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Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
Contents
lists
available
at
ScienceDirect
Resources,
Conservation
and
Recycling
jo
ur
nal
home
p
age:
www.elsevier.com/locate/resconrec
Full
length
article
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012
Weiming
Chena,b,
Sanmang
Wua,b,∗,
Yalin
Leia,b,
Shantong
Lic
aSchool
of
Humanities
and
Economic
Management,
China
University
of
Geosciences,
Beijing
100083,
China
bKey
Laboratory
of
Carrying
Capacity
Assessment
for
Resource
and
Environment,
Ministry
of
Land
and
Resource,
Beijing
100083,
China
cDevelopment
Research
Center
of
State
Council,
Beijing
100010,
China
a
r
t
i
c
l
e
i
n
f
o
Article
history:
Received
7
December
2016
Received
in
revised
form
18
February
2017
Accepted
24
February
2017
Available
online
xxx
Keywords:
Water
scarcity
Net
exporter
Virtual
water
Input-output
model
Developed
country
a
b
s
t
r
a
c
t
Import
virtual
water
is
an
effective
way
to
alleviate
water
shortage.
Since
China
is
a
country
that
suffers
severely
from
the
lack
of
water
resources,
it
is
badly
needed
to
research
in
virtual
water
export
and
import
in
China’s
foreign
trade.
This
paper
conducted
thorough
research
on
these
issues
and
lucubrated
on
the
detailed
destinations
and
origins
of
China’s
virtual
water
export
and
import
using
the
input-
output
model.
Moreover,
the
factors
that
affect
China’s
virtual
water
trade
have
also
been
studied
in
this
paper.
The
results
indicated
that:
(1)
from
2000
to
2012,
the
volume
of
virtual
water
export
increased
from
65.2
billion
tons
to
114.1
billion
tons,
and
its
import
volume
increased
from
62.4
billion
tons
to
108.7
billion
tons.
China
was
a
net
exporter
of
virtual
water;
(2)
the
export
of
virtual
water
was
mainly
exported
by
sectors
such
as
Textile
&Garment
and
Leather
Products,
General
Machinery
and
Equipment
Manufacturing
Industry,
the
import
of
virtual
water
was
mainly
imported
by
Agriculture,
Petrochemical
industry;
(3)
China
has
net
exported
large
amounts
of
virtual
water
to
developed
areas
such
as
the
US,
the
European
Union,
and
Japan,
and
has
net
imported
from
emerging
economies
and
resource-oriented
regions
such
as
Taiwan
(China),
ASEAN,
Brazil,
Korea,
Australia
and
Russia.
Based
on
these
conclusions,
this
paper
proposed
that
China’s
foreign
trade
structure
needed
to
be
adjusted
to
relieve
the
water
shortage
by
the
following
methods
the
first
is
appropriately
lower
the
export
proportion
of
products
from
sectors
such
as
Food,
Beverage
&
Tobacco
Products,
Petrochemical
Industry,
which
exported
a
large
proportion
of
virtual
water;
the
second
is
to
enlarge
the
export
proportion
of
products
with
low
water
consumption,
such
as
service
industry;
the
third
is
to
make
full
use
of
the
water
saving
effect
of
import.
©
2017
Published
by
Elsevier
B.V.
1.
Introduction
Water
is
a
crucial
natural
resource
for
the
survival
of
human
beings,
and
also
a
strategic
resource
for
the
sustainable
develop-
ment
of
economy
of
a
country
(region).
At
present,
many
countries
have
suffered
from
water
scarcity.
It
is
estimated
by
the
United
Nations
that
there
will
be
a
population
of
2–2.7
billion
facing
the
problem
of
water
shortage
till
2050,
and
the
per
capita
water
resource
will
decrease
by
more
than
1/3
globally
in
the
next
20
years
(United
Nations,
2003).
Among
these
countries,
China
suf-
fered
most
from
water
shortage
in
that
its
per
capita
available
water
resource
is
only
2300
m3,
less
than
1/4
of
the
world
per
capita,
rank-
ing
the
110th
globally,
and
is
one
of
the
13
countries
that
most
lack
∗Corresponding
author
at:
School
of
Humanities
and
Economic
Management,
China
University
of
Geosciences,
No.
29
Xueyuan
Road,
Haidian
District,
Beijing
100083,
China.
E-mail
address:
wusanmang@sina.com
(S.
Wu).
of
water
resources
in
the
world.
There
are
also
considerable
regional
diversities
between
South
and
North
China,
the
per
capita
avail-
able
water
resource
in
South
China
is
about
3600
m3,
much
more
than
720m3in
North
China
(He
et
al.,
2011).
Besides,
among
699
cities
of
China,
400
have
insufficient
supply
of
water
perennially,
and
110
are
threatened
by
water
scarcity,
which
have
significantly
restricted
the
sustainable
development
of
China’s
national
econ-
omy
(Huang
and
Qin,
2009).
On
the
other
hand,
China’s
foreign
trade
value
has
been
boom-
ing
since
China
joined
the
WTO
in
2001.
The
import
and
export
volume
increased
from
RMB1863.8
billion
and
RMB2063.4
billion
in
2000
to
RMB14388.3
billion
and
RMB12035.8
billion
in
2014,
and
China
has
become
the
No.
1
trading
country
in
the
world
(China’s
National
Bureau
of
Statistics,
2015).
Owning
to
the
water
consump-
tion
during
the
manufacturing
process
of
the
commodity,
there
is
hidden
water
in
the
commodity,
which
is
called
“virtual
water”
(Allan,
1993).
Such
massive
imports
and
exports
of
commodities
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
0921-3449/©
2017
Published
by
Elsevier
B.V.
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
2
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
have
inevitably
led
to
the
fact
that
China
has
exported
and
imported
a
great
amount
of
virtual
water.
In
1999,
Prof.
Allan
proposed
the
point
that
a
country
(region)
could
implement
the
virtual
water
trade
strategy
to
import
water
resource
intensive
products
from
another
country
(region),
and
to
reduce
the
exports
of
products
with
high
water
consumption,
in
order
to
import
(virtual)
water
resources
and
save
its
own
water
resources.
It
is
expensive
to
import
or
export
real
water,
so
the
trade
of
virtual
water
has
overcome
this
drawback,
and
is
an
effective
way
to
deal
with
water
shortage
for
countries
with
scarce
water
resources
(Allan,
1999;
Hoekstra,
2003).
In
the
past
20
years,
the
trade
flow
and
trade
volume
of
virtual
water
among
all
countries
has
at
least
doubled
(Dalin
et
al.,
2012).
With
the
rapid
development
of
China’s
international
trade,
the
water
shortage
problem
will
be
alleviated
to
a
large
extent
through
the
virtual
water
trade
strategy
–
to
adjust
China’s
foreign
trade
structure,
cut
down
virtual
water
export
and
increase
virtual
water
import.
However,
the
first
problem
for
implementing
virtual
water
trade
strategy
is
to
grasp
relevant
information
such
as
the
import
and
export
volume,
the
destination
and
source
of
virtual
water
trade
and
its
changes
with
time
goes
by.
From
present
literature,
researchers
have
not
investigated
the
abovementioned
problem
quantitatively.
Therefore,
this
paper
based
on
previous
studies
on
virtual
water
trade,
adopted
the
input-output
tables
of
China
from
2000
to
2012
and
detailed
trade
data
of
subsectors
between
China
and
its
trade
partners
to
investigate
these
problems,
and
put
for-
ward
corresponding
suggestions
on
the
adjustment
of
the
foreign
trade
structure.
2.
Literature
reviews
Initially,
the
object
of
quantitative
study
on
virtual
water
trade
is
mainly
agricultural
products.
Firstly,
this
is
because
that
crops
contain
abundant
water
resources
and
thus
water
consumption
in
agriculture
accounts
for
a
great
part
of
global
water
consumption,
and
therefore,
agriculture
sector
bears
the
largest
water
consump-
tion
in
the
world.
Secondly,
the
calculation
of
the
virtual
water
content
in
industrial
and
service
products
is
complicated,
and
the
actual
water
consumption
of
industrial
products
is
less
than
that
of
agriculture
products,
and
thus
often
being
neglected.
The
calcula-
tion
methods
for
the
virtual
water
content
in
crops
in
most
studies
origin
from
the
Penman
formula
proposed
by
FAO
(the
UN
Food
and
Agriculture
Organization).
