–25 L/USD in India. If these numbers are incorrect, my sincere apologies due to my limited data access. I am trying to present a context rather than numbers.
In our paper, we proposed introducing a Virtual Water Currency alongside existing currencies like the dollar or rupee. Such a currency could help drive sustainability discussions and guide decisions so that we can pass on a livable planet to the next generation. In our second paper, we recommended creating an international Virtual Water–Based Trading System using blockchain to ensure transparency and principle-driven trade.
For example, if a smartphone has 100 components sourced from different countries, the assembler could check (via an immutable blockchain record) which components have the lowest virtual water content and highest quality, and choose to import those. Over time, this would build Virtual Water Consciousness among countries and manufacturers.
A simple policy or protocol can be defined based on historical evidence and future predictions — but I understand it’s not easy to design such rules, whether for a country, an organization, or an individual. I deliberately put the word “a” in quotes earlier because even a single letter in policy language can change the law and future interpretation. This is why governments and think tanks must be given time and respect for the complexity of their work, instead of facing emotional criticism.
To illustrate, you may have seen the Times of India article yesterday — “No income tax for son who sold late mother’s flat for ₹1.45 crore to buy seven houses; how a minor language error helped him”. Before the 2014 amendment, Section 54’s phrase “a residential house” was interpreted by courts to allow long-term capital gains exemption for multiple residential properties, not just one. In this case, the Bombay High Court ruled that his purchase of seven row houses in 1995 qualified for full exemption, as the restriction to “one” house applied only prospectively from AY 2015–16. This demonstrates how a single word in tax law — “a” or “one” — can significantly affect rights.
Similarly, we must think about virtual water in our import/export and production decisions, not based on emotions, but on the physical limits of Mother Earth. Readily accessible freshwater for humans, animals, and ecosystems is less than 1% of all freshwater — roughly 0.007% of Earth’s total water. Already, 2 billion people live in water-stressed areas.
What is your Virtual Water Consciousness?
Ravi Saripalle
No comments:
Post a Comment