Domestic outsourcing characteristics and driving forces of the virtual water trade in Zhejiang Province, eastern China

Xiaojun Deng, Yali Huang, Jing Zou and Zhangqi Zhong ()
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Xiaojun Deng: Zhejiang University of Finance and Economics
Yali Huang: Zhejiang University of Finance and Economics
Jing Zou: Zhejiang University of Finance and Economics
Zhangqi Zhong: Guangdong University of Foreign Studies

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 2, No 81, 4885 pages

Abstract: Abstract Based on China’s multiregional input–output (MRIO) tables from 2002 to 2015, this study estimates virtual water trade (VWT) between Zhejiang and 29 other municipalities, provinces, and autonomous regions in China with a quantitative analysis of the spatial–temporal patterns and the driving forces of VWT in Zhejiang from the short-distance and the long-distance perspectives. The result shows that Zhejiang turns from supplier to consumer in short-distance VWT during 2002–2015. VW import mainly comes from Jiangsu, Anhui, and Jiangxi, while Shanghai is the most important region for short-distance VW export. Secondary industry is the dominant industry in short-distance VW export. Moreover, short-distance VW import is gradually transferred from primary industry to secondary industry. Meanwhile, Zhejiang always acts as a VW consumer in long-distance VWT transportation. Xinjiang and Heilongjiang are the main import regions, while Guangdong and Henan are the main export regions. Primary industry accounts for the largest share of VW long-distance import. VW long-distance export is dominated by secondary industry. In addition, the influence of GDP per capita (PGDP), urbanization level (UL), and urban population (UP) on VWT is positive. The influence of external dependence of water resources (EDW), water use efficiency (WUE), and industrial structure (IS) is negative. Both short-distance and long-distance VW imports are dominated by EDW. UL and PGDP are the main drivers of short-distance and long-distance VW exports. In order to increase the capacity of water resources allocation and to improve the benefits of water resources utilization, virtual water strategy (VWS) should be implemented with differentiated measures based on the comparative advantages of short-distance and long-distance VWTs in Zhejiang.

Keywords: Virtual water trade (VWT); Domestic outsourcing characteristics; Driving forces; Logarithmic mean divisia index (LMDI); Zhejiang Province (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-023-02913-x

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