IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v17y2015i5p1209-1226.html
   My bibliography  Save this article

Econometric analysis of industrial water use efficiency in China

Author

Listed:
  • Jing Li
  • Xiao-can Ma

Abstract

Low industrial water use efficiency has become a resource bottleneck to industrial development in China. The SBM-undesirable and meta-frontier models were used in combination with empirical data in 30 provinces in mainland China (Tibet excluded due to data missing from 1999 to 2013), to compare industrial water use efficiency in mainland China under meta-frontier and group-frontier, and explore the influencing factors. The empirical results of the study reveal that: (a) there is a large difference in the industrial water use efficiency between meta-frontier and group-frontier in mainland China, due to the heterogeneity in the levels of industrial water use technology; (b) given the low recycle rate of polluted industrial water, there is room for improvement in the industrial water use efficiency in the 30 provinces in mainland China. Further, the study finds that the current price of industrial water is distorted to some extent, failing to coordinate with the use of water resources. Policy implications indicate that industrial water use efficiency is not only related to technological heterogeneity in different regions, but also the control and treatment of industrial water pollution. Therefore, the current price of industrial water should be gradually raised. A scalar water pricing system as residential water could also be applied to industrial water. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Jing Li & Xiao-can Ma, 2015. "Econometric analysis of industrial water use efficiency in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(5), pages 1209-1226, October.
    • Handle: RePEc:spr:endesu:v:17:y:2015:i:5:p:1209-1226
    DOI: 10.1007/s10668-014-9601-2
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10668-014-9601-2
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10668-014-9601-2?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. Shakhawat Chowdhury & Muhammad Al-Zahrani, 2014. "Fuzzy synthetic evaluation of treated wastewater reuse for agriculture," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 521-538, June.
    2. Romano, Giulia & Guerrini, Andrea, 2011. "Measuring and comparing the efficiency of water utility companies: A data envelopment analysis approach," Utilities Policy, Elsevier, vol. 19(3), pages 202-209.
    3. Coggins, Jay S. & Swinton, John R., 1996. "The Price of Pollution: A Dual Approach to Valuing SO2Allowances," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 58-72, January.
    4. Z. Malley & M. Taeb & T. Matsumoto & H. Takeya, 2008. "Linking perceived land and water resources degradation, scarcity and livelihood conflicts in southwestern Tanzania: implications for sustainable rural livelihood," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 10(3), pages 349-372, June.
    5. Dionysis Latinopoulos, 2009. "Multicriteria decision-making for efficient water and land resources allocation in irrigated agriculture," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(2), pages 329-343, April.
    6. Seema Bathla, 1999. "Water Resource Potential in Northern India: Constraints and Analyses of Price and Non-Price Solutions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 1(2), pages 105-121, June.
    7. George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
    8. Hu, Jin-Li & Wang, Shih-Chuan & Yeh, Fang-Yu, 2006. "Total-factor water efficiency of regions in China," Resources Policy, Elsevier, vol. 31(4), pages 217-230, December.
    9. Omar Rimawi & Anwar Jiries & Yasin Zubi & Ali El-Naqa, 2009. "Reuse of mining wastewater in agricultural activities in Jordan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(4), pages 695-703, August.
    10. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
    11. Dennis Mwanza, 2003. "Water for Sustainable Development in Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 5(1), pages 95-115, March.
    12. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    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. Long, Kaisheng & Pijanowski, Bryan C., 2017. "Is there a relationship between water scarcity and water use efficiency in China? A national decadal assessment across spatial scales," Land Use Policy, Elsevier, vol. 69(C), pages 502-511.
    2. Amer Ait Sidhoum, 2023. "Assessing the contribution of farmers’ working conditions to productive efficiency in the presence of uncertainty, a nonparametric approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8601-8622, August.
    3. Chenjun Zhang & Rui Hua & Zhen Shi & Yung‐ho Chiu & Shijiong Qin & Xinrui Sun, 2021. "Study on water resources consumption and environmental pollution of China's provinces under different economic development levels," Natural Resources Forum, Blackwell Publishing, vol. 45(3), pages 305-325, August.
    4. Ke-Liang Wang & Jianguo Wang & Jianming Wang & Lili Ding & Mingsong Zhao & Qunwei Wang, 2020. "Investigating the spatiotemporal differences and influencing factors of green water use efficiency of Yangtze River Economic Belt in China," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-24, April.