There
are
now
mainly
two
specific
methods
to
measure
the
vir-
tual
water
content
in
products:
one
is
to
investigate
the
production
tree
of
different
products
proposed
by
Chapagain
and
Hoekstra
(2003);
the
other
is
to
categorize
and
differentiate
products
into
agricultural
products,
industrial
products
and
animal
products
and
etc.
(Zimmer
and
Renault,
2003).
Many
studies
have
focused
on
agriculture,
and
even
directly
adopted
the
trade
volume
of
vir-
tual
water
in
agriculture
among
countries
(regions)
to
measure
the
whole
status
of
the
virtual
water
trade
among
relevant
areas.
For
instance,
Novo
et
al.
(2009),
Affuso
(2010)
and
El-Sadek
(2010)
took
Spain,
North
America
and
Egypt
respectively
as
examples
to
study
the
effects
of
international
trade
of
agricultural
products
on
the
water
resource
and
food
security
in
these
areas
with
virtual
water
embedded
in
food
as
measuring
object.
Roson
and
Sartori
(2010)
and
Antonelli
et
al.
(2012)
concentrated
on
the
Mediterranean
regions,
illustrated
the
virtual
water
flow
among
these
countries,
and
pointed
out
that
the
virtual
water
trade
in
agriculture
among
these
countries
had
achieved
the
reasonable
allocation
of
water
resources
and
alleviated
the
water
scarcity
in
relevant
countries.
Some
other
researchers
focused
on
a
global
level.
They
calculated
the
global
flow
of
virtual
water
based
on
the
food
trade
among
all
countries.
According
to
their
findings,
in
respect
of
the
inter-
national
trade
of
virtual
water
in
agriculture,
countries
such
as
America,
Canada,
Thailand,
and
India
are
major
net
exporters
of
virtual
water,
while
countries
such
as
Holland,
Japan
and
Korea
are
major
net
importers
of
virtual
water
(Aldaya
et
al.,
2010;
Hoekstra
and
Chapagain,
2007;
Hoekstra
and
Hung,
2005;
Schwarz
et
al.,
2015;
Biewald
et
al.,
2014).
Some
researchers
have
looked
at
the
water
use
or
virtual
water
trade
in
agriculture
in
China.
Cao
et
al.
(2015)
and
Liu
et
al.
(2015)
calculated
the
water
consumption
of
grain
cultivation
in
China;
the
result
was
approximately
689.04
billion
m3.
Shi
et
al.
(2014)
selected
27
main
crops,
measured
the
virtual
water
trade
among
China
and
other
trade
partners
from
1986
to
2009,
and
found
that
China
had
net
exports
of
virtual
water
to
Asia,
Africa
and
Europe,
but
had
net
imports
from
America,
and
overall
it
tended
to
be
an
net
importer
of
virtual
water.
Zhang
et
al.
(2016)
found
that
China’s
virtual
water
export
in
agriculture
had
been
declining
while
the
import
had
been
increasing,
which
is
related
to
the
booming
of
the
imports
of
agriculture
products.
However,
the
virtual
water
is
not
only
essential
for
crops,
but
also
deeply
rooted
in
the
whole
social
economy
and
in
all
walks
of
life.
With
further
exploration
on
virtual
water
trade,
researchers
have
increasingly
realized
the
limitation
of
using
virtual
water
in
agriculture
as
a
substitute
for
the
virtual
water
trade
among
regions.
Zhu
and
Gao
(2009)
calculated
the
virtual
water
volume
in
China’s
foreign
trade
in
all
industries,
and
the
results
manifested
that
the
exports
of
virtual
water
surpassed
the
imports
and
the
gap
was
expanding.
Zhu
(2014)
calculated
the
virtual
water
volume
in
China’s
foreign
trade
in
all
industries
in
2010,
and
the
results
illus-
trated
that
some
industrial
products
with
high
water
consumption
accounted
for
a
large
proportion
in
China’s
export
trade,
and
this
was
the
vital
reason
that
China
became
a
net
exporter
of
virtual
water.
Compared
with
the
findings
of
Zhang
et
al.
(2016),
it
can
be
seen
that
the
status
of
China’s
foreign
trade
of
virtual
water
goes
quite
opposite
when
the
research
object
transferred
from
agriculture
to
all
industries,
which
also
proved
the
limitation
of
studying
only
virtual
water
trade
in
agriculture.
With
the
contin-
uous
global
industrialization,
and
the
rapid
expansion
of
the
trade
flow
in
industries
and
service
industries
among
various
countries,
it
is
necessary
to
measure
the
trading
status
of
virtual
water
in
all
industries
among
various
countries
(regions),
so
as
to
evaluate
the
effects
of
international
trade
on
water
resources
in
relevant
areas.
For
this
purpose,
Van
Oel
et
al.
(2009)
conducted
a
quan-
titative
study
on
the
external
water
footprint
(EWFP)
of
Holland,
and
found
that
up
to
89%
of
the
water
footprint
came
from
exter-
nal
regions,
and
60%
of
which
were
from
industrial
products.
Islam
et
al.
(2006)
and
Orlowsky
et
al.
(2014)
launched
a
qualitative
study
on
the
water
resources
and
virtual
water
trade
in
various
countries,
and
indicated
the
need
for
some
countries
to
conduct
virtual
water
trade.
However,
restricted
by
their
research
method,
they
failed
to
calculate
the
virtual
water
trade
volume
in
all
industries
among
various
regions.
According
to
Su
and
Ang
(2012),
the
SDA
(structural
decompo-
sition
analysis)
can
be
used
to
analyze
the
driving
forces
to
the
changes
of
virtual
water
and
time-series
virtual
water
estimate.
In
addition,
the
SDA
can
also
be
applied
on
the
multi-region
compar-
isons
of
water
use
or
carbon
emission
performance
(Su
and
Ang,
2016).
For
instance,
Yang
et
al.
(2016)
analyzed
on
the
growing
water
use
in
China
during
1997–2007
by
applying
the
dynamic
SDA
model.
Zhi
et
al.
(2014)
studied
the
water
footprint
changes
in
the
Haihe
River
basin
in
China
with
the
help
of
IO
tables
and
SDA
model.
Since
the
manufacturing
process
of
industrial
products
is
intri-
cate,
and
relevant
to
various
sectors
in
the
whole
economic
system,
the
quantitative
measurement
of
the
virtual
water
in
industrial
or
service
products
has
always
been
the
difficulty
in
this
field.
The
input-output
model
with
water
consumption
coefficient
belongs
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
3
to
the
environmental
input-output
model,
which
covers
the
man-
ufacturing
process
and
usage
of
the
products
in
the
whole
economic
system,
and
is
able
to
track
the
water
resources
effects
behind
the
products
trade
with
the
universal
link
among
all
industries.
What’s
more,
it
is
conducive
to
differentiating
direct
and
indirect
consumption
of
virtual
water,
and
making
the
calculation
more
intuitive
and
more
precise.
Therefore,
this
method
has
become
a
main
research
method
for
studies
on
virtual
water
trade.
A
recent
study
conducted
by
Hubacek
and
Feng
(2016)
have
showed
that
the
input-output
model
has
great
advantage
in
tracking
the
water
consumption
and
pollution,
land
displacement
or
embodied
land
and
other
environmental
factors.
Lenzen
et
al.
(2013)
adopted
the
international
input-output
model
to
study
the
global
flow
of
vir-
tual
water,
and
found
that
developed
countries
had
imported
an
increasing
amount
of
virtual
water,
which
to
some
extent
alle-
viated
their
own
water
scarcity
problem.
Chen
and
Chen
(2013)
calculated
the
water
footprints
of
112
countries
(regions)
and
the
virtual
water
trade
among
these
countries
with
the
input-output
model.
Mubako
et
al.
(2013)
used
the
input-output
model
to
eval-
uate
the
utilization
of
water
resources,
and
quantified
the
virtual
water
transfer
between
the
state
of
California
and
Illinois.
In
addi-
tion,
the
input-output
model
can
also
be
used
to
trace
the
energy
or
carbon
flows.
Chen
and
Chen
(2015)
calculated
the
embodied
energy
consumption
used
to
produce
goods
and
services
in
the
city
of
Beijing,
including
the
direct
and
indirect
energy
consumption.
