Key points for green management of water-energy-food in the Belt and Road Initiative: Resource utilization efficiency, final demand behaviors and trade inequalities

Abstract

As the largest contemporary platform for international cooperation, the Belt and Road Initiative (BRI) may carry the risk of increasing pressure on water, energy and food (WEF) resources while driving economic development. WEF nexus analyses can help promote green and sustainable management of the BRI's resources, but has received little attention. Based on a multi-regional input-output model, this study identifies key points of WEF nexus management in the BRI from WEF utilization efficiency, final demand behavior and trade inequality. On the supply side, the common points of inefficiency in WEF use were primarily manufacturing and transport and communication in China and India, chemicals and manufacturing in Russia, and chemicals, manufacturing, and transport and communication in Iran. Water and food systems were closely linked through the planting industry. The focus for adjustment was the direct water and land use efficiency of the planting industry in India and Pakistan. On the final demand side, household consumption drove 73.6%, 50.0%, and 80.1% of WEF, respectively; particularly richer countries (e.g., South Korea and Italy) had more serious overconsumption problems. The macro-control points of investment behavior primarily include manufacturing, construction, and transport and communication in China, South Korea, Italy, and Russia. With the reduction of trade barriers, countries with a propensity to export, particularly those with resource scarcity, face trade-offs in export behavior (e.g., exports of crops, and food and tobacco from China, India and Pakistan). Notably, for certain resource-rich economies, such as Southeast Asia, Russia, and West Asia, improving the efficiency of relevant sectors, rather than restricting exports, is the priority. In bilateral trade, richer countries acquired both economic and resource advantages, whereas countries such as China, India, and Pakistan faced serious trade inequalities. Greener and more equitable WEF development in the BRI could be better promoted through strengthening dialogue and cooperation regarding supply and demand at these key points. • WEF nexus and trade inequality were analyzed to promote BRI's green development. • Key WEF efficiency improvement points in the BRI were identified on the supply side. • Important final demand behaviors in the BRI requiring macro-control were determined. • Unequal trade pairs related to resource costs and economic benefits were revealed. • Improved co-management of WEF between unequal trade pairs should be prioritized.