Water Use in China’s Domestic, Industrial and Agricultural Sectors: An Empirical Analysis

Yuan Zhou and Richard Tol

No FNU-67, Working Papers from Research unit Sustainability and Global Change, Hamburg University

Abstract: Demand management plays an increasingly important role in dealing with water scarcity in China. It is important to understand the level and pattern of water use in various sectors across the regions for any measures being put into effect. The aim of this study is to enhance the understanding of the factors that influence water demand by examining closely the water use in domestic, industrial and agricultural sectors. Using province level panel data from 1997 to 2003, the examination shows that the regional disparity in the level and pattern of water uses is considerable. The estimation of water demand shows that both economic and climatic variables have significant effects on water demand. The results suggest an income elasticity of 0.42 for the domestic sector, an output elasticity of -0.32 for industrial water use (per unit of output), and an output elasticity of –0.24 for irrigated agriculture (per land area).

Keywords: water use; regional variation; elasticity; demand management (search for similar items in EconPapers)
JEL-codes: L95 Q25 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2005-06, Revised 2005-06
New Economics Papers: this item is included in nep-agr and nep-cna
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published, Water Science and Technoloy: Water Supply, 5 (6), 85-93

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