In
2016,
by
combining
network
analysis
and
input–output
analysis,
they
also
tracked
the
inter-regional
carbon
flows
in
Beijing
(Chen
and
Chen,
2016).
Many
scholars
have
conducted
quantitative
studies
on
China’s
virtual
water
problems
with
the
input-output
model,
and
their
research
can
be
generally
divided
into
two
kinds.
The
first
is
to
study
virtual
water
trade
among
different
regions
in
China.
For
instance,
Zhang
et
al.
(2011)
and
Wang
et
al.
(2013)
took
Beijing
as
their
research
object,
while
Wang
et
al.
(2014)
and
Dong
et
al.
(2013)
took
Shandong
Province
and
Liaoning
Province
as
their
research
object,
calculated
the
virtual
water
trade
volume
among
the
abovemen-
tioned
areas
and
other
regions
within
China
using
the
input-output
method.
Feng
et
al.
(2012)
and
White
et
al.
(2015)
investigated
the
virtual
water
trade
in
the
Yellow
River
Basin
and
Hai
River
Basin.
More
studies
focused
on
the
virtual
water
trade
among
all
regions
within
China,
and
the
results
indicated
that
the
virtual
water
trans-
ferred
from
the
Midwest
to
the
eastern
developed
areas
(Zhang
and
Anadon,
2014;
Deng
et
al.,
2016;
Jiang
et
al.,
2015;
Dong
et
al.,
2014).
For
instance,
Feng
et
al.
(2014)
assessed
the
virtual
water
flows
among
30
provinces
in
China
based
on
the
multiregional
input-output
analysis
and
found
that
some
water-scarce
regions
are
facing
a
serious
water
crisis
driven
by
rapid
economic
growth
of
China.
The
second
is
to
study
virtual
water
trade
among
China
and
other
countries.
Jiang
(2012),
Zhao
et
al.
(2009)
calculated
the
total
volume
of
the
imports
and
exports
of
the
virtual
water
in
all
industries
in
China,
given
a
specific
year,
and
from
the
empirical
results,
it
can
be
seen
that
China
in
general
was
a
net
exporter
of
virtual
water,
and
had
exported
high
proportion
of
products
with
high
water
consumption.
At
present,
China’s
foreign
trade
struc-
ture
is
aggravating
China’s
water
scarcity.
However,
their
research
did
not
traced
back
to
the
export
destination
and
import
source
of
virtual
water
in
various
sectors,
and
thus
could
not
put
forward
detailed
suggestions
for
the
adjustment
of
the
trade
structure.
In
conclusion,
although
numerous
studies
have
been
conducted
by
scholars
in
terms
of
virtual
water
trade,
its
research
fields
keep
expanding
from
agriculture
to
all
sectors
of
national
economy,
and
its
research
methods
are
under
continuous
perfection
with
the
input-output
method
being
widely
used.
In
addition,
many
scholars
did
massive
studies
on
China’s
virtual
water
trade,
but
there
is
no
scholar
who
has
split
China’s
imports
and
exports
of
virtual
water
to
different
countries
and
observed
the
changes
over
a
long
time,
and
analyzed
the
factors
that
affect
virtual
water
trade
between
China
and
each
country.
Therefore,
this
paper
conducted
a
quantita-
tive
study
on
the
above
mentioned
problems
with
the
input-output
tables
of
China
from
2000
from
2012,
and
proposed
relevant
policy
suggestions.
3.
Research
method
and
data
sources
3.1.
Input-output
model
of
virtual
water
trade
In
1936,
Leontief
published
the
article
which
named
Quantitative
input
and
output
relations
in
the
economic
systems
of
the
United
States
and
first
put
forward
the
input-output
analysis
(Leontief,
1936).
The
input-output
model
can
reflect
the
interdependence
between
the
various
sectors
of
the
economic
system
and
reflect
the
relation-
ship
between
the
production
and
distribution
of
the
various
sectors
of
the
national
economy.
Subsequently,
the
input-output
method
has
been
widely
used
in
new
areas
including
analysis
of
indus-
trial
structure,
accounting
for
environmental
pollution,
income
distribution,
wealth
and
capital
flows,
and
international
trade
fore-
casting.
3.1.1.
Basic
structure
of
the
input-output
model
Suppose
a
country
(region)
has
n
industrial
sectors,
then
the
basic
mathematic
structure
of
the
input-output
model
involves
n
linear
equations,
which
depicts
the
dependency
relationship
between
the
output
of
economic
sectors
and
other
correlated
sec-
tors
and
the
final
demand.
The
equation
is
as
follows:
xi=
n
j=1
zij +
fi(1)
In
this
equation,
n
reflects
the
number
of
sectors;
ximeans
the
total
output
of
sector
i;
zij means
the
intermediate
input
of
sector
i
to
sector
j;
firepresents
the
final
demand
of
sector
i.
Define
the
direct
input
coefficient
as
aij to
express
the
demand
of
sector
i’s
input
for
a
unit
output
of
sector
j.
The
formula
is
as
follows:
aij =zij
xj
(2)
Hence,
the
Eq.
(1)
can
be
expressed
as:
xi=
n
j=1
aijxj+
fi(3)
Expressed
in
matrix
form:
X
=
AX
+
F
(4)
X,
A
and
F
represent
total
output
matrix,
direct
consumption
coef-
ficient
matrix
and
final
demand
matrix
respectively.
Based
on
A,
it
is
known
that
(I-A)
is
a
invertible
non-singular
matrix.
The
Formula
(4)
can
be
rewritten
as
the
following
demand-oriented
form:
X
=(I
−
A)−1F,
makeB
=(I
−
A)−1=bij(5)
In
this
formula, (I
−
A)−1is
a
Leontief
inverse
matrix;
bij shows
the
whole
(indirect
and
direct)
demand
of
the
output
of
sector
i
for
the
unit
final
products
of
sector
j.
Hence,
the
relationship
between
the
final
demand
and
output
has
been
established
through
Leontief
coefficient.
3.1.2.
Eliminating
the
imports
in
the
intermediate
and
final
demands
The
input-output
model
can
incorporate
either
the
non-
competitive
or
competitive
imports
assumption.
The
study
by
Su
and
Ang
(2013)
firstly
analyze
the
imports
assumption
issues
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
4
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
and
find
out
the
relationship
between
the
embodiment
estimates
using
different
assumptions
(Su
and
Ang,
2013).
The
original
I-
O
tables
used
in
this
study
are
the
China’s
input-output
tables
compiled
by
China
National
Bureau
of
Statistics,
which
are
tables
using
the
competitive
imports
assumption.
This
means
that
there
is
a
certain
amount
of
imported
products
in
the
intermediate
and
final
demands
of
all
sectors
in
these
tables,
the
imports
need
to
be
eliminated
when
calculating
the
import
and
export
of
virtual
water
separately.
After
the
imports
of
each
sector
have
been
elim-
inated,
those
I-O
tables
are
no
longer
the
tables
using
competitive
imports
assumption.
We
adopted
the
non-competitive
imports
assumption
in
this
study.
It
is
unknown
that
among
the
inputs
of
various
sectors
in
other
sectors,
how
many
are
from
imported
products,
and
thus,
we
assume
the
import
ratio
is
the
same
as
the
proportion
of
imported
products
in
the
total
usage
(total
out-
put
+
import
−
export)
in
the
sector
(Weber
et
al.,
2008).
For
sector
i,
the
ratio
of
imported
products
to
the
total
usage
can
be
expressed
as
follows:
si=mi
xi+
mi−
ei
(6)
In
this
formula,
mirepresents
the
import
of
sector
i,
eimeans
the
export
of
sector
i.
The
intermediate
usage
matrix
and
final
demand
matrix
within
the
country
excluding
the
import
can
be
expressed
as
follows:
Ad=
diag(1
−
s)A,
Fd=
diag(1
−
s)F(7)
Thus,
in
this
paper,
the
complete
consumption
coefficient
matrix
is:
B
=
(I
−
Ad)−1=
[b‘
ij]
(8)
3.1.3.
Direct
water
consumption
coefficient
and
complete
water
consumption
coefficient
The
direct
water
consumption
coefficient
and
complete
water
consumption
coefficient
need
to
be
determined
in
order
to
introduce
the
water
consumption
volume
into
the
input-output
structure.
