Exploring Virtual Water Network Dynamics of China’s Electricity Trade: Insights into the Energy–Water Nexus

Hang Lei, Xin Zhang () and Xinyi Han
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Hang Lei: College of Water Resources and Architectural Engineering, The Northwest A&F University, Yangling 712100, China
Xin Zhang: College of Water Resources and Architectural Engineering, The Northwest A&F University, Yangling 712100, China
Xinyi Han: College of Water Resources and Architectural Engineering, The Northwest A&F University, Yangling 712100, China

Sustainability, 2023, vol. 15, issue 22, 1-21

Abstract: The escalating challenges regarding the sustainable utilization of coupled energy and water resources require the implementation of synergistic management. Electricity-related virtual water flows could result in the transfer of freshwater vulnerability and environmental inequalities. Aiming to systematically characterize its holistic patterns, network structure and formation mechanisms, we constructed a virtual water network for electricity trade in China based on provincial lifecycle water footprints; portrayed the statistical features, structural stability and interregional equilibrium using Complex Network Analysis (CNA); and introduced the Quadratic Assignment Procedure (QAP) to gain socio-environmental insights into the driving factors. The results show that the virtual water transferred with China’s interprovincial electricity trade increased from 851.24 million m 3 to 3441.58 million m 3 from 2006–2020. Eastern, developed provinces with a high electricity demand have effectively relieved their water stress by expanding import sources, but the transfer of water resource benefits from western exporting regions (especially in the arid northern provinces) is irreversible. The current electricity market forces reflect the scarcity of energy and capital factors in the context of China’s interprovincial trade, but not the scarcity of water resources. Consequently, we proposed integrated management strategies including strengthening sectoral collaboration, optimizing energy-use structures and establishing ecological compensation mechanisms to build a more water-efficient future power system.

Keywords: virtual water; electricity trade; energy–water nexus; complex network analysis; quadratic assignment procedure (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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