Abstract
Although some studies have focused on the logical connection between industrial water consumption in the industrial economic development (IED) and industrial wastewater treatment (IWT) stages, the master–slave game relationship between these stages has not been considered. This study selected panel data from 30 provinces in China from 2011 to 2015, divided these provinces into IED- and IWT-dominated regions, and developed a two-stage data envelopment analysis (DEA) model based on the master–slave game relationship between the IED and IWT stages. In addition, a regression model based on the Simar–Wilson approach was constructed to reveal the effects of urbanization on industrial water consumption efficiency. The results show that the industrial water consumption efficiency in China slightly fluctuated from 2011 to 2015, and there was no significant efficiency improvement. The efficiency of the IED stage was generally higher than that of the IWT stage, and the efficiency gap between stages was smaller in IED-dominated regions than in IWT-dominated regions. Urbanization has different effects on industrial water consumption efficiency, and the same factor can have significantly different effects in different regions. Some policy implications are proposed for the different types of regions.
Highlights
The development of industry in China has achieved great success since the reform and expansion plans were implemented, industrial water consumption and wastewater disposal issues have become increasingly serious
China is not a water-rich country, and rapid urbanization has occurred in recent years
The effects of urbanization on industrial water consumption efficiency must be analyzed, and the efficiency of water use should be improved with new methods during this period of rapid urbanization in China
Summary
The development of industry in China has achieved great success since the reform and expansion plans were implemented, industrial water consumption and wastewater disposal issues have become increasingly serious. In 2016, the proportion of water consumption by industries in China reached 21.7%, and the total amount of wastewater discharged reached 71.10 billion tons [1]. China is not a water-rich country, and rapid urbanization has occurred in recent years. This urbanization has promoted industrial development [2], which has increased industrial water consumption and wastewater discharge. The effects of urbanization on industrial water consumption efficiency must be analyzed, and the efficiency of water use should be improved with new methods during this period of rapid urbanization in China. There are two important issues related to this topic: determining how to scientifically evaluate industrial water consumption efficiency and identifying the key factors that affect industrial water consumption efficiency to develop reasonable policies
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