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Water-use technical efficiency and income: Evidence from China's South-North Water Transfer Project

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  • Sheng, Jichuan
  • Qiu, Wenge

Abstract

Improvements in water-use technical efficiency can alleviate water scarcity, which may help alleviate poverty caused by it. Therefore, it is necessary to understand the complex relationship between water-use technical efficiency, income, and even poverty. This article explores the spatial spillover effect of water-use technical efficiency on income through the case of China's South-North Water Transfer Project. It also critically examines the role of industrial development and employment in the impact of water-use technical efficiency on income. The findings demonstrate that increasing water-use technical efficiency can increase income, bringing “water blessings.” Moreover, increasing water-use technical efficiency also improves the income of adjacent regions through spatial spillovers. In addition, increasing water-use technical efficiency promotes industrial development, thereby increasing income through the positive moderation of government expenditure. Finally, increasing water-use technical efficiency also promotes employment and then increases income; however, increasing population size weakens WUTE's impact on employment. Beyond the current understanding of the relationship between water-use technical efficiency and income, this article provides another empirical study that contributes to profoundly understanding the spatial effect and internal mechanism of this relationship.

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  • Sheng, Jichuan & Qiu, Wenge, 2022. "Water-use technical efficiency and income: Evidence from China's South-North Water Transfer Project," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    • Handle: RePEc:eee:tefoso:v:184:y:2022:i:c:s0040162522005157
    DOI: 10.1016/j.techfore.2022.121994
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