Quantifying virtual water scarcity risk transfers of energy system in China

Xuebing Yao, Xu Tang (), Arash Farnoosh and Cuiyang Feng
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Xuebing Yao: China University of Petroleum
Xu Tang: China University of Petroleum
Arash Farnoosh: IFP Energies Nouvelles, IFP School
Cuiyang Feng: Beijing Normal University

Environmental Economics and Policy Studies, 2021, vol. 23, issue 4, No 12, 945-969

Abstract: Abstract Water scarcity problem has become a major constraint in energy development. In this paper, we calculated virtual water flows and virtual water scarcity risk transfers driven by interprovincial energy consumption in China using multi-regional input–output analysis. The results of virtual water scarcity risk transfers show that major virtual water scarcity risk importers will be the “victims” suffering the consequences of increasing virtual water scarcity risks in the national energy system. For major virtual water scarcity risk exporters, they will transfer virtual water scarcity risks to downstream provinces along energy supply chains, threatening the stability of the national energy system. The promotion of energy policies and the energy consumption of developed regions make the water-deficient northwest regions export a large amount of water resources to the east and south regions. Therefore, it is necessary to fully consider local water scarcity and evaluate the impact on water environment before the construction of energy bases. Our findings can be used to provide a reference value for policymakers to develop new energy strategies and manage water resources sustainably.

Keywords: Virtual water scarcity risk; Water footprint; Energy consumption; Multi-regional input–output analysis (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10018-021-00308-8

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