The
direct
water
consumption
coefficient
reflects
the
direct
water
consumption
volume
to
manufacture
unit
product,
and
its
mathematical
expression
is
as
follows:
W
=
[ωi],
ωi=wi
xi
(9)
Define
the
complete
water
consumption
coefficient
as
ıjand
the
complete
water
consumption
coefficient
matrix
as
D.
ıjcan
be
calculated
by
multiplying
the
direct
water
consumption
coeffi-
cient
by
Leontief
coefficient,
and
it
reflects
the
water
consumption
volume
of
all
sectors
in
social
economy
during
the
whole
manufac-
turing
process
of
the
product
that
meets
the
final
demand
of
the
unit
sector
j.
ıj=
n
i=1
ωib‘
ij,
D
=
[ıj](10)
3.1.4.
Calculation
of
the
virtual
water
export
and
import
From
the
above
deduction,
with
export
being
a
component
of
the
final
demand
(consumption,
investment,
export),
the
virtual
water
content
in
the
exported
products
can
be
calculated
by
multiplying
the
complete
water
consumption
coefficient
matrix
by
the
export
matrix
excluding
the
import;
hence
the
export
of
virtual
water
can
be
expressed
as:
WE=
W(I
−
Ad)−1Ed=
DEd(11)
In
this
formula,
Ed=
diag (1
−
s)E
means
the
export
matrix
exclud-
ing
the
import.
As
for
the
calculation
of
virtual
water
import,
when
a
coun-
try
(region)
imports
a
commodity,
it
saves
water
resources
that
are
needed
for
producing
the
commodity
domestically,
and
the
saved-amount
of
water
is
equal
to
the
water
consumption
for
pro-
ducing
the
commodity
in
the
importing
country.
In
this
way,
the
water-saving
volume
of
imported
products
(or
the
virtual
water
avoided
by
the
imports)
is
only
related
to
the
level
of
production
technology
(input-output
relationship
among
all
sectors)
of
the
importing
country.
When
importing
a
product
from
certain
sec-
tor,
not
only
the
direct
water
consumption
of
that
sector
is
saved,
but
also
the
indirect
water
consumption
contained
in
the
interme-
diate
input
products
during
the
manufacturing
process.
Therefore,
the
calculation
of
the
water-saving
volume
of
imported
products
should
be
in
accordance
with
the
complete
water
consumption
method
for
domestic
final
output.
Although
the
virtual
water
con-
tent
in
the
imported
products
calculated
by
this
method
is
not
the
actual
water
consumption
during
the
manufacturing
process
aboard,
when
focusing
on
the
importing
country,
this
method
can
better
reflect
the
influence
of
the
import
on
the
water
resources
in
the
country.
However,
when
the
research
scale
has
expanded
to
all
countries
in
the
world,
and
the
research
target
is
the
global
water
flow
under
the
international
trade,
this
method
cannot
be
applied,
and
the
technological
differences
of
various
countries
ought
to
be
considered
(Weber
et
al.,
2008;
Zhu
and
Gao,
2009).
This
paper
used
the
input-output
coefficient
of
the
importing
country
(China)
to
calculate
the
virtual
water
import:
WM=
W(I
−
Ad)−1M
=
DEd(12)
M
is
the
import
matrix.
Thus,
the
net
exports
of
virtual
water
of
a
country
(region)
can
be
expressed
as:
NW
=
WE−
WM(13)
Owning
to
the
productive
relations
among
all
sectors,
the
pro-
duction
of
a
commodity
of
certain
sector
may
be
in
need
of
the
product
input
from
other
sectors,
which
leads
to
the
transfer
of
virtual
water
among
various
sectors.
For
a
certain
sector,
the
vir-
tual
water
transferred
from
other
sectors
can
be
calculated
with
the
input-output
formula
and
the
direct
water
consumption
coef-
ficient.
Wij represents
the
transferred
amount
of
virtual
water
of
sector
i
to
sector
j
for
its
unit
final
product.
It
can
be
achieved
by
Formulas
(8)
and
(9):
Wij =
b‘
ijωi(14)
Then
the
virtual
water
in
a
certain
sector’s
exports
came
from
all
sectors.
In
other
words,
the
virtual
water
export
that
came
from
a
certain
sector
was
exported
by
all
sectors.
So,
when
studying
the
sector
characters
of
virtual
water
export,
for
any
sector
i,
the
“virtual
water
of
sector
i
that
was
exported
by
all
sectors”
(shortly
defined
as
“virtual
water
export
of
sector
i”),
and
the
“virtual
water
exported
by
sector
i”
and
make
the
former
Wi,
according
to
Formula
(14),
it
can
be
shown
as:
Wi=
Wi1+
Wi2+
.
.
..
+
Wij +
.
.
.
+
Win =
n
j=1
Wij (15)
The
“virtual
water
exported
by
sector
i”
means
the
virtual
water
embodied
in
the
exported
products
of
sector
i
(it
may
come
from
all
sectors).
Define
it
as
W
i,
and
according
to
Formula
(14),
it
can
be
shown
as:
W
i=
W1i+
W2i+
.
.
..
+
Wji +
.
.
.
+
Wni =
n
j=1
Wji (16)
For
better
comprehension,
we
assume
there
are
only
two
sec-
tors,
i
and
j,
and
each
sector
exports
only
1
unit
of
product,
then
the
virtual
water
transfer
among
sectors
resulted
from
the
export
can
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
5
Fig.
1.
Virtual
Water
Transfer
among
Sectors.
Table
1
Sector
Classification.
Sector
code
Sectors
A01
Agriculture
A02
Mining
Industry
A03
Food,
Beverage
&
Tobacco
Products
A04
Textile,
Garment,
Leather
Products
A05
Wood
and
Furniture
Manufacturing
Industry
A06
Paper
and
Printing
Industry
A07
Petrochemical
Industry
A08
Other
Nonmetallic
Mineral
Products
Industry
A09
Metal
Products
Industry
A10
General
Machinery
and
Equipment
Manufacturing
Industry
A11
Transportation
Equipment
Manufacturing
Industry
A12
Other
Manufacturing
industry
A13
Electric
and
Water
Industry
A14
Architecture
and
Service
Industry
be
shown
as
Fig.
1.
For
sector
i,
the
virtual
water
export
of
sector
i
is
Wii +
Wij,
and
the
virtual
water
exported
by
sector
i
is:
Wii +
Wji.
3.2.
Data
sources
This
paper
used
China’s
input-output
tables
of
six
years
from
2002
to
2012
(2000,
2002,
2005,
2007,
2010,
2012),
which
were
compiled
and
released
by
China’s
National
Bureau
of
Statistics
(National
Bureau
of
Statistics
of
China,
2015).
This
paper
merged
33
sectors
into
14
sectors
in
the
input-output
tables,
and
the
specific
classification
is
exhibited
in
Table
1.
For
the
water
consumption
data
of
various
sectors
in
China,
the
data
of
agriculture
sector
is
from
China
Statistical
Yearbook
of
rele-
vant
years
(China’s
National
Bureau
of
Statistics,
2013,
2001,
2003,
2006,
2008,
2011);
and
data
of
other
sectors
are
from
China
Statisti-
cal
Yearbook
on
Environment
(China’s
National
Bureau
of
Statistics,
2013).
Eventually,
the
trading
data
between
China’s
sectors
and
their
counterparts
of
other
countries
are
from
OECD
international
trade
database.
In
fact,
sector
aggregation
may
have
an
impact
on
the
results,
and
different
combing
methods
may
lead
to
different
results,
espe-
cially
at
the
sectorial
level
results.
Su
et
al.
(2010)
firstly
analyzed
the
sector
aggregation
issues
on
the
embodiment
studies,
and
cal-
culated
the
results
of
energy-related
CO2
emissions
embodied
in
China’s
exports
under
different
levels
of
sector
aggregation.
The
main
reason
why
we
merged
the
33
sectors
into
the
14
sectors
in
Table
1
is
this
aggregation
can
make
the
sectors
cover
all
the
sectors
in
the
input-output
table,
the
Environmental
Statistical
Yearbook
and
the
OECD
database,
and
farthest
ensures
the
reliability
of
the
results.
Fig.
2.
Export
Ratio
of
China
to
Other
Regions.
4.
Research
results
and
discussion
4.1.
Analysis
of
China’s
export
and
import
There
was
a
vigorous
growth
of
China’s
exports
after
China
joined
WTO
in
2001.
