The economic impact of water diversion: evidence from China
Many areas in the world are facing the problem of sustainable development due to water scarcity. One of the reasons for this issue is that the regional distribution of water resources is inequitable worldwide. The water diversion is a potential way to ease the water shortages as a result of the uneq...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
IWA Publishing
2024-02-01
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| Series: | Water Supply |
| Subjects: | |
| Online Access: | http://ws.iwaponline.com/content/24/2/313 |
| _version_ | 1797200659039125504 |
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| author | Hang Xu Rui Yang |
| author_facet | Hang Xu Rui Yang |
| author_sort | Hang Xu |
| collection | DOAJ |
| description | Many areas in the world are facing the problem of sustainable development due to water scarcity. One of the reasons for this issue is that the regional distribution of water resources is inequitable worldwide. The water diversion is a potential way to ease the water shortages as a result of the unequal distribution of water resources. As is well known, the South-to-North Water Diversion Project (SNWDP) in China is the largest project of water diversion over the world, which is transferring water resources between two river basins. This paper analyses the economic impact of the water diversion with the example of the SNWDP. It was found that the economic status of the areas affected by the SNWDP increased, relative to other regions. This result is robust when estimating with alternative outcome measure or subsample, and with alternative methods. The mechanism analysis shows that the main reason for the increased economic development level is that the water diversion encourages growth of the service industry in the water-receiving areas by supplying water for domestic use. These results imply that the sectors with more value-added may benefit better from the water diversion.
HIGHLIGHTS
The approach of Difference-in-Differences is used to examine the economic effects of water diversion.;
After water diversion, the economic status in the areas that receive water increased.;
By providing water, the water diversion supports the service sector in the water-receiving prefectures.; |
| first_indexed | 2024-04-24T07:35:09Z |
| format | Article |
| id | doaj.art-6e301f4de5de4a1c97f86e25b0a47e36 |
| institution | Directory Open Access Journal |
| issn | 1606-9749 1607-0798 |
| language | English |
| last_indexed | 2024-04-24T07:35:09Z |
| publishDate | 2024-02-01 |
| publisher | IWA Publishing |
| record_format | Article |
| series | Water Supply |
| spelling | doaj.art-6e301f4de5de4a1c97f86e25b0a47e362024-04-20T06:38:12ZengIWA PublishingWater Supply1606-97491607-07982024-02-0124231332810.2166/ws.2024.013013The economic impact of water diversion: evidence from ChinaHang Xu0Rui Yang1 College of Economics and Management, Northwest A&F University, Yangling 712100, China College of Humanities and Development Studies, China Agricultural University, Beijing 100193, China Many areas in the world are facing the problem of sustainable development due to water scarcity. One of the reasons for this issue is that the regional distribution of water resources is inequitable worldwide. The water diversion is a potential way to ease the water shortages as a result of the unequal distribution of water resources. As is well known, the South-to-North Water Diversion Project (SNWDP) in China is the largest project of water diversion over the world, which is transferring water resources between two river basins. This paper analyses the economic impact of the water diversion with the example of the SNWDP. It was found that the economic status of the areas affected by the SNWDP increased, relative to other regions. This result is robust when estimating with alternative outcome measure or subsample, and with alternative methods. The mechanism analysis shows that the main reason for the increased economic development level is that the water diversion encourages growth of the service industry in the water-receiving areas by supplying water for domestic use. These results imply that the sectors with more value-added may benefit better from the water diversion. HIGHLIGHTS The approach of Difference-in-Differences is used to examine the economic effects of water diversion.; After water diversion, the economic status in the areas that receive water increased.; By providing water, the water diversion supports the service sector in the water-receiving prefectures.;http://ws.iwaponline.com/content/24/2/313chinadifference-in-differenceseconomic impactsustainable developmentwater diversion |
| spellingShingle | Hang Xu Rui Yang The economic impact of water diversion: evidence from China Water Supply china difference-in-differences economic impact sustainable development water diversion |
| title | The economic impact of water diversion: evidence from China |
| title_full | The economic impact of water diversion: evidence from China |
| title_fullStr | The economic impact of water diversion: evidence from China |
| title_full_unstemmed | The economic impact of water diversion: evidence from China |
| title_short | The economic impact of water diversion: evidence from China |
| title_sort | economic impact of water diversion evidence from china |
| topic | china difference-in-differences economic impact sustainable development water diversion |
| url | http://ws.iwaponline.com/content/24/2/313 |
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