Is virtual water trade beneficial for the water-deficient regions? New evidences from the Yellow River Basin, China

Abstract

Study region: The Yellow River Basin (a water-deficient region) in China. Study focus: To establish whether the virtual water trade (VWT) is beneficial for water-deficient regions we conducted an integrated assessment of the local and distant VWT of the Yellow River Basin (YRB). We adopted a modified input–output analysis model and applied multiregional input–output tables of 31 provinces in China (2017) to estimate the dependence of the YRB on water from other regions and to determine the VWT status. We calculated the total water consumption coefficient of 29 sectors in the YRB, investigated the water-use intensity of various sectors, and analyzed the water footprint and per capita usage of each province. Furthermore, we revealed the VWT among downstream, midstream, and upstream regions of the YRB. New hydrological insights for the region: This study revealed that virtual water flow is unidirectional from downstream and midstream regions to upstream regions, and that the trade structures among these three regions of the YRB differ notably, which has rarely been addressed in previous literature. Furthermore, the VWT exacerbates water resource shortages in the YRB. The irrational industrial structure is the main reason for the need for transfer of water resources. This information could inform the development of effective policies both for alleviating regional water shortages and for developing a viable virtual water strategy for the YRB.

Keywords

• Input–output analysis
• Virtual water trade
• Water footprint
• Yellow River Basin
• Water scarcity
• Water resource management