The measurement and analysis of total-factor water efficiency in industry of China

In this paper, we describe the development of a four-stage data envelopment analysis (DEA) model to resolve total-factor water efficiency (TFWE) into total-factor water managerial efficiency (TFWME) and total-factor water environmental efficiency (TFWEE). We conducted empirical analysis of the TFWE in the provincial industry of China for the years 2001-2012. The research showed that the overall TFWE was still at a lower level in the industry of China and the water saving potential was approximately 30% to 40% of the water consumption. Suggested reasons for the lower observed water efficiency include inefficient water resource management and poor environments. At present, improvements in water efficiency mainly depend on improvements in the external environment, and there is a lack of motivation for enhancing the internal water managerial efficiency. The TFWE, TFWME and TFWEE values showed obvious regional characteristics, where eastern China was leading in water efficiency and northeastern China was regressing. The key factors that were determined to affect the regional TFWEE included the industrial structure, wastewater treatment capacity, and technology improvement level and water price. To improve the respective regional water efficiencies, Beijing, Tianjin, Shanghai and Hainan should focus on improving industrial water resource management; Guangdong, Guizhou, Henan and Ningxia should focus on optimizing their external environment and Hebei, Shanxi, Jilin and other regions should improve water resource management and the environment.