The
export
volume
increased
from
RMB
2063.4
billion
in
2000
to
RMB
12935.9
billion
in
2012,
by
6.2
times
(China’s
National
Bureau
of
Statistics,
2015).
Although
China
has
established
trading
relationships
with
most
countries
and
areas
in
the
world,
it
mainly
exports
to
regions
such
as
the
EU,
the
US,
Japan,
ASEAN,
Hong
Kong,
Korea,
Taiwan,
Australia,
Russia
and
Brazil
(Fig.
2).
Pursuant
to
Fig.
2,
the
export
volume
of
China
to
the
ten
regions
such
as
EU
and
so
on
(except
“Rest
of
the
world”)
is
basically
accounting
for
80%
and
above
in
its
total
export
volume,
and
the
EU,
the
US,
Japan,
ASEAN
and
Hong
Kong
are
China’s
dominating
export
destinations
of
commodities.
These
five
regions
are
traditionally
developed
economies
except
ASEAN,
and
possess
substantial
eco-
nomic
aggregate
except
Hong
Kong.
From
the
perspective
of
the
export
ratio
of
various
sectors
in
China
(Fig.
3),
A04
(Textile,
Garment,
Leather
Products),
A07
(Petro-
chemical
Industry)
and
A10
(General
Machinery
and
Equipment
Manufacturing
Industry)
are
China’s
major
export
sectors,
while
Agriculture
and
Service
Industry
have
few
export
volume.
From
the
aspect
of
the
variation
trend
of
exports
in
various
sectors,
the
export
ratio
of
A10
(General
Machinery
and
Equipment
Manufac-
turing
Industry)
keeps
rising,
and
has
achieved
above
40%
of
the
total
export
since
2007
while
the
export
ratio
of
A04
(Textile,
Gar-
ment,
Leather
Products)
keeps
declining.
China’s
imports
have
been
booming
with
the
accession
to
WTO.
The
import
volume
increased
from
RMB1863.8
billion
in
2000
to
RMB11480
billion
in
2012,
by
5.16
times.
The
EU,
the
US,
Japan,
ASEAN,
Hong
Kong,
Korea,
Taiwan,
Australia,
Russia
and
Brazil
are
also
the
key
import
sources
of
China,
and
the
import
ratio
of
China
from
the
above
ten
regions
kept
about
80%
of
its
total
import
vol-
ume
from
2000
to
2012
(China’s
National
Bureau
of
Statistics,
2015).
4.2.
Analysis
of
China’s
virtual
water
import
and
export
from
the
perspective
of
sectors
4.2.1.
The
variation
of
China’s
total
virtual
water
import
and
export
Based
on
our
calculation,
there
was
in
total
65.3
billion
tons
of
virtual
water
export
in
China’s
foreign
trade
in
2000.
Due
to
the
rapid
development
of
China’s
export,
the
export
volume
of
virtual
water
increased
by
75%
to
114.2
billion
tons
in
2012
compared
with
that
of
2000
(Fig.
4).
China
had
exported
accumulatively
549
billion
tons
of
virtual
water
in
the
six
years,
namely
2000,
2002,
2005,
2007,
2010,
and
2012
(the
six
years
hereafter
all
refers
to
these
years).
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
6
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
Fig.
3.
Export
Ratio
of
Various
Sectors
in
China.
Fig.
4.
Variation
of
Virtual
Water
Import
and
Export
Volume
in
China’s
Foreign
Trade.
Meanwhile,
China’s
virtual
water
import
increased
from
62.3
billion
tons
in
2000–112.6
billion
tons
in
2012,
and
China
had
accumula-
tively
imported
514.4
billion
tons
of
virtual
water
in
the
six
years.
China
was
mainly
a
net
exporter
of
virtual
water,
and
had
a
net
export
of
34.6
billion
tons
of
virtual
water
in
the
six
years,
and
thus
China’s
foreign
trade
had
exacerbated
its
water
scarcity,
which
fur-
ther
confirmed
the
research
conclusion
of
Zhu
and
Gao
(2009)
and
Zhu
(2014),
but
was
distinctively
different
from
the
research
results
of
Shi
et
al.
(2014),
who
studied
China’s
virtual
water
import
and
export
from
the
perspective
of
crops.
As
we
have
mentioned
in
the
part
of
Literature
Review,
there
are
already
many
scholars
who
have
studied
the
virtual
water
export
and
import
in
China’s
international
trade.
So
after
we
got
the
results
of
China’s
virtual
water
export
and
import
in
the
period
of
2000–1012,
we
draw
a
comparison
between
our
results
and
those
of
them
(Table
2).
It
can
be
seen
that
the
results
between
the
differ-
ent
studies
are
similar.
But
this
paper
studies
the
change
of
China’s
virtual
water
import
and
export
in
a
long
period
of
time.
4.2.2.
Sector
characters
of
virtual
water
export
We
first
analyzed
the
virtual
water
export
of
each
sector,
to
explore
which
sectors
are
China’s
virtual
water
exports
mainly
from,
this
paper
adopted
Formula
(15)
to
calculate
them
(Fig.
5).
As
is
reflected
in
Fig.
5,
the
virtual
water
exports
of
A01
(Agricul-
ture)
and
A13
(Electric
and
Water
Industry)
are
far
more
than
other
sectors.
During
the
six
years,
the
total
of
the
virtual
water
exports
of
these
two
sectors
has
been
occupied
about
80%
of
China’s
overall
virtual
water
exports.
There
are
two
reasons
for
the
larger
virtual
water
exports
in
A01
and
A13.
The
first
is
from
the
view
of
direct
water
consumption
coefficient
(Fig.
6).
The
water
consumption
is
massive
in
the
manufacturing
process
of
the
products
of
the
two
sectors,
and
thus
the
two
sectors
belong
to
high
water
consump-
tion
sectors;
the
second
is
from
the
angle
of
industrial
chain.
These
two
sectors
are
basic
industries
that
are
at
the
end
of
the
industrial
chain,
and
the
exports
of
other
sectors
will
stimulate
the
exports
of
these
two
sectors.
We
also
analyzed
the
virtual
water
exported
by
each
sector’s
export
by
Formula
(16)
(Fig.
7).
As
is
illustrated
in
Fig.
7,
the
sectors
that
can
greatly
pull
China’s
virtual
water
exports
are
A03
(Food,
Beverage
&
Tobacco
Products),
A04
(Textile,
Garment,
Leather
Prod-
ucts),
A07
(Petrochemical
Industry)
and
A10
(General
Machinery
and
Equipment
Manufacturing
Industry)
and
etc.
For
2000,
2002,
2005,
2007,
2010
and
2012,
the
summation
of
China’s
virtual
water
exported
by
the
above-mentioned
4
sectors’
exports
were
respec-
tively
51.8
billion
tons,
181.5
billion
tons,
51.1
billion
tons
and
102.9
billion
tons.
The
proportion
of
the
virtual
water
exported
by
these
4
sectors
in
China’s
total
virtual
water
exports
had
been
kept
above
70%.
These
4
sectors
all
belong
to
manufacturing
indus-
try,
which
indicates
that
exports
in
manufacturing
industry
are
the
major
force
for
pulling
the
exports
of
virtual
water
in
China,
while
agriculture
and
service
industry’s
promoting
effects
are
not
signif-
icant.
On
the
one
hand,
there
is
a
rapid
development
of
China’s
manufacturing
industry
since
the
reform
and
opening
up
policy.
China
has
become
the
No.1
manufacturing
country
in
the
world,
and
the
manufacturing
sector
is
a
dominating
sector
for
China’s
export.
In
fact,
it
can
be
found
with
Fig.
3
that
A03
(Food,
Beverage
&
Tobacco
Products),
A04
(Textile,
Garment,
Leather
Products),
A07
(Textile,
Garment,
Leather
Products)
and
A10
(General
Machinery
and
Equipment
Manufacturing
Industry)
are
also
large
sectors
for
China’s
export.
On
the
other
hand,
China
has
a
large
population,
and
the
per
capita
cultivated
land
is
limited,
and
hence
the
export
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
7
Table
2
Studies
about
the
virtual
water
export
(VWE)
and
virtual
water
import
(VWI)
in
China’s
international
trade
(100
million
tons).
2000
2002
2005
2007
2010
2012
VWE
VWI
VWE
VWI
VWE
VWI
VWE
VWI
VWE
VWI
VWE
VWI
Zhao
et
al.
