Direct or Spillover Effect: The Impact of Pure Technical and Scale Efficiencies of Water Use on Water Scarcity in China

Abstract

The spatial relationship between water use efficiency and water scarcity has been widely discussed, but little attention has been paid to the impact of the pure technical and scale efficiencies of water use on water scarcity. Using input-oriented data envelopment analysis (DEA) and panel spatial Durbin models (SDM), the direct and spillover effects of different water use efficiencies on water scarcity from 2007 to 2016 in China were examined at the regional scale. The results show that the water use pure technical efficiency had significantly negative direct effects on water scarcity; however, the water use scale efficiency did not have a similar effect. The improvement in water use pure technical efficiency in one region could aggravate the water scarcity in neighboring regions through spatial spillover effects, but the same effect was not observed between the water use scale efficiency and water scarcity. Finally, we propose solutions to improve the water use efficiency to reduce the water scarcity.