Identifying the critical transmission sectors with energy-water nexus pressures in China's supply chain networks

Abstract

Energy and water resources are drawing increasing attention in China as indispensable elements of economic development and social stability. Energy and water are interconnected in economic systems. Although the nexus between them has been widely studied, few insights can be acquired by the intermediate transmission pressures across supply chains. Combing betweenness-based method and multi-regional input-output (MRIO) analysis, we, in this study, identified critical transmission sectors and main driving factors resulting from the usage structure. In details, we found that Metallurgy (S14) in Shandong, Henan, Jiangxi, Anhui, Sichuan, Zhejiang, Hunan, and Jiangsu, Electricity and hot water production and supply (S22) in Beijing and Guizhou, and Nonmetal production (S13) in Henan are the most critical transmission sectors bearing energy-water nexus pressures, ranking at the top 100 in China's supply chain networks. Roughly, the usage structure was mainly dominated by fixed capital formation, urban household consumption and trade export, and therefore should be given priority to mitigate environmental pressures. Our study provides a novel perspective of sector-specific and province-typical policy recommendations for mitigating energy-water nexus pressures in China's supply chain networks. Show more