(2009)
×
×
789
636
×
×
×
×
×
×
×
×
Zhu
and
Gao
(2009)
×
×
575
474
×
×
×
×
×
×
×
×
Jiang
(2012) 775
627
736
613
1123
982
1208
951
×
×
×
×
Zhu
(2014) ×
×
×
×
×
×
×
×
1397
1394
×
×
This
Study
653
623
677
582
951
921
951
805
1116
1087
1142
1126
Fig.
5.
Virtual
Water
Export
of
China’s
Various
Sectors.
of
agriculture
products
is
few.
The
development
of
service
indus-
try
has
long
been
lagged
behind
in
China.
In
2014,
the
proportion
of
China’s
service
export
in
the
trade
export
is
25%,
while
the
pro-
portion
of
the
world’s
service
export
in
the
trade
export
is
26.4%
(China’s
National
Bureau
of
Statistics,
2015).
Comparing
the
virtual
water
export
of
various
sectors
with
the
virtual
water
exported
by
various
sectors’
exports
in
China,
it
can
be
found
that:
firstly,
there
is
a
huge
difference,
and
little
correla-
tion
between
these
two
indicators.
For
instance,
there
is
a
large
amount
of
virtual
water
export
in
Agriculture
and
Electric
and
Water
Industry,
nevertheless,
there
is
few
virtual
water
exported
by
these
two
sectors’
exports.
This
is
because
the
amount
of
virtual
water
exported
is
highly
correlated
with
the
export
volume
of
the
sector,
while
the
amount
of
virtual
water
export
is
correlated
with
the
sector’s
direct
water
consumption
coefficient
and
its
position
in
the
industry
chain.
Secondly,
the
export
ratio
of
virtual
water
in
various
sectors
has
been
stable,
while
there
is
a
great
variation
of
the
ratio
of
virtual
water
exported
by
various
sectors’
exports.
For
example,
the
ratio
of
virtual
water
exported
by
agriculture
exports
declined
from
16%
in
2000–5%
in
2012,
and
this
was
closed
related
to
the
variation
of
the
export
volume
of
all
sectors.
In
accordance
to
Fig.
2,
the
proportion
of
export
volume
in
agriculture
descended
from
2%
in
2000–0.7%
in
2012.
Fig.
6.
Direct
Water
Consumption
Coefficient
of
China’s
Various
Sectors.
4.2.3.
Virtual
water
imported
by
China’s
various
sectors’
imports
Fig.
8
demonstrates
the
virtual
water
imported
by
China’s
var-
ious
sectors’
imports.
It
is
clear
that
China’s
sectors
that
have
significantly
pulled
the
virtual
water
import
are
A01
(Agriculture),
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
8
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
Fig.
7.
Virtual
Water
Exported
by
Various
Sectors’
Export
of
China.
Fig.
8.
Virtual
Water
Imported
by
China’s
Various
Sectors’
Imports.
A10
(General
Machinery
and
Equipment
Manufacturing
Industry),
A03
(Food,
Beverage
&
Tobacco
Products),
A02
(Mining
Industry),
A07
(Petrochemical
Industry)
and
etc.
The
summation
of
virtual
water
imported
by
the
above-mentioned
five
sectors’
imports
in
2000,
2002,
2005,
2007,
2010
and
2012
were
respectively
127.4
billion
tons,
116.4
billion
tons,
84.6
billion
tons,
50
billion
tons
and
39.6
billion
tons.
The
virtual
water
imported
by
these
5
sec-
tors’
imports
has
occupied
about
80%
in
China’s
total
virtual
water
import
volume.
4.2.4.
The
net
export
of
virtual
water
driven
by
China’s
various
sectors
A04
(Textile,
Garment,
Leather
Products)
and
A12
(Other
Man-
ufacturing
industry)
are
two
sectors
that
net
export
most
of
virtual
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
9
Fig.
9.
Virtual
Water
Net
Exported
by
Various
Sectors’
Foreign
Trade.
water
in
China
(Fig.
9),
and
their
aggregate
in
the
six
years
can
achieve
154.4
billion
tons
and
38.8
billion
tons.
Therefore,
these
two
sectors
deserve
substantial
attention
in
order
to
reduce
China’s
virtual
water
export.
A01
(Agriculture),
A02
(Mining
Industry),
and
A07
(Petrochemical
Industry)
had
a
net
import
of
87.8
billion
tons,
47
billion
tons
and
33.5
billion
tons
of
virtual
water.
China
has
to
some
degree
saved
its
water
resources
through
the
imports
of
these
sectors.
4.3.
Analysis
of
virtual
water
import
and
export
between
China
and
other
countries
(regions)
in
the
world
Based
on
the
above
analysis,
the
ten
areas
such
as
the
EU,
the
US
and
etc.
are
the
main
export
destinations
as
well
as
import
sources
of
China’s
products.
Thus
this
paper
analyzed
the
virtual
water
import
and
export
between
China
and
the
above-mentioned
areas
(Table
3).
Please
note
that
this
paper
calculated
the
virtual
water
import
using
the
water
consumption
coefficient
of
importer
(China).
Therefore,
the
virtual
water
import
of
China
in
this
paper
is
the
virtual
water
avoided
by
importing,
not
the
actual
virtual
water
embodied
in
imported
goods.
But
the
“virtual
water
avoided
by
importing”
is
more
accurate
to
measure
the
impact
of
import
activities
on
China’s
water
resources.
So
the
following
analyses
of
the
bilateral
virtual
water
balance
are
used
to
evaluate
the
impact
of
trade
between
China
and
other
regions
on
China’s
domestic
water
resources.
This
article
does
not
study
the
actual
water
balance
in
international
trade,
and
also
does
not
assess
the
gains
and
losses
of
China
in
bilateral
trade
with
each
region
in
Table
3.
4.3.1.
The
gross
volume
of
virtual
water
import
and
export
between
China
and
other
countries
regions
in
the
world
Developed
areas
such
as
The
US,
the
EU,
Hong
Kong
(China),
Japan
and
etc.
are
main
areas
for
China’s
virtual
water
export.
In
the
six
years,
China
had
accumulatively
exported
98.5
and
94.8
billion
tons
of
virtual
water
to
the
US
and
the
EU,
accounting
for
17.9%
and
17.3%
of
China’s
virtual
water
export.
The
main
reason
that
China
had
exported
such
massive
virtual
water
to
the
US,
the
EU,
Hong
Kong
and
Japan
was
that
there
was
a
large
amount
of
virtual
water
in
the
manufactured
goods
exported
from
China
to
those
areas.
For
instance,
during
the
six
years,
China
had
implicitly
exported
43.1
and
17.8
billion
tons
of
virtual
water
to
the
US
through
exports
of
products
in
A10
(General
Machinery
and
Equipment
Manufacturing
Industry),
and
A04
(Textile,
Garment,
Leather
Products),
accounting
for
46.1%
and
18.9%
in
China’s
total
virtual
water
export
to
the
US.
Moreover,
during
the
six
years,
China
had
implicitly
exported
38.5
and
19.7
billion
tons
of
virtual
water
to
the
EU
through
exports
of
products
in
A10
(General
Machinery
and
Equipment
Manufacturing
Industry),
and
A04
(Textile,
Garment,
Leather
Products),
accounting
for
42.8%
and
21.9%
in
China’s
total
virtual
water
export
to
the
EU.
Meanwhile,
China
has
also
imported
substantial
virtual
water
from
those
regions.
During
the
six
years,
China
had
accumulatively
imported
72.3
and
61.9
billion
tons
of
virtual
water
from
the
EU
and
the
US,
accounting
for
14.1%
and
11.9%
of
China’s
virtual
water
import.
The
primary
reason
that
China
had
imported
such
massive
virtual
water
from
these
regions
was
that
there
was
a
large
amount
Fig.
10.
Sector
Composition
of
the
Virtual
Water
Trade
between
China
and
Other
Major
Regions.
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
10
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
Table
3
Virtual
Water
Trade
between
China
and
Other
Major
Regions
in
the
World
(100
million
tons).
