Drivers of dynamic evolution in provincial production water usage: perspective of regional relevance
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RESEARCH ARTICLE
Drivers of dynamic evolution in provincial production water usage: perspective of regional relevance Chao Gao 1 & Rui Xie 1
&
Youguo Zhang 2 & Kunfu Zhu 3
Received: 14 August 2020 / Accepted: 2 November 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract With the advancement of industrialization and urbanization, the issue of water shortage has become a bottleneck for China’s economic development. Based on the structural decomposition analysis and multi-regional input–output tables of China in 2002 and 2012, this paper explores the drivers of the change in China’s production water usage from the regional relevance perspective. Results show a significant increase in China’s production water usage during the study period. The relationship between production water usage and per capita GDP shows an inverted U-shaped curve, and the economic scale by provinces has been improved, while the trend of production water usage differs. There are rapid increases in production water usage in economically developing provinces, while it is falling sharply in developed provinces. The crucial factors promoting its growth are changes in consumption level, population scale, and regional economic patterns. The technical effect is the most important factor in curbing the growth, followed by effects of final demand sectoral and distribution structure. The provinces and sectors with more production water usage shows higher technical and final demand effects. Therefore, it is necessary to promote water-saving activities, enhance the water-saving technical effect, and optimize final demand structure to promote economic growth with low-water usage. Keywords Regional economic pattern . Structural decomposition analysis . Multi-regional input–output model . Production water usage JEL Classification Q25 . R58 . L95
Introduction With the comprehensive advancement of industrialization and urbanization, the contradiction between supply and demand of water resources in China has further intensified. The lack of water resources has become a bottleneck for the development
Responsible Editor: Philippe Garrigues * Rui Xie [email protected] 1
School of Economics and Trade, Hunan University, Changsha 410079, Hunan, People’s Republic of China
2
Institute of Quantitative & Technical Economics, Chinese Academy of Social Sciences, Beijing 100732, People’s Republic of China
3
Research Institution for Global Value Chains, University of International Business and Economics, Beijing 100029, People’s Republic of China
of China’s regional economy (Mou et al. 2019). Recent years have shown a clear upward trend in water use in China, enabling a high rate of production in different sectors (as shown in Fig. 1a). On the one hand, to alleviate China’s water resource problems, the government has introduced a series of policies on water resource management. The “13th Five-Year Plan for National Economic and Social Development of the People’s Republic of China” and the report of the 19th National Congress of the Communist P
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