An Analysis of Water Consumption and Pollution with the Input-Output Model in the Haihe River Basin, China

Abstract

It is widely believed that the economic success in China is achieved at the expense of natural resources and has resulted in severe pollution of the environment, especially water resources. This study applies a hybrid input-output (IO) model linking economic and ecological systems in order to analyze water consumption and wastewater discharge in the Haihe River Basin. Within the environmental IO framework, a series of assessment indicators is calculated to assist in tracking both direct and indirect effects of freshwater consumption and wastewater discharge in the economic sector, as well as to distinguish the economic sectors that have greatest influence on water demand and pollution. Assessment results indicate that water consumption and pollution can be reduced by readjusting the structure of production, consumption and trade in the Haihe River Basin. It is concluded that in order to achieve sustainable development in the Haihe River Basin with its very poor water endowment, not only the direct but also the indirect effects on water demand and pollution should be considered when production, consumption and trade policies are formulated.