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Application Of The Input Output Model

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92 Application of the input-output model has been common in recent virtual 93 water studies. The method has enabled a systematic assessment of virtual water flows 94 across all the sectors in an economic system (Guan and Hubacek, 2007; Lenzen, 2009; 95 Wang and Wang, 2009; Zhao et al., 2010; Zhang et al., 2011; Lin et al, 2012). These 96 studies have found that virtual water flows associated with the trade of goods and 97 services often do not coincide with the regional water endowments. So far, the 98 literature conducting a comprehensive analysis incorporating both real and virtual 99 water into consideration is rare. 100 This paper investigates the roles of real water and virtual water transfers in 101 …show more content…

119 China-IRIO 2007 consists of 30 administrative entities including 22 provinces, 4 120 municipalities and 4 autonomous regions in mainland China. Hong Kong, Macao, 121 Taiwan and Tibet are not included due to data unavailability. For simplicity, these 30 122 administrative entities are all called provinces in this study. The detail of the standard 123 structure of China-IRIO 2007 can be found in Zhang et al. (2011). Considering the 124 sector concordance between interregional input-output tables and the data for sectoral 125 direct freshwater use, the 60 sectors in the tables are aggregated into 29 sectors in this 126 study (Table 1). 127 In the analysis of virtual water trade pattern, the 30 provinces are classified into 128 eight regions taking into consideration their geographic locations, the river basins they 129 pertain to, and the economic clusters they are involved in. The geographic distribution 130 of the eight regions and information regarding their water resources conditions are 131 demonstrated in Figure 1. 132 Data for virtual water accounting and water transfer from SNWDP 133 In this study, the data for direct water use coefficient (DWUC), the amount of 134 direct water intake to produce one monetary unit of output, are obtained based on the 135 Sectoral Water Requirement Quotas of the 30

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