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Article

Analysis of the Economy-Wide Rebound Effect of Water Efficiency Improvement in China Based on a Multi-Sectoral Computable General Equilibrium Analysis

by 1,2, 3, 4, 2,* and 2
1
Center for Innovation and Development Studies, Beijing Normal University, Zhuhai 519087, China
2
School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
3
School of Economics, Shandong University of Finance and Economics, Jinan 250014, China
4
Management Academy of China Cooperatives, Beijing 100028, China
*
Author to whom correspondence should be addressed.
Academic Editor: Renato Morbidelli
Water 2021, 13(21), 2963; https://doi.org/10.3390/w13212963
Received: 18 September 2021 / Revised: 18 October 2021 / Accepted: 19 October 2021 / Published: 20 October 2021
The effectiveness of water efficiency improvement is restricted by the water rebound effect by which anticipated water resource saving from improved water efficiency may be partly or wholly offset or even surpassed by an increase in water demand. The economy-wide rebound effect of water efficiency improvement in China is poorly understood. This study explored the economy-wide rebound effect of water efficiency improvement in China based on a multi-sectoral computable general equilibrium model. The results suggested that water efficiency improvement could effectively reduce water consumption in producing sectors and benefit economic growth and employment. However, the decrease in water consumption was much lower than the volume of water efficiency improvement, which indicated that the rebound effect partly offset water savings caused by water efficiency improvement. We observed a larger reduction in water consumption in the long run, which indicated a smaller rebound effect and a more significant effect in saving water resources in the long term. Notably, the total rebound effect in the short-run closure was much larger than that in the long-run closure, and the effect from the production side was much smaller. Hence, the economic-wide rebound effect is primarily derived from the incremental water consumption by households, investors, and governments. View Full-Text
Keywords: water efficiency; rebound effect; computable general equilibrium model; China water efficiency; rebound effect; computable general equilibrium model; China
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MDPI and ACS Style

Zhou, Y.; Li, J.; Wei, W.; Cui, Q.; He, L. Analysis of the Economy-Wide Rebound Effect of Water Efficiency Improvement in China Based on a Multi-Sectoral Computable General Equilibrium Analysis. Water 2021, 13, 2963. https://doi.org/10.3390/w13212963

AMA Style

Zhou Y, Li J, Wei W, Cui Q, He L. Analysis of the Economy-Wide Rebound Effect of Water Efficiency Improvement in China Based on a Multi-Sectoral Computable General Equilibrium Analysis. Water. 2021; 13(21):2963. https://doi.org/10.3390/w13212963

Chicago/Turabian Style

Zhou, Yexin, Jinghan Li, Wei Wei, Qi Cui, and Ling He. 2021. "Analysis of the Economy-Wide Rebound Effect of Water Efficiency Improvement in China Based on a Multi-Sectoral Computable General Equilibrium Analysis" Water 13, no. 21: 2963. https://doi.org/10.3390/w13212963

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