No abstract

The arid regions of Northwest China are facing water shortages and ecological fragility. Making full use of unconventional water is one of the effective ways of solving water issues and achieving high-quality regional development. The high cost of unconventional water utilization is the main obstacle to its utilization and technological development, and the subsidy policy may become a breaking point. Taking Ningdong Energy and Chemical Industry Base (NECI Base) as a case study, the article proposes raising the Yellow River water price to subsidize the utilization of mine water. The development and utilization of mine water can be effectively improved. Considering the optimal allocation of multiple water sources and the substitution relationship between the Yellow river water and mine water, this paper extends the water resources module (WRM) of the Computable General Equilibrium (CGE) model. The model can reflect the substitution of water sources and the linkage between water prices and the economy. Ten different subsidy policy scenarios are simulated through the extended CGE model, and the laws and mechanisms of the subsidy policy on the economy and water usage are summarized. The results show that increasing the price of Yellow River water by 8% to subsidize the mine water will achieve optimal socio-economic output. Under this scenario, the industrial value added (IVA) is basically unaffected, the water-use efficiency (WUE) is significantly improved, and the affordability of the enterprise is satisfied. The Yellow River water usage decreased from 319.03 million (M)m³ to 283.58 Mm³ (11.1% saving), and mine water usage increased from 27.88 Mm³ to 47.15 Mm³ (69.1% increase).

Water shortages in the Beijing-Tianjin-Hebei (BTH) region in China have constrained the region’s coordinated development. A feasible solution is introducing water rights transactions through the middle route of the South-to-North Water Diversion Project (SNWDP). However, there are few methods available for systematically simulating and evaluating the impact of inter-regional water rights transactions. In this study, an improved computable general equilibrium (CGE) model was developed to simulate the water rights transactions. Different water resources were integrated as intermediate inputs, and the model includes a substitution mechanism between different water resources. The water stress index (WSI) was used to evaluate the impact on the economy and water resources simulated by the model. The study proposes and evaluates different scenarios with different water-saving levels and transaction volumes. Water rights transactions have a positive effect on the overall economic growth of the BTH region, reducing the local water resource stress in Beijing and Tianjin; the transactions have a limited impact on the economy and water usage of Hebei Province. Compared with the general water-saving intensity scenario without water rights transactions, the recommended scenario adopts ultra water-saving intensity, along with the transfer of 100 hm3 of water rights from Hebei to Beijing and Tianjin. This leads to an increase in the overall gross domestic product (GDP) of the BTH region by CNY 0.587 trillion (USD 99.6 billion); a decrease in local water usage in Beijing and Tianjin of 197 hm3; and a relief in the regional imbalance of water resources stress. This study provides a quantitative analysis tool for evaluating the impact of water rights transactions and optimizing water resources allocations in the BTH region, providing a reference for simulating and evaluating water rights transactions in other regions.

Refined allocation of water resources is an important means of sustainable water resources utilization. Based on General Water Allocation and Simulation (GWAS), this study uses a Geographic Information System (GIS) to construct spatial topological relationships. A fairness optimal minimum was set as the objective function. Total quantity control, water supply potential, and quality-divided water supply were set as constraint conditions. Considering the dynamic mutual-feedback relationship between the middle-lower-reaches reservoir and the upstream reservoir, this study refines the allocation of water resources combined with the characteristics of “long cane knots melons” in the Pishihang irrigation area. Results showed that at 50%, 80%, and 90% frequencies in the base year, 2025, and 2035, respectively, the water deficient ratio is 0. For continuous drought years at 90% frequency, all water users are faced with different degrees of water shortage. In water source structures, water diversion in the irrigated area is the largest, followed by local surface water; reclaimed water and shallow groundwater are used as supplements. In the case of consecutive drought years, the water shortage degree can be reduced through rational development of local water and additional external water transfer. The model has thus been well applied. This study provides a more accurate method for optimizing water resources allocation.

In response to rapidly growing energy demands, Chinese authorities plan to invest more in hydropower development. However, there are concerns about the possible effects on macroeconomy. This paper uses SinoTERM, a dynamic multi-regional computable general equilibrium model (CGE) of the Chinese economy, to analyze the economic impact of large hydropower development projects. The model features regional labor market dynamics and an electricity subdivision module with substitutability between various types of electricity generation. The results suggest that hydropower development will boost economic growth in the project region. Most sectors in the project region will benefit from the hydropower development such as other services, health, and education, while some sectors will suffer a loss in output because of the substantial increase in real wages. For the national, every 10,000 yuan investment can drive the national GDP growth of 1,000 yuan, and the cost is expected to be recovered in ten years. By the end of 2040, the real national wage will be around 0.16% higher than the baseline scenario. The project could only be justified if net environmental benefits outweigh this loss.