Research on the Driving Effect of Industrial Structure

Rationalization on the Time Dimension Difference of Regional Total

Water Consumption: Taking Yangtze River Economic Belt as an

Example

Haolin Yang

and Ziyang Qin

School of Business, Hohai University, Changzhou, Jiangsu, 213022, China

Keywords: Industrial Structure Rationalization, LMDI, Time Dimension, Regional Total Water Consumption, Yangtze

River Economic Belt.

Abstract: The coordination between output structure and factor endowment is an important focus on studying the

resource utilization and decomposition based on the effect of industrial structure. Decompose the effect of

industrial structure that affects the time-dimensional difference of the total amount of regional water

consumption into rationalization effect of industrial structure, advanced effect of employment structure,

industrialization income effect and extraction effect of tertiary industry. Constructing the LMDI

decomposition expansion model of the time-dimensional difference of the total amount of regional water

consumption, and mainly exploring the specific driving path and internal mechanism of the rationalization

of industrial structure. Taking the Yangtze River Economic Belt as an example, it can be concluded

that :(1)Rationalization of Industrial Structure is an important driving force to suppress the increase of water

consumption in Economic Belt from 2000 to 2020.It is suggested that provinces and cities in the Yangtze

River Economic Belt should adhere to the “ water saving priority ” and comprehensively optimize the

allocation of water resources among the three industries.(2)Since 2010, the effect of Rationalization of

Industrial Structure on the rise of the total amount of water consumption has declined year by year. At

present, the Rationalization of Industrial Structure has reached a high level, and it is weak in restraining the

increase of total amount of water consumption. It is suggested that we should improve the knowledge

content and innovation density of the three industries, and find a breakthrough point in comprehensively

improving the industrial quality.

1 INTRODUCTION

1.1 Research Background

With the continuous growth of China's economic

aggregate and the continuous expansion of

population scale, the mismatch between water

resource endowment and economic development

demand has become the main factor restricting the

coordinated development of China 's economy,

society and ecology. The relationship between water

resource endowment and output structure needs to

be coordinated as soon as possible. China's 14th

Five-Year Plan for Water-saving Society

https://orcid.org/0000-0001-8547-9943

https://orcid.org/0000-0002-3815-2427

Construction emphasizes :In the new stage of

development, we should adhere to the " to use

Yellow River water resources as its capacity permits

" and resolutely curb unreasonable water demand ;

to implement major regional strategies such as the

development of the Yangtze River Economic Belt

and the integrated development of the Yangtze River

Delta, promote ecological priority and green

development, and require the implementation of the

most stringent water resources management system

to save water and expand development space. The

key to improving the efficiency of water resources

utilization and the quality of economic development

lies in optimizing the allocation of water resources

among industries and promoting the transformation

of water use from extensive and inefficient to

economical and intensive. The optimal intensive

Yang, H. and Qin, Z.

Research on the Driving Effect of Industrial Structure Rationalization on the Time Dimension Difference of Regional Total Water Consumption: Taking Yangtze River Economic Belt as an

Example.

DOI: 10.5220/0011359600003440

In Proceedings of the International Conference on Big Data Economy and Digital Management (BDEDM 2022), pages 941-946

ISBN: 978-989-758-593-7

941

degree of water resources for economic growth

depends on the degree of industrial structure

optimization and upgrading. The rationalization of

industrial structure is closely related to the total

amount of regional water consumption.

Digital economy has become a new driving force

for the optimization and adjustment of industrial

structure. Driven by digitalization, the improvement

of the coupling degree of the structure of factor input

and output is the main manifestation of the

upgrading of industrial structure and the key to

achieving high-quality development of China's

economy. Rationalization of industrial structure

refers to the aggregation quality among industries,

which reflects the degree of effective utilization of

resources and coordination among industries and is a

measure of the coupling degree of the structure of

factor input and output. According to the data of the

National Bureau of Statistics, the ratio of the product

of the output value of the tertiary industry and the

employment population of the secondary industry in

China to the product of the output value of the

secondary industry and the employment population

of the tertiary industry in China decreased from 0.44

in 2000 to 0.10 in 2020, indicating that the coupling

degree of the structure of input and output of China '

s industrial structure factors is increasing. In view of

the operability of the decomposition, the ratio of the

product of China ' s tertiary industry output value

and employment population in the secondary

industry and the product of China' s secondary

industry output value and the tertiary industry

employment population is selected to measure the

rationalization of industrial structure.

