IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v268y2020ics0306261920304864.html
   My bibliography  Save this article

Water-energy scarcity nexus risk in the national trade system based on multiregional input-output and network environ analyses

Author

Listed:
  • Liu, Yating
  • Chen, Bin

Abstract

The risk of economic loss caused by water and energy scarcity can be transferred via economic trading activities. In this study, a network-based framework was proposed to assess the water/energy scarcity risk nexus in a national trade system based on the multiregional input–output analysis (MRIOA) and the information-based network environ analysis (NEA). The initial risk of water and energy scarcity for different sectors in each province was first estimated based on the regional water stress index (WSI), energy stress index (ESI), and water and energy consumption intensity. The initial risk of water-energy scarcity nexus was also accounted for by combining the intensity-based weighting schemes. Additionally, information-based NEA technique was applied to ascertain the distributed control relationships in the currency flow networks of the MRIO table. Then, the integral water scarcity risk transmission network, the integral energy scarcity risk transmission network and the integral water-energy scarcity nexus risk transmission network can be established via combining the corresponding initial risk and the control allocation matrix. Finally, a case study was conducted in China to quantify the propagation of water-energy scarcity risk among different regions and sectors, which considers both direct risk and integral risk, in the national trade system. The results showed that there are significant differences between the initial risk and integral risk of water-energy scarcity due to indirect effects and amplification effects in the network. Moreover, this study highlights that economic trade could transfer local water/energy scarcity to distant regions in the national economic system, i.e., local water/energy scarcity could not only cause economic loss locally or in adjacent regions, but also have tele-connected influences over geographically distant regions via the national supply chain. Hence, the economic incentives for local water or energy system management are increasingly inadequate compared with the needs of a resilient economy. The proposed water-energy scarcity risk nexus assessment framework can provide a network-based insight for identifying vulnerable provinces and sectors of water and energy scarcity to strengthen the resilience of the national economy and boost the synergies of water and energy management.

