Priority in Energy-water Nexus Based on Input-output Analysis: A Case Study of China

Abstract

Energy shortage and water crisis are increasingly becoming the major constraints for sustainability. The energy-water nexus management are facing the problems how to prioritize the energy saving or water saving issues for socio-economic production and consumption process. This study built the framework to assess the nexus priority issues to identify the regional critical nexus issues and critical inter-regional trade pathway for nexus management. Here, the priority for energy-water nexus means energy-saving or water saving who should be put ahead or who is more important aspect for nexus management. Using the input-output analysis (IOA), we analyzed the embodied EW flows and regional consumption behaviors from production perspective. Combining the regional energy/water (EW) consumption and EW resource endowment, we built the EW stress index to compare the EW crisis and identify the resource saving aspect priority considering the bilateral EW resource endowment. The results showed that embodied EW transfer did not bring significant change to the local resource stress index. North China should serve as consumers while South China as suppliers according to the water priority degree distribution. East and Central China with lower energy priority degree easily get local energy outflowed which is a severe challenge for local energy resource system. By prioritizing the EW regions and regional trade, we aim to provide the detail strategy and guidance for nexus management.