Assessment of Regional Trade and Virtual Water Flows in China

Guan, D. & Hubacek, K. (2006). Assessment of Regional Trade and Virtual Water Flows in China. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-06-003

Preview

Text IR-06-003.pdf Download (256kB) | Preview

Abstract

The success of Chinas economic development has left deep marks on resource availability and quality. Some regions in China are relatively poor with regards to water resources. This problem is exacerbated by economic growth. Flourishing trade activities on both domestic and international levels have resulted in significant amounts of water withdrawal and water pollution. Hence the goal of this paper is to evaluate the current inter-regional trade structure and its effects on water consumption and pollution via virtual water flows. Virtual water is the water embedded in products and used in the whole production chain, and that is traded between regions or exported to other countries. For this assessment of trade flows and effects on water resources, we have developed an extended regional input-output model for eight hydro-economic regions in China to account for virtual water flows between North and South China. The findings show that the current trade structure in China is not very favorable with regards to water resource allocation and efficiency. North China as a water-scarce region virtually exports about 5% of its total available freshwater resources while accepting generation of large amounts of wastewater in producing exports for other regions' consumption. By contrast, South China - a region with abundant water resources - is importing virtual water from other regions while these imports are creating wastewater polluting other regions' aquatic-ecosystems.

Actions (login required)

View Item