Suggested Citation

  • Liu, Yating & Chen, Bin, 2020. "Water-energy scarcity nexus risk in the national trade system based on multiregional input-output and network environ analyses," Applied Energy, Elsevier, vol. 268(C).
    • Handle: RePEc:eee:appene:v:268:y:2020:i:c:s0306261920304864
    DOI: 10.1016/j.apenergy.2020.114974
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920304864
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2020.114974?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tobor-Kapłon, Maria A. & Holtkamp, Remko & Scharler, Ursula M. & Doroszuk, Agnieszka & Kuenen, Frans J.A. & Bloem, Jaap & de Ruiter, Peter C., 2007. "Evaluation of information indices as indicators of environmental stress in terrestrial soils," Ecological Modelling, Elsevier, vol. 208(1), pages 80-90.
    2. Ana Serrano & Dabo Guan & Rosa Duarte & Jouni Paavola, 2016. "Virtual Water Flows in the EU27: A Consumption-based Approach," Journal of Industrial Ecology, Yale University, vol. 20(3), pages 547-558, June.
    3. Wiedmann, Thomas, 2009. "A first empirical comparison of energy Footprints embodied in trade -- MRIO versus PLUM," Ecological Economics, Elsevier, vol. 68(7), pages 1975-1990, May.
    4. Meng, Jing & Zhang, Zengkai & Mi, Zhifu & Anadon, Laura Diaz & Zheng, Heran & Zhang, Bo & Shan, Yuli & Guan, Dabo, 2018. "The role of intermediate trade in the change of carbon flows within China," Energy Economics, Elsevier, vol. 76(C), pages 303-312.
    5. van den Bergh, Jeroen C. J. M. & Verbruggen, Harmen, 1999. "Spatial sustainability, trade and indicators: an evaluation of the 'ecological footprint'," Ecological Economics, Elsevier, vol. 29(1), pages 61-72, April.
    6. Rijsberman, Frank R., 2006. "Water scarcity: Fact or fiction?," Agricultural Water Management, Elsevier, vol. 80(1-3), pages 5-22, February.
    7. Li, Zheng & Pan, Lingying & Fu, Feng & Liu, Pei & Ma, Linwei & Amorelli, Angelo, 2014. "China's regional disparities in energy consumption: An input–output analysis," Energy, Elsevier, vol. 78(C), pages 426-438.
    8. Yang, Jin & Chen, Bin, 2016. "Energy–water nexus of wind power generation systems," Applied Energy, Elsevier, vol. 169(C), pages 1-13.
    9. Lenzen, Manfred & Moran, Daniel & Bhaduri, Anik & Kanemoto, Keiichiro & Bekchanov, Maksud & Geschke, Arne & Foran, Barney, 2013. "International trade of scarce water," Ecological Economics, Elsevier, vol. 94(C), pages 78-85.
    10. Arjen Y. Hoekstra, 2014. "Water scarcity challenges to business," Nature Climate Change, Nature, vol. 4(5), pages 318-320, May.
    11. Chen, Shaoqing & Chen, Bin & Fath, Brian D., 2015. "Assessing the cumulative environmental impact of hydropower construction on river systems based on energy network model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 78-92.
    12. Wang, Saige & Liu, Yating & Chen, Bin, 2018. "Multiregional input–output and ecological network analyses for regional energy–water nexus within China," Applied Energy, Elsevier, vol. 227(C), pages 353-364.
    13. Zhifu Mi & Jing Meng & Dabo Guan & Yuli Shan & Malin Song & Yi-Ming Wei & Zhu Liu & Klaus Hubacek, 2017. "Chinese CO2 emission flows have reversed since the global financial crisis," Nature Communications, Nature, vol. 8(1), pages 1-10, December.
    14. Uri, Noel D., 1995. "A reconsideration of effect of energy scarcity on economic growth," Energy, Elsevier, vol. 20(1), pages 1-12.
    15. White, David J. & Feng, Kuishuang & Sun, Laixiang & Hubacek, Klaus, 2015. "A hydro-economic MRIO analysis of the Haihe River Basin's water footprint and water stress," Ecological Modelling, Elsevier, vol. 318(C), pages 157-167.
    16. Hewings, Geoffrey J.D. & Jensen, Rodney C., 1987. "Regional, interregional and multiregional input-output analysis," Handbook of Regional and Urban Economics, in: P. Nijkamp (ed.), Handbook of Regional and Urban Economics, edition 1, volume 1, chapter 8, pages 295-355, Elsevier.
    17. Zhang, Chao & Anadon, Laura Diaz, 2014. "A multi-regional input–output analysis of domestic virtual water trade and provincial water footprint in China," Ecological Economics, Elsevier, vol. 100(C), pages 159-172.
    18. Chen, Shaoqing & Chen, Bin & Fath, Brian D., 2013. "Ecological risk assessment on the system scale: A review of state-of-the-art models and future perspectives," Ecological Modelling, Elsevier, vol. 250(C), pages 25-33.
