We advance the notion of agricultural economic water scarcity to identify where irrigation expansion may increase food production.

Water availability is a major factor constraining humanity's ability to meet the future food and energy needs of a growing and increasingly affluent human population. Water plays an important role in the production of energy, including renewable energy sources and the extraction of unconventional fossil fuels that are expected to become important players in future energy security. The emergent competition for water between the food and energy systems is increasingly recognized in the concept of the “food‐energy‐water nexus.” The nexus between food and water is made even more complex by the globalization of agriculture and rapid growth in food trade, which results in a massive virtual transfer of water among regions and plays an important role in the food and water security of some regions. This review explores multiple components of the food‐energy‐water nexus and highlights possible approaches that could be used to meet food and energy security with the limited renewable water resources of the planet. Despite clear tensions inherent in meeting the growing and changing demand for food and energy in the 21st century, the inherent linkages among food, water, and energy systems can offer an opportunity for synergistic strategies aimed at resilient food, water, and energy security, such as the circular economy.

Significance: Water’s ability to generate value in irrigated agriculture remains poorly quantified at the global scale. The valuation of irrigation water is an important piece of information not only for agribusiness investors interested in the acquisition of land and water entitlements but also for farmers and rural communities that are negotiating with such investors. To make an informed decision about the acquisition or relinquishment of water rights or about investments in irrigation infrastructure there is a need for a better understanding of the value generated by irrigation water in agriculture using methods that rely on globally available data. This study provides a high-resolution global assessment of irrigation water value as a function of crop type and geographic location.

Significance: Climate change is expected to reshape the distribution of irrigated lands. Using climatic projections from three global climate models, we investigate global patterns of irrigation water demand and availability in 1.5 °C and 3 °C warmer climates. We find that in up to 35% of currently rain-fed croplands, irrigation could be expanded as an adaptation strategy to climate change without negative environmental externalities on freshwater resources. Irrigation expansion could reduce vulnerability to water stress and improve crop productivity to feed up to 300 million additional people using small-scale water storage and up to 1.4 billion additional people using large-scale water storage. This work contributes to identifying target regions where investments in sustainable intensification of agriculture through irrigation expansion are needed.

Recent studies have highlighted the reliance of global food production on unsustainable irrigation practices, which deplete freshwater stocks and environmental flows, and consequently impair aquatic ecosystems. Unsustainable irrigation is driven by domestic and international demand for agricultural products. Research on the environmental consequences of trade has often concentrated on the global displacement of pollution and land use, while the effect of trade on water sustainability and the drying of over-depleted watercourses has seldom been recognized and quantified. Here we evaluate unsustainable irrigation water consumption (UWC) associated with global crop production and determine the share of UWC embedded in international trade. We find that, while about 52% of global irrigation is unsustainable, 15% of it is virtually exported, with an average 18% increase between year 2000 and 2015. About 60% of global virtual transfers of UWC are driven by exports of cotton, sugar cane, fruits, and vegetables. One third of UWC in Mexico, Spain, Turkmenistan, South Africa, Morocco, and Australia is associated with demand from the export markets. The globalization of water through trade contributes to running rivers dry, an environmental externality commonly overlooked by trade policies. By identifying the producing and consuming countries that are responsible for unsustainable irrigation embedded in virtual water trade, this study highlights trade links in which policies are needed to achieve sustainable water and food security goals in the coming decades.