Drivers of dynamic evolution in provincial production water usage: perspective of regional relevance.

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.