    19. C. J. Vörösmarty & P. B. McIntyre & M. O. Gessner & D. Dudgeon & A. Prusevich & P. Green & S. Glidden & S. E. Bunn & C. A. Sullivan & C. Reidy Liermann & P. M. Davies, 2010. "Global threats to human water security and river biodiversity," Nature, Nature, vol. 467(7315), pages 555-561, September.
    20. Chen, Shaoqing & Chen, Bin, 2016. "Urban energy–water nexus: A network perspective," Applied Energy, Elsevier, vol. 184(C), pages 905-914.
    21. Chen, Shaoqing & Chen, Bin, 2015. "Urban energy consumption: Different insights from energy flow analysis, input–output analysis and ecological network analysis," Applied Energy, Elsevier, vol. 138(C), pages 99-107.
    22. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yan, Xia & Jie, Wu & Minjun, Shi & Shouyang, Wang & Zhuoying, Zhang, 2022. "China's regional imbalance in electricity demand, power and water pricing - From the perspective of electricity-related virtual water transmission," Energy, Elsevier, vol. 257(C).
    2. Zhang, Wei & Valencia, Andrea & Gu, Lixing & Zheng, Qipeng P. & Chang, Ni-Bin, 2020. "Integrating emerging and existing renewable energy technologies into a community-scale microgrid in an energy-water nexus for resilience improvement," Applied Energy, Elsevier, vol. 279(C).
    3. Schlör, Holger & Venghaus, Sandra, 2022. "Measuring resilience in the food-energy-water nexus based on ethical values and trade relations," Applied Energy, Elsevier, vol. 323(C).
    4. Yongyu Qu & Hongzhen Ni & Jing Zhao & Genfa Chen & Changshun Liu, 2022. "Quantitative Analysis of the Impact of Ecological Industry and Ecological Investment on the Economy: A Case Study of Beijing, China," Sustainability, MDPI, vol. 14(16), pages 1-19, August.
    5. Ruijin Du & Qi Wu & Ziwei Nan & Gaogao Dong & Lixin Tian & Feifan Wu, 2022. "Natural Gas Scarcity Risk in the Belt and Road Economies Based on Complex Network and Multi-Regional Input-Output Analysis," Mathematics, MDPI, vol. 10(5), pages 1-16, March.
    6. Ana Luiza Fontenelle & Erik Nilsson & Ieda Geriberto Hidalgo & Cintia B. Uvo & Drielli Peyerl, 2022. "Temporal Understanding of the Water–Energy Nexus: A Literature Review," Energies, MDPI, vol. 15(8), pages 1-21, April.
    7. Araya, Natalia & Ramírez, Yendery & Cisternas, Luis A. & Kraslawski, Andrzej, 2021. "Use of real options to enhance water-energy nexus in mine tailings management," Applied Energy, Elsevier, vol. 303(C).
    8. Xia, Chuyu & Chen, Bin, 2020. "Urban land-carbon nexus based on ecological network analysis," Applied Energy, Elsevier, vol. 276(C).
    9. Yuchen Pan & Li Ma & Hong Tang & Yiwen Wu & Zhongjian Yang, 2021. "Land Use Transitions under Rapid Urbanization in Chengdu-Chongqing Region: A Perspective of Coupling Water and Land Resources," Land, MDPI, vol. 10(8), pages 1-21, August.
    10. Lu, Jingzhao & Lu, Hongwei & Wang, Weipeng & Feng, SanSan & Lei, Kaiwen, 2021. "Ecological risk assessment of heavy metal contamination of mining area soil based on land type changes: An information network environ analysis," Ecological Modelling, Elsevier, vol. 455(C).
    11. Zhang, Kai & Zhang, Yiyi & Xi, Shan & Liu, Jiefeng & Li, Jiashuo & Hou, Shengren & Chen, Bin, 2022. "Multi-objective optimization of energy-water nexus from spatial resource reallocation perspective in China," Applied Energy, Elsevier, vol. 314(C).
    12. Zhang, Jinbo & Liu, Lirong & Xie, Yulei & Han, Dengcheng & Zhang, Yang & Li, Zheng & Guo, Huaicheng, 2023. "Revealing the impact of an energy–water–carbon nexus–based joint tax management policy on the environ-economic system," Applied Energy, Elsevier, vol. 331(C).
    13. Aries Purwanto & Janez Sušnik & Franciscus X. Suryadi & Charlotte de Fraiture, 2021. "Water-Energy-Food Nexus: Critical Review, Practical Applications, and Prospects for Future Research," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    14. Hossein Azadi & Guy Robinson & Ali Akbar Barati & Imaneh Goli & Saghi Movahhed Moghaddam & Narges Siamian & Rando Värnik & Rong Tan & Kristina Janečková, 2023. "Smart Land Governance: Towards a Conceptual Framework," Land, MDPI, vol. 12(3), pages 1-20, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sun, Xudong & Li, Jiashuo & Qiao, Han & Zhang, Bo, 2017. "Energy implications of China's regional development: New insights from multi-regional input-output analysis," Applied Energy, Elsevier, vol. 196(C), pages 118-131.