2000
2002
2005
2007
2010
2012
Total
Hong
Kong
Export
112
112
129
113
120
139
725
Import
21
18
14
9
5
4
71
Net
Export
91
94
115
104
115
135
654
European
Union
Export
94
99
169
180
217
189
948
Import
73
61
83
72
100
104
493
Net
Export
21
38
86
108
117
85
455
The
United
States
Export
112
136
188
168
194
187
985
Import
70
60
100
86
140
163
619
Net
Export 42
76
88
82
54
24
366
Japan
Export
135
119
134
103
105
105
701
Import
88
79
105
81
97
75
525
Net
Export
47
40
29
22
8
30
176
Russia
Export
8
10
25
32
27
30
132
Import
22
30
38
34
29
31
184
Net
Export
−14
−20
−13
−2
−2
−1
−52
Australia
Export
9
9
14
14
19
21
86
Import
27
23
35
29
47
52
213
Net
Export
−18
−14
−21
−15
−28
−31
−127
Korea
Export
41
43
53
50
48
46
281
Import
61
50
85
66
78
74
414
Net
Export
−20
−7
−32
−16
−30
−28
−133
Brazil
Export
3
3
5
8
16
17
52
Import
11
17
35
38
69
87
257
Net
Export −8
−14
−30
−30
−53
−70
−205
ASEAN
Export
52
53
72
82
117
137
513
Import
79
78
124
119
161
162
723
Net
Export
−27
−25
−52
−37
−44
−25
−210
Taiwan
Export
12
11
16
14
18
18
89
Import
61
62
80
62
65
51
381
Net
Export
−49
−51
−64
−48
−47
−33
−292
Rest
of
the
World
Export
75
82
146
187
235
253
978
Import
110
104
222
209
296
323
1264
Net
Export
−35
−22
−76
−22
−61
−70
−286
Total
Export
653
677
951
951
1116
1142
5490
Import
623
582
921
805
1087
1126
5144
Net
Export 30
95
30
146
29
16
346
of
virtual
water
hidden
in
the
products
of
sectors
such
as
A01
(Agri-
culture)
imported
from
these
areas
to
China
(Fig.
10).
For
instance,
during
the
six
years,
China
had
accumulatively
imported
22.6
and
31.6
billion
tons
of
virtual
water
from
ASEAN
and
the
US
through
imports
of
products
in
A01
(Agriculture),
accounting
for
31.2%
and
51.0%
in
China’s
total
virtual
water
import
from
ASEAN
and
the
US
respectively.
4.3.2.
Net
virtual
water
trade
between
China
and
other
regions
in
the
world
Hong
Kong
(China),
the
EU,
the
US
and
Japan
are
primary
areas
for
China’s
net
export
of
virtual
water.
In
the
six
years,
China
had
accumulatively
exported
65.4
billion
tons,
45.5
billion
tons,
36.6
billion
tons
and
17.6
billion
tons
of
virtual
water
to
Hong
Kong
(China),
the
EU,
the
US
and
Japan
respectively.
The
reason
for
this
net
export
is
as
above-mentioned:
there
is
a
large
amount
of
virtual
water
hidden
in
the
manufactured
goods
exported
from
China
to
those
areas
through
A10
(General
Machinery
and
Equipment
Man-
ufacturing
Industry),
and
A
04
(Textile,
Garment,
Leather
Products)
(Fig.
11).
Taiwan
(China),
ASEAN,
Brazil,
Korea,
Australia,
and
Russia
are
major
areas
for
China’s
net
import
of
virtual
water.
In
the
six
years,
China
has
accumulatively
imported
29.2
billion
tons,
21
billion
tons,
20.5
billion
tons,
13.3
billion
tons
and
12.7
billion
tons
of
virtual
water
from
Taiwan
(China),
ASEAN,
Brazil,
Korea,
Australia,
and
Russia
respectively.
In
respect
of
type,
these
regions
belong
to
emerging
economies
or
resource-oriented
areas.
There
are
two
aspects
accounting
for
China’s
net
import
of
virtual
water
from
these
regions:
the
first
is
that
there
is
a
great
deal
of
virtual
water
hidden
in
the
products
of
agriculture
and
extractive
indus-
try
imported
from
resource-oriented
regions.
For
example,
the
A01
(Agriculture)
products
from
the
ASEAN
and
Brazil
contain
a
lot
of
virtual
water,
and
so
is
the
A01
(Agriculture)
and
A02
(Mining
Industry)
products
from
Australia.
The
second
is
that
the
manu-
factured
goods
imported
from
the
emerging
economies
contain
vast
virtual
water,
for
instance,
there
is
a
lot
of
virtual
water
in
the
A10
(General
Machinery
and
Equipment
Manufacturing
Industry)
products
imported
from
Taiwan
(China)
and
Korea.
4.4.
The
virtual
water
intensity
of
China’s
import
and
export
In
order
to
grasp
the
main
sectors
and
areas
for
the
structural
adjustment
in
China’s
foreign
trade,
the
virtual
water
intensity
of
China’s
import
and
export
trade
from
2000
to
2012
were
cal-
culated
from
the
perspective
of
sectors,
that
is
the
virtual
water
volume
pulled
by
various
sectors’
unit
import
and
export.
(Since
this
paper
used
the
input-output
coefficient
of
the
importing
coun-
try
to
calculate
the
virtual
water
import,
the
virtual
water
export
and
import
are
equal
in
the
unit
import
and
export
of
various
sec-
tors,
and
hence,
this
paper
only
analyzed
the
virtual
water
volume
pulled
by
the
unit
export
of
all
sectors)
(Fig.
12)
In
addition,
this
paper
evaluated
the
virtual
water
intensity
of
the
import
and
export
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
11
Fig.
11.
Virtual
Water
Transfer
between
China
and
Other
Major
Regions.
Fig.
12.
Virtual
Water
Intensity
of
the
Export
Trade
of
China’s
Various
Sectors.
Fig.
13.
Virtual
Water
Intensity
of
the
Trade
between
China
and
other
Major
Regions.
trade
between
China
and
other
major
regions,
that
is,
the
unit
vir-
tual
water
volume
contained
in
products
China
exported
to
other
regions
and
products
imported
from
other
regions
(Fig.
13).
According
to
Fig.
12,
although
the
virtual
water
intensity
of
the
exports
in
A01
(Agriculture)
and
A13
(Electric
and
Water
Industry)
are
the
biggest,
compared
with
the
direct
water
consumption
coef-
ficient,
there
is
little
difference
between
the
virtual
water
intensity
of
the
exports
in
these
two
sectors
and
the
other
sectors.
Com-
pared
with
the
direct
water
consumption
coefficient,
the
virtual
water
intensity
is
higher
in
the
export
trade
of
A03
(Food,
Beverage
&
Tobacco
Products),
A04
(Textile,
Garment,
Leather
Products)
and
A06
(Paper
and
Printing
Industry),
indicating
that
they
have
more
intermediate
demands
for
sectors
with
high
water
consumption
in
the
manufacturing
process.
It
can
be
seen
from
Fig.
13
that
the
virtual
water
intensity
of
the
products
imported
from
Brazil,
Australia,
and
Russia
to
China
has
greatly
surpassed
that
of
products
from
Korea,
Japan,
Taiwan
(China)
and
the
EU,
with
Brazil
being
the
highest,
0.046
t/10
thou-
sand
RMB,
and
Japan
being
the
lowest,
0.013
t/10
thousand
RMB.
Comparing
the
virtual
water
intensity
of
import
and
export
in
the
same
region,
the
virtual
water
intensity
of
the
products
imported
from
Brazil
and
Australia
to
China
is
far
exceeding
that
of
the
prod-
ucts
exported
to
those
two
countries,
which
is
on
the
contrary
to
the
trade
with
Korea
and
Japan,
indicating
that
in
general,
China’s
trade
with
Brazil
and
Australia
is
more
conducive
for
saving
its
water
resources.
5.
Conclusions
and
recommendations
This
paper
conducted
a
quantitative
study
on
the
virtual
water
import
and
export
in
China’s
foreign
trade
from
2002
to
2012
with
China’s
input-output
tables
from
2002
to
2012
with
a
view
to
pro-
viding
scientific
foundation
for
the
trade
structural
adjustment
to
alleviate
China’s
water
scarcity.
The
main
conclusions
are
as
fol-
lows:
1.
Since
2000,
China’s
rapid
development
of
its
foreign
trade
has
led
to
massive
virtual
water
export,
which
had
doubled
dur-
ing
2000–2012,
that
is
China’s
virtual
water
export
volume
increased
from
63.5
billion
tons
in
2000–114.2
billion
tons
in
2012.
