Linkage analysis for water-energy-economic system efficiency in China

Zhong Fang (), Yung-ho Chiu (), Yiqin Chen (), Tai-Yu Lin () and Tzu-Han Chang ()
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Zhong Fang: Xiamen Institute of Technology
Yung-ho Chiu: Soochow University
Yiqin Chen: Fujian Normal University
Tai-Yu Lin: National Cheng Kung University
Tzu-Han Chang: Soochow University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 6, No 16, 12745-12767

Abstract: Abstract Exploring the intricate relationship and driving mechanisms between water resources and energy systems is crucial for sustainable economic growth. While many empirical studies have examined the interdependence and resource utilization efficiency of hydropower, there remains a paucity of research delving into the complex coupling and coordination among the water-energy-economy systems during societal development. Given China’s uneven hydropower resource distribution and autonomous policy-making, this study conceptualizes the water-energy-economy as an interconnected system. Utilizing a parallel two-stage undesirable dynamic DDF model, the research investigates the regional water-energy coupling and assesses the impact of water energy consumption on both the economy and input–output efficiency. The findings indicate a stable comprehensive efficiency within China's water-energy-economic system, with a spatial hierarchy of East > West > Central > Northeast. The first stage reveals a symbiotic yet competitive relationship between the water resources and energy subsystems, with the energy subsystem typically exhibiting higher efficiency. The second stage demonstrates a year-over-year decline in the efficiency of the water-energy-economic system. Spatially, differences in the efficiency correlation characteristics are evident between the two systems. Consequently, this research advocates for enhanced management policies in water-energy coupling, urging the adoption of locally tailored resource allocation strategies. This approach aims to foster synergistic advancements in cross-sectoral water conservation and energy savings, leveraging a symbiotic association pathway. The empirical findings presented here offer valuable insights for policymakers to foster cross-sectoral synergistic cooperation and achieve sustainable economic development in water and energy sectors.

Keywords: Water resources; Energy; DDF; Dynamic efficiency (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-023-04409-0

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