The impact of virtual water strategy on domestic inter-regional agriculture products trade of China

Abstract

Faced with increasingly severe pressure on water resources, virtual water and virtual water trade theory provide a feasible solution to improve global water use efficiency for agricultural product and to alleviate the pressure on water resources in water-scarce countries or regions. However, virtual water strategy has not been considered in domestic inter-regional agriculture products trade of China. In this research, we will create scenarios, from two aspects of economy and the allocation and utilization of water resources, to study the impact of virtual water strategy on domestic inter-regional agriculture products trade of China. Two kinds of scenarios will be created. One kind of scenarios does not consider the virtual water strategy, which only consider the economic revenue - net social revenue maximization scenario. The other kind of scenarios considers the virtual water strategy - water resource balance scenario. And we will research the impact of virtual water strategy will be made on domestic interregional agriculture productions trade of China. The result shows that virtual water strategy could make advantage impact on the allocation and utilization of water resources by domestic inter-regional agriculture products trade of China. But domestic inter-regional agricultural products virtual water trade of China considered the virtual water strategy would cause great negative impact on net social revenue.