1.2 Literature Review

The research on the suitability of resource elements

and industrial structure is an important topic in the

field of resource economics. At present, the research

at home and abroad is mainly based on the following

perspectives: ① Based on elasticity, the suitability

index of water resources and industrial structure is

constructed. Combined with Dagum Gini coefficient

and Kernel density estimation, the temporal and

spatial differences, contribution rate and dynamic

evolution law of suitability change in regional and

sub-regional are revealed (Zhang, 2021). ② Based

on the correlation matching calculation method, the

calculation formula of water deviation coefficient is

constructed. Combined with the structural deviation

coefficient index, the correlation between industrial

structure and water resources consumption structure

is calculated (Gan, 2011). ③According to the time

dimension index decomposition method, the

differences of time dimension of total water

consumption are decomposed into production

intensity effect, effect of industrial structure,

economic scale effect, living intensity effect and

population scale effect by using LMDI-I-Model1

(Ang, 2015), and the effect of industrial structure is

an important factor to suppress the increase of total

water consumption (Zhang, 2019, Zhang, 2020, Nan,

2010).

At present, China ' s economic development

presents the form of industrial structure upgrading.

The existing research results mainly focus on the

driving effect of industrial structure upgrading on

the spatial and temporal differences of regional

water consumption. In view of the transformation of

China 's economy from pursuing rapid growth to

pursuing high-quality development, the impact of

industrial structure on resource utilization should not

only study the upgrading of industrial structure, but

also improve the research on the rationalization of

industrial structure. Facing the new requirements of

China's water-saving society construction planning

in the 14th Five-Year Plan, the effect of industrial

structure is divided into the water-saving technology

effect, the extraction effect of tertiary industry, the

rationalization of the effect of industrial structure,

the employment structure upgrading effect, the

industrialization income effect and the scale effect of

urban population. The specific path and internal

mechanism of the rationalization effect of the

industrial structure on the spatial-temporal

difference of the total water consumption are mainly

explored, and the Yangtze River urban

agglomeration is taken as an example for analysis

(Yao, 2019, Ma, 2014).

2 RESEARCH METHODS

Based on LMDI-I-Model1, considering the various

driving factors that affect the difference of time

dimension of regional total amount of water

consumption, decomposing the industrial structure

effect, constructing the LMDI decomposition

expansion model of time dimension difference of

total water consumption. We mainly calculate the

annual and cumulative contribution of TL, and the

differences within the industry. The variation of total

water consumption from period

1t −

to period

can

be decomposed into:

BDEDM 2022 - The International Conference on Big Data Economy and Digital Management

942

1, 1

1, 1, 1, 1, 1, 1,

1 11111

ln()ln()ln()ln()ln()ln()

tt t t

tot

tt tt tt tt tt tt

ISITLTIP

tttttt

ii iiii

t ttttt

ii iiii

WWW

WWWWWW

ES SI TL TI P

IESSITLTIP

ωω ωωωω

−−

−−−−−−

− −−−−−

Δ=−

=Δ +Δ +Δ +Δ +Δ +Δ

=+ ++++

 

(1)

Weight :

-1 -1 -1

-1

( - ) / (ln - ln ),

)

tt t t t t

ii i i i i

ii i

ttt

iii

WW W W W W

wW W

WWW











≠

(2)

and

−

are total i industrial water

consumption for

1t −

and

periods, respectively；

represents the ratio of total regional water

consumption to GDP in

period,

1,tt

−

represents

water-saving technology effect；

represents the

ratio of regional GDP and tertiary industry added

value in

period.,

1,tt

−

represents tertiary

industry extraction effect；

represents ratio of

regional secondary industry added value to urban

resident population in

period,

1,tt

−

represents

industrialization income effect；

represents the

ratio of the product of the tertiary industry added

value and the second industry employment

personnel and the product of the secondary industry

added value and the tertiary industry employment

personnel in

period,

1,tt

−

represents

rationalization of industrial structure effect ；

represents the number of urban resident population

period,

1,tt

−

represents scale effect of urban

population.

represents the ratio of the

employment population of the tertiary industry to

that of the secondary industry in

period,

1,tt

−

represents employment structure upgrading effect.

