Accounting for virtual scarce water facilitates and improves the analysis of virtual water, and facilitates comparisons between water use embodied in products from regions with different water resource conditions. However, previous virtual scarce water models were inadequate for the analysis of both water quantity and quality, and only provided a rough estimate. To address this problem, we proposed a modification of this model. In the revised model, we determined the scarcity induced by inadequate water quality by analyzing the availability of suitable quality water for specific sectors (residential, industrial, agricultural, and environmental) rather than focusing on a single sector (usually environmental). Additionally, the revised model evaluated scarcity from water quantity by considering clean water technologies and environmental flow demand. This comprehensive scarcity measure is then incorporated into an input–output model to determine virtual scarce water. We used two typical Chinese river basins (the Hai River and Pearl River basins) with different water endowments to evaluate the model. We found that in the water-scarcity region the virtual scarce water was more strongly affected by water quality and clean water technologies, whereas in the water-rich region it was more strongly affected by the environmental flow demand. These findings underscored the need for more targeted economic and environmental policies for different regions. Water-scarcity regions should prioritize the promotion of clean water technologies and contaminant mitigation techniques, while water-rich regions should pay more attention to ensuring the environmental flow demand.
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