Meanwhile,
China
had
imported
a
great
deal
of
virtual
water,
and
the
imported
volume
ascended
from
62.3
billion
tons
in
2000–112.6
billion
tons
in
1012.
Overall,
China
was
a
net
exporter
of
virtual
water,
and
its
foreign
trade
aggravated
its
water
scarcity.
2.
Manufacturing
industry
is
the
major
sector
for
pulling
China’s
virtual
water
export.
Manufacturing
industries
such
as
Food,
Beverage
&
Tobacco
Products,
Textile,
Garment,
Leather
Prod-
ucts,
Petrochemical
Industry,
General
Machinery
and
Equipment
Manufacturing
Industry
had
accumulatively
exported
387.3
bil-
lion
tons
of
virtual
water
in
China
for
the
six
years,
accounting
for
72%
of
its
total
virtual
water
export
volume.
There
was
no
significant
pulling
effect
of
agriculture
and
service
industry
on
China’s
virtual
water
export.
Nevertheless,
Agriculture
and
Elec-
tric
and
Water
Industry
are
the
two
sectors
that
bear
the
most
Please
cite
this
article
in
press
as:
Chen,
W.,
et
al.,
Virtual
water
export
and
import
in
china’s
foreign
trade:
A
quantification
using
input-output
tables
of
China
from
2000
to
2012.
Resour
Conserv
Recy
(2017),
http://dx.doi.org/10.1016/j.resconrec.2017.02.017
ARTICLE IN PRESS
G Model
RECYCL-3484;
No.
of
Pages
13
12
W.
Chen
et
al.
/
Resources,
Conservation
and
Recycling
xxx
(2017)
xxx–xxx
virtual
water
export.
During
the
six
years,
the
summation
of
virtual
water
exports
of
these
two
sectors
accounted
for
about
80%
of
China’s
total
virtual
water
export.
China
imported
virtual
water
through
three
sectors:
Agriculture;
Petrochemical
Indus-
try;
General
Machinery
and
Equipment
Manufacturing
Industry.
During
the
six
years,
the
summation
of
virtual
water
import
of
these
two
sectors
accounted
for
about
64%
of
China’s
total
virtual
water
import.
3.
China
has
net
exports
of
virtual
water
to
development
regions
such
as
the
EU,
the
US,
Japan
and
Hong
Kong
(China),
while
at
the
same
time
has
net
imports
from
emerging
economies
or
resource-oriented
regions
such
as
Taiwan
(China),
ASEAN,
Brazil,
Korea,
Australia,
Russia
and
etc.
The
reason
for
the
net
exports
is
because
there
is
substantial
virtual
water
contained
in
the
prod-
ucts
that
China
has
exported
to
the
developed
regions
through
General
Machinery
and
Equipment
Manufacturing
Industry,
Textile,
Garment,
Leather
Products.
While
the
reason
for
the
net
imports
from
emerging
economies
and
resource-oriented
regions
is
because
there
is
a
great
amount
of
virtual
water
contained
in
the
products
that
China
has
imported
from
those
regions
through
Agriculture
and
manufacturing
industry.
4.
The
virtual
water
intensity
is
pretty
strong
in
the
exports
of
sectors
such
as
Agriculture;
Electric
and
Water
Industry;
Food,
Beverage
&
Tobacco
Products;
Textile,
Garment,
Leather
Product
industry
of
China.
From
the
regional
perspective,
the
virtual
water
intensity
of
the
products
imported
from
Brazil
and
Australia
to
China
is
far
exceeding
that
of
the
products
exported
to
those
two
countries
from
China.
Based
on
the
above
conclusion
and
analysis,
the
author
believes
there
is
a
great
potential
to
alleviate
China’s
water
scarcity
through
the
adjustment
of
China’s
foreign
trade
structure.
First
and
foremost,
properly
lower
the
exports
of
the
indus-
tries
that
play
important
roles
in
promoting
China’s
virtual
water
export.
For
example,
reducing
the
export
ratio
of
sectors
such
as
Food,
Beverage
&
Tobacco
Products;
Textile,
Garment,
Leather
Prod-
ucts;
Petrochemical
Industry,
will
help
save
water
consumption
in
China’s
export
trade.
On
the
one
hand,
exports
can
be
abated
by
levying
export
tariff
and
resource
tax
on
these
industries;
on
the
other
hand,
these
industries
should
be
promoted
to
upgrade
from
the
manufacturing
stage
to
R&D
(research
and
development)
and
sales
stage
in
the
industrial
chain.
Compared
with
the
manufactur-
ing
stage,
R&D
and
sales
stage
in
the
industrial
chain
will
obtain
more
profits
with
less
water
consumption.
What’s
more,
the
export
ratio
of
products
with
low
water
con-
sumption
needs
to
be
expanded,
especially
for
service
industry.
China’s
Service
industry
not
only
bears
the
merit
of
low
water
consumption,
its
export
ratio
is
lower
than
the
world
average.
Therefore,
service
export
will
be
the
crucial
part
in
China’s
for-
eign
trade
in
the
future.
The
water
consumption
in
China’s
foreign
export
trade
will
be
diminished
through
enlarging
the
export
ratio
of
service
industry.
Last
but
not
least,
the
water
scarcity
of
China
can
be
relieved
by
making
full
use
of
the
water-saving
effect
from
the
import
trade.
Firstly,
expand
imports
of
sectors
such
as
Agriculture;
General
Machinery
and
Equipment
Manufacturing
Industry;
Petrochemi-
cal
Industry.
These
sectors
have
higher
virtual
water
intensity
in
China’s
import
and
export
trade.
Enhancing
the
import
of
com-
modities
in
these
sectors
can
better
ease
the
tension
of
China’s
water
consumption.
Secondly,
attach
great
importance
to
the
trade
with
resource-oriented
regions.
This
is
not
only
because
China
is
a
net
importer
of
virtual
water
in
the
trade
with
resource-oriented
regions,
but
also
in
that
the
virtual
water
intensity
is
higher
in
the
products
imported
from
resource-oriented
regions
such
as
Brazil,
Australia,
and
Russia.
It
is
worth
reminding
that
this
study
merged
the
33
sectors
in
the
input-output
table
into
14
sectors.
So
the
virtual
water
export
and
import
results
at
the
sector
level
may
lack
of
precision.
When
the
sector
classification
is
refined,
the
results
of
some
sectors
may
even
change
dramatically.
On
the
other
hand,
The
“same
technology
assumption
of
imports”
used
in
this
study
is
particularly
important,
as
single-region
input-output
model
is
not
able
to
correctly
calcu-
late
the
virtual
water
in
China’s
imports,
only
water
avoided
by
importing.
So
the
above
results
can
only
be
used
to
measure
the
impact
of
China’s
international
trade
activities
on
China’s
domestic
water
resources
and
cannot
be
used
to
evaluate
the
results
of
virtual
water
balance
of
bilateral
trade.
For
example,
if
the
manufactur-
ing
procedure
of
product
in
some
countries
is
more
water-saving
than
in
China,
the
actual
virtual
water
in
China’s
imports
from
these
countries
will
be
less
than
the
virtual
water
calculated
using
the
Chinese
water
use
coefficient.
So
the
results
derived
in
this
paper
tend
to
underestimate
China’s
virtual
water
net
export
to
developed
countries,
and
also
tend
to
underestimate
China’s
virtual
water
net
import
from
some
of
the
less
developed
regions.
Conflict
of
interest
The
authors
declare
that
there
is
no
conflict
of
interests
regard-
ing
the
publication
of
this
paper.
Author
contributions
Weiming
Chen
and
Sanmang
Wu
designed
the
research
and
methodology;
Yalin
Lei
and
Shantong
Li
collected
and
compiled
all
the
data
and
literature.
Weiming
Chen
and
Sanmang
Wu
completed
the
experiment
and
calculation;
Weiming
Chen
and
Shantong
Li
analyzed
the
results
and
proffered
the
policies.
Sanmang
Wu
and
Yalin
Lei
revised
the
manuscripts
and
approved
the
manuscripts;
Sanmang
Wu
will
be
responsible
for
the
future
questions
from
readers
as
the
corresponding
authors.
Acknowledgements
The
authors
are
grateful
for
financial
support
from
the
Funda-
mental
Research
Funds
for
the
Central
Universities
under
Grant
No.
52300859631,
the
National
Natural
Science
Foundation
of
China
under
grant
nos.
71003066
and
71133003.
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