Water use and wastewater discharge of industrial sector in China

Problem of water scarcity has been increasingly severe in China. Though industrial sectors play important role for the rapid economic growth, and they consumes water and discharge wastewater. The purpose of this study is to examine the efficiency of water use and wastewater discharge in comparison with those of other inputs and production output in Chinese industry. Measuring efficiency of each input and output factor from 2002 to 2008, we find the average inefficiencies of industrial water use and industrial wastewater discharge are higher than those of capital, labor, and production output in China. In addition, the productivity levels to save water in the water shortage areas are not higher compared to the others. The water use inefficiency has a high dispersion especially in the regions where the amounts of water resources per capita is less than 3000 cubic meter.