Water-Saving Efficiency and Inequality of Virtual Water Trade in China

Abstract

Virtual water trade is widely considered as a potential method to solve local water shortage and unequal distribution. However, limited research investigated water-saving efficiency and water inequality of inter-provincial virtual water trade. In this study, we sought to explore this issue within China based on the 2015 input-output data. A multi-regional input-output model and a modified input-output model were used to estimate the virtual water trade and its impact on water-saving and water inequality. Our results suggest that: (1) The total virtual water flow across the country is 200.03 × 109 m3, which accounts for 32.77% of water withdrawal. The agriculture sector contributes the highest proportion (73.99%) to virtual water flow. (2) Virtual water trade could decrease water withdrawal by 446.08 × 109 m3 compared with withdrawal under no-trade situation at a national level, and 22 provinces could gain benefits through inter-provincial trade with a positive water-saving efficiency index. (3) Virtual water trade also causes water inequality, which exacerbates water scarcity of exported provinces, especially in northwest provinces. (4) There is a conflict between water conservation and water inequality, but different provinces show significant heterogeneity.