Decoupling of Economic Growth and Industrial Water Use in Hubei Province: From an Ecological–Economic Interaction Perspective

Abstract

Rational water use is the basis for sustainable development. The issue of how to use limited water resources to satisfy the high rate of economic development has attracted a great deal of attention from society. This paper presents a quantitative analysis of the intrinsic relationship between economic growth and industrial water use changes in Hubei Province based on panel data from 2004 to 2019. With the help of the Tapio decoupling model, the problem of decoupling the economic growth of Hubei Province and the water use of the three industries in 15 years was discussed. On the basis of Kaya’s extended identity, the Logarithmic Mean Divisia Index (LMDI) index decomposition method is used to evaluate the driving factors and steady state changes in the three industries’ water use. The results show that, with regard to the decoupling state, there are three decoupling states between economic growth and industrial water use in Hubei province: negative decoupling, strong decoupling, and weak decoupling, which showed a phase characteristic. From the decomposition of the factors, the industrial structure effect and the water intensity effect are the key factors that determine the decoupling of economic growth and industrial water use in Hubei Province, as well as the core driving force to promote the decoupling state. According to the development trend, Hubei Province needs to take into account the efficiency and affordability of water resources in the process of promoting social and economic development. Therefore, in line with the research outcomes, this study provides effective and feasible recommendations for promoting sustainable economic and social development in Hubei Province.