    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. A. Guerrini & G. Romano & L. Carosi & F. Mancuso, 2017. "Cost Savings in Wastewater Treatment Processes: the Role of Environmental and Operational Drivers," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2465-2478, June.
    2. M C A S Portela & E Thanassoulis & A Horncastle & T Maugg, 2011. "Productivity change in the water industry in England and Wales: application of the meta-Malmquist index," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(12), pages 2173-2188, December.
    3. Fang-Rong Ren & Ze Tian & Yu-Ting Shen & Yung-Ho Chiu & Tai-Yu Lin, 2019. "Energy, CO 2 , and AQI Efficiency and Improvement of the Yangtze River Economic Belt," Energies, MDPI, vol. 12(4), pages 1-17, February.
    4. Shih-Liang Chao & Chun-Wei Lai, 2019. "Comparing the efficiency of alliance members and independent liner carriers: a metafrontier analysis," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(2), pages 157-172, June.
    5. Wu, Pei-Ing & Chen, Chai Tzu & Liou, Je-Liang, 2013. "The meta-technology cost ratio: An indicator for judging the cost performance of CO2 reduction," Economic Modelling, Elsevier, vol. 35(C), pages 1-9.
    6. Yuyu Liu & Caizhi Sun & Shiguo Xu, 2013. "Eco-Efficiency Assessment of Water Systems in China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(14), pages 4927-4939, November.
    7. Delnava, Haleh & Khosravi, Ali & El Haj Assad, Mamdouh, 2023. "Metafrontier frameworks for estimating solar power efficiency in the United States using stochastic nonparametric envelopment of data (StoNED)," Renewable Energy, Elsevier, vol. 213(C), pages 195-204.
    8. Mergoni, Anna & D'Inverno, Giovanna & Carosi, Laura, 2022. "A composite indicator for measuring the environmental performance of water, wastewater, and solid waste utilities," Utilities Policy, Elsevier, vol. 74(C).
    9. Yu, Ming-Miin & Lin, Chung-I & Chen, Kuan-Chen & Chen, Li-Hsueh, 2021. "Measuring Taiwanese bank performance: A two-system dynamic network data envelopment analysis approach," Omega, Elsevier, vol. 98(C).
    10. Arturas Juodis, 2013. "Cointegration Testing in Panel VAR Models Under Partial Identification and Spatial Dependence," UvA-Econometrics Working Papers 13-08, Universiteit van Amsterdam, Dept. of Econometrics.
    11. Jessica M. Mc Lay & Roy Lay-Yee & Barry J. Milne & Peter Davis, 2015. "Regression-Style Models for Parameter Estimation in Dynamic Microsimulation: An Empirical Performance Assessment," International Journal of Microsimulation, International Microsimulation Association, vol. 8(2), pages 83-127.
    12. Carranza, Luis J. & Cayo, Juan M. & Galdon-Sanchez, Jose E., 2003. "Exchange rate volatility and economic performance in Peru: a firm level analysis," Emerging Markets Review, Elsevier, vol. 4(4), pages 472-496, December.
    13. In Choi & Sanghyun Jung, 2021. "Cross-sectional quasi-maximum likelihood and bias-corrected pooled least squares estimators for short dynamic panels," Empirical Economics, Springer, vol. 60(1), pages 177-203, January.
    14. Badau, Flavius & Färe, Rolf & Gopinath, Munisamy, 2016. "Global resilience to climate change: Examining global economic and environmental performance resulting from a global carbon dioxide market," Resource and Energy Economics, Elsevier, vol. 45(C), pages 46-64.
    15. Wirat Krasachat & Suthathip Yaisawarng, 2021. "Directional Distance Function Technical Efficiency of Chili Production in Thailand," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    16. Mohammad Ziaul Hoque & MD. Rabiul Islam & Mohammad Nurul Azam, 2013. "Board Committee Meetings and Firm Financial Performance: An Investigation of Australian Companies," International Review of Finance, International Review of Finance Ltd., vol. 13(4), pages 503-528, December.
    17. Tobias Hagen, 2010. "Effects of parliamentary elections on primary budget deficits in OECD countries - robustness of the results with regard to alternative econometric estimators," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 135-139, January.
    18. L-J Kao & C-C Lu & C-C Chiu, 2011. "The training institution efficiency of the semiconductor institute programme in Taiwan—application of spatiotemporal ICA with DEA approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(12), pages 2162-2172, December.
    19. Yongqi Feng & Haolin Zhang & Yung-ho Chiu & Tzu-Han Chang, 2021. "Innovation efficiency and the impact of the institutional quality: a cross-country analysis using the two-stage meta-frontier dynamic network DEA model," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(4), pages 3091-3129, April.
    20. Bongsuk Sung & Myoung Shik Choi & Woo-Yong Song, 2019. "Exploring the Effects of Government Policies on Economic Performance: Evidence Using Panel Data for Korean Renewable Energy Technology Firms," Sustainability, MDPI, vol. 11(8), pages 1-19, April.

    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:spr:endesu:v:17:y:2015:i:5:p:1209-1226. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.