    2. Guiliang Tian & Xiaosheng Han & Chen Zhang & Jiaojiao Li & Jining Liu, 2020. "Virtual Water Flows Embodied in International and Interprovincial Trade of Yellow River Basin: A Multiregional Input-Output Analysis," Sustainability, MDPI, vol. 12(3), pages 1-21, February.
    3. Liu, Yitong & Chen, Bin & Wei, Wendong & Shao, Ling & Li, Zhi & Jiang, Weizhong & Chen, Guoqian, 2020. "Global water use associated with energy supply, demand and international trade of China," Applied Energy, Elsevier, vol. 257(C).
    4. Wang, Saige & Liu, Yating & Chen, Bin, 2018. "Multiregional input–output and ecological network analyses for regional energy–water nexus within China," Applied Energy, Elsevier, vol. 227(C), pages 353-364.
    5. Duan, Cuncun & Chen, Bin, 2020. "Driving factors of water-energy nexus in China," Applied Energy, Elsevier, vol. 257(C).
    6. Duan, Cuncun & Chen, Bin, 2017. "Energy–water nexus of international energy trade of China," Applied Energy, Elsevier, vol. 194(C), pages 725-734.
    7. Xuebing Yao & Xu Tang & Arash Farnoosh & Cuiyang Feng, 2021. "Quantifying virtual water scarcity risk transfers of energy system in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 945-969, October.
    8. Wang, Saige & Cao, Tao & Chen, Bin, 2021. "Identifying critical sectors and supply chain paths for virtual water and energy-related water trade in China," Applied Energy, Elsevier, vol. 299(C).
    9. Borrett, Stuart R. & Sheble, Laura & Moody, James & Anway, Evan C., 2018. "Bibliometric review of ecological network analysis: 2010–2016," Ecological Modelling, Elsevier, vol. 382(C), pages 63-82.
    10. Chen, Shaoqing & Chen, Bin, 2017. "Coupling of carbon and energy flows in cities: A meta-analysis and nexus modelling," Applied Energy, Elsevier, vol. 194(C), pages 774-783.
    11. Yang, Jin & Chen, Bin, 2016. "Energy–water nexus of wind power generation systems," Applied Energy, Elsevier, vol. 169(C), pages 1-13.
    12. Jonas Bunsen & Matthias Finkbeiner, 2022. "An Introductory Review of Input-Output Analysis in Sustainability Sciences Including Potential Implications of Aggregation," Sustainability, MDPI, vol. 15(1), pages 1-24, December.
    13. Wang, Saige & Chen, Bin, 2016. "Energy–water nexus of urban agglomeration based on multiregional input–output tables and ecological network analysis: A case study of the Beijing–Tianjin–Hebei region," Applied Energy, Elsevier, vol. 178(C), pages 773-783.
    14. Gino Sturla & Lorenzo Ciulla & Benedetto Rocchi, 2022. "Italy's Volumetric, Scarce and Social-scarce water footprint: a Hydro Economic Input-Output Analysis," Working Papers - Economics wp2022_17.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    15. Li, Y.L. & Chen, B. & Chen, G.Q., 2020. "Carbon network embodied in international trade: Global structural evolution and its policy implications," Energy Policy, Elsevier, vol. 139(C).
    16. Hao, Yan & Zhang, Menghui & Zhang, Yan & Fu, Chenling & Lu, Zhongming, 2018. "Multi-scale analysis of the energy metabolic processes in the Beijing–Tianjin–Hebei (Jing-Jin-Ji) urban agglomeration," Ecological Modelling, Elsevier, vol. 369(C), pages 66-76.
    17. Wang, Saige & Fath, Brian & Chen, Bin, 2019. "Energy–water nexus under energy mix scenarios using input–output and ecological network analyses," Applied Energy, Elsevier, vol. 233, pages 827-839.
    18. Cai, Jialiang & Yin, He & Varis, Olli, 2016. "Impacts of industrial transition on water use intensity and energy-related carbon intensity in China: A spatio-temporal analysis during 2003–2012," Applied Energy, Elsevier, vol. 183(C), pages 1112-1122.
    19. Yang, Siyuan & Fath, Brian & Chen, Bin, 2016. "Ecological network analysis of embodied particulate matter 2.5 – A case study of Beijing," Applied Energy, Elsevier, vol. 184(C), pages 882-888.
    20. Yinwen Huang & Dechun Huang, 2023. "Decoupling Economic Growth from Embodied Water–Energy–Food Consumption Based on a Modified MRIO Model: A Case Study of the Yangtze River Delta Region in China," Sustainability, MDPI, vol. 15(14), pages 1-21, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:268:y:2020:i:c:s0306261920304864. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.