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China's Inter-regional Trade of Virtual Water: a Multi-regional Input-output Modeling

Author

Listed:
  • Xueting Zhao

    () (Regional Research Institute, West Virginia University)

Abstract

This study focuses on the measure of inter-regional trade of virtual water, defined as the freshwater consumed for producing traded goods and services, to explain the relationship between China’s regional virtual water and the increasing water demand. By using the multi-regional input-output (MRIO) tables of 2002 and 2007 with the regional sectoral water use, this study analyzes virtual water in trade, domestic trade in virtual water, and the regional trade balance of virtual water. The results show that: (1) water use efficiency has increased in China; (2) the major source of the regional virtual water in trade are domestic inter-regional trade; and (3) a region’s virtual water depends on its water resources availability, economic structure, as well as the region’s position in domestic supply chain.

Suggested Citation

  • Xueting Zhao, 2014. "China's Inter-regional Trade of Virtual Water: a Multi-regional Input-output Modeling," Working Papers Working Paper 2014-04, Regional Research Institute, West Virginia University.
  • Handle: RePEc:rri:wpaper:2014wp04
    as

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    File URL: http://rri.wvu.edu/wp-content/uploads/2014/12/Zhao_2014-04_Chinas-Interregional-Trade1.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    virtual water; multi-regional input-output(MRO)model; China;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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