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An Empirical Study of the Impact of Urbanization on Industry Water Footprint in China

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  • Daxue Kan

    (School of Economics and Trade, Nanchang Institute of Technology, No.289 Tianxiang Road, Nanchang 330099, China)

  • Weichiao Huang

    (Department of Economics, Western Michigan University, 1903 W. Michigan Ave., Kalamazoo, MI 49008-5330, USA
    Specially appointed professor, City College, Wuhan University of Science and Technology, No.947 Heping Avenue, Wuhan 430081, China)

Abstract

How to advance new urbanization initiatives and reduce the water footprint of industries is one urgent issue about urbanization that needs to be resolved. Based on spatial dynamic panel data, we used the system GMM (Generalized Method of Moments) to study the impact of urbanization on the industrial water footprint. The results show that, overall, urbanization increases the industrial water footprint, industrial virtual water footprint, and industrial gray water footprint in China. There are sectoral and regional differences in the impact of urbanization. Specifically, urbanization reduces the agricultural water footprint and agricultural virtual water footprint but raises the agricultural gray water footprint. Urbanization increases the manufacturing water footprint, manufacturing virtual water footprint, and gray water footprint. Urbanization reduces the virtual water footprint of the service industry but increases the water footprint and gray water footprint in the service industry. At the regional level, urbanization increases the industrial water footprint and gray water footprint across the three major regions. In the eastern region, urbanization has little effect on increasing the industrial water footprint, and reduces the industrial virtual water footprint, whereas in the central and western regions urbanization increases the industrial virtual water footprint. In all three regions, urbanization reduces the agricultural water footprint, increases the manufacturing and service water footprints, reduces the virtual water footprints of agriculture and services, and increases the gray water footprint of agriculture, manufacturing, and services. In the eastern region, the reducing effect of urbanization is the greatest and the increasing effect of urbanization is the smallest. Additionally, in the eastern region, urbanization has reduced the virtual water footprint of manufacturing, whereas in the central and western regions urbanization has increased the virtual water footprint of manufacturing.

Suggested Citation

  • Daxue Kan & Weichiao Huang, 2020. "An Empirical Study of the Impact of Urbanization on Industry Water Footprint in China," Sustainability, MDPI, vol. 12(6), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2263-:d:332357
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    References listed on IDEAS

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    Cited by:

    1. Daxue Kan & Wenqing Yao & Lianju Lyu & Weichiao Huang, 2022. "Temporal and Spatial Difference Analysis and Impact Factors of Water Ecological Civilization Level: Evidence from Jiangxi Province, China," Land, MDPI, vol. 11(9), pages 1-19, September.
    2. Jian Chang & Wanhua Li & Yaodong Zhou & Peng Zhang & Hengxin Zhang, 2022. "Impact of Public Service Quality on the Efficiency of the Water Industry: Evidence from 147 Cities in China," Sustainability, MDPI, vol. 14(22), pages 1-17, November.

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