Resources Science ›› 2017, Vol. 39 ›› Issue (6): 1117-1126.doi: 10.18402/resci.2017.06.11

• Orginal Article • Previous Articles     Next Articles

The relationship analysis between Chinese industrial water use and economic growth based on the Kuznets Curve

Yue ZHANG1(), Bolin PAN1, Jinbin LI2, Alun GU1()   

  1. 1. Institute of Energy,Environment and Economy,Tsinghua University,Beijing 100084,China
    2. Energy Evaluation Department,714 Research Institute,China Shipbuilding Industry Corporation,Beijing 100012,China
  • Received:2017-02-10 Revised:2017-03-05 Online:2017-06-20 Published:2017-06-20

Abstract:

Global inequity and unbalanced water resources have been critical issues for many years. Chinese water resources per capita are only 1/4 of the global average. As the Chinese economy grows rapidly,the demands for Chinese industrial water are increasing. It is therefore important to balance the relationship between economic growth and industrial water use. To make industrial water use decisions economically,we divided China into eight economic areas and based on a reduced form model verified the industrial Kuznets Curve in different areas. We used water use per capita and GDP per capita of the eight economic areas from 2002 to 2014 and applied unit root tests and co-integration tests and curve fitting. The result indicates that the trend in Chinese industrial water use fits the Kuznets Curve,and that industrial water use per capita and GDP per capita show an inverted U type relationship. The different economic areas have different turning points due to different levels of technological development and industrial structure. A study of industrial water use trends has much meaning for co-integrating economic development and industrial water use. The government should try to achieve an earlier turning point in the Kuznets Curve by optimizing industrial structure,increasing water-use efficiency and developing advanced technologies.

Key words: Environmental Kuznets Curve, industrial water use, economic growth, reduced form model, China