The optimization of regional industrial structure under the water-energy constraint: A case study on Hebei Province in China

Abstract

Because of the rapid development of the economy, the shortages of water and energy in northern China have reached crisis levels. Solving the contradiction between economic development and resource constraint is a significant problem in China. Based on the 2000–2017 panel data of Hebei Province, a significant arid and semi-arid region in the north of China, this paper tries to create a valid path to resolve water-energy problems by calculating the growth driving factors of the industrial water-energy with LMDI Model, then plans the internal structure of the industrial sector through the linear programming model. The results show: (1) The seeking of the growth of gross domestic product (GDP) is the essential factor that promotes the increasing of water-energy crises; while, industrial sectors' structural adjustments will boost efficiency and performance of water and energy. (2) The primary industry in Hebei province plays the main key to energy conservation; meanwhile, reducing the proportion of crops with high water consumption is an excellent way to alleviate the shortage of water resources. (3) Manufacturing sectors’ structural adjustments, especially reducing the proportion of heavy industry sectors, will provide an essential means to foster water-energy efficiency; at the same time, increasing the proportion of tertiary industry can well balance the relationship between economic growth and water energy utilization. Finally, this paper provides a possible path for the optimization and adjustment of industrial-economic restructuring through emphasizing sustainable solutions of industrial-economic interactions under the situation of water-energy constraint in Hebei province.