Evaluation of virtual water trade in the Yellow River Delta, China

Abstract

Virtual water trade is a method to reallocate water resources among regions, implementing virtual water strategy can alleviate the shortage of water resources. In the context of ecological protection and high-quality development of the Yellow River Basin, the evaluation of virtual water trade between the Yellow River Delta and other regions can provide decision support for the formulation of virtual water strategies and the promotion of high-quality development of the Yellow River Basin. This study used the 2012 multi-regional input–output table to calculate the volume of virtual water in trade between the Yellow River Delta and other provinces, and assessed the degree of dependence of the Yellow River Delta on external water resources. Research results indicated that virtual water trade exacerbates the shortage of water resources in the Yellow River Delta because virtual water export was greater than import. Specifically, agriculture was the most important virtual water export sector with an export of 117.2 kilosteres and the largest direction of virtual water was to the Northwest Region (45.4%). We suggest several strategies for virtual water management and high-quality development of the Yellow River Delta: (1) Implement virtual water trade strategy; (2) Reducing water export and promoting the competitiveness of water consumption by emerging industries; (3) Setting up an effective policy of virtual water compensation.