3 EMPIRICAL ANALYSIS

3.1 Data Declaration

The ' 14th Five-Year ' water-saving social

construction plan clearly requires that the city should

be determined by water, the land by water, the

people by water, the production by water, and the

population, city and industrial development also

should be rationally planned. The dual control of

total water consumption and intensity is

implemented to promote the transformation of water

use from extensive and inefficient to economical and

intensive. Urban agglomeration is an important

functional area that supports and leads regional

integration and high-quality economic development.

Its high-quality development is closely related to the

efficient utilization of water resources and the

optimization and upgrading of industrial structure.

The Yangtze River Delta urban agglomeration is an

important engine to support and lead the high-

quality and integrated development of the Yangtze

River Economic Belt. As a major national strategic

development region, the Yangtze River Economic

Belt covers 11 provinces and cities including

Shanghai, Jiangsu, Zhejiang and Anhui, etc.

Although it covers only 21.4 per cent of the country,

its population and GDP account for more than 40 per

cent of the country. The data of industrial added

value, total water consumption and employment

population of provinces and cities in the Yangtze

River Economic Belt from 2000 to 2020 are derived

from the statistical yearbook of provinces and cities

and the ' China Water Resources Bulletin'. The

industrial added value data are adjusted according to

constant prices in 2000.

3.2 Analysis on Driving Effect of

Temporal Difference of Total

Water Consumption in Yangtze

River Economic Belt

The water-saving technology effect (I), employment

structure upgrading effect (ES), industrial income

effect (SI), rationalization of industrial structure

effect (TL), tertiary industry extraction effect (TI)

and urban population size effect (P) of the total

water consumption change in the economic belt

from 2000 to 2020 are shown in table 1. The sum of

effects in the same year is denoted as TOT.

Research on the Driving Effect of Industrial Structure Rationalization on the Time Dimension Difference of Regional Total Water

Consumption: Taking Yangtze River Economic Belt as an Example

943

Table 1: Decomposition of Total Water Consumption Difference in Yangtze River Economic Belt from 2000 to 2020.

Year interval SG TS WG WT TOT

2000～2001 20.08 5.19 -96.40 -88.73 -159.86

2001～2002 39.59 -27.50 -163.03 -109.52 -260.45

2002～2003 69.96 -85.39 -272.85 -66.17 -354.46

2003～2004 53.05 -71.46 -165.06 74.19 -109.27

2004～2005 35.33 -25.51 -203.26 -47.39 -240.83

2005～2006 44.80 -44.86 -243.89 4.19 -239.76

2006～2007 33.50 -18.45 -264.41 -52.58 -301.94

2007～2008 18.39 -5.04 -217.31 -22.75 -226.71

2008～2009 18.67 -6.60 -203.64 -37.09 -228.66

2009～2010 74.22 -129.44 -183.18 -61.29 -299.69

2010～2011 46.01 -73.85 -230.46 2.58 -255.72

2011～2012 19.10 -20.43 -374.25 101.18 -274.40

2012～2013 6.28 9.34 -152.06 -70.21 -206.65

2013～2014 -0.78 18.86 -175.33 -108.90 -266.14

2014～2015 -22.98 69.69 -119.48 -119.99 -192.75

2015～2016 -23.96 70.49 -153.57 -110.23 -217.27

2016～2017 -13.90 45.09 -173.49 -25.89 -168.19

2017～2018 -18.03 51.93 -135.52 -82.18 -183.80

2018～2019 -6.28 25.00 -162.69 -27.89 -171.87

2019～2020 0.54 -3.04 -110.83 -135.32 -248.65

Integrated value 393.60 -215.98 -3800.71 -983.98 -4607.07

(1)From 2000 to 2020, the cumulative effect of

industrial structure rationalization was -351.757

billion m³.Rationalization of industrial structure

played an important role in restraining the increase of

total water consumption. The cumulative effect of

industrial structure rationalization from 2000 to 2010

was -222.751 billion m³. The rationalization of

industrial structure was not mature enough before

2010, and its ability to curb the rise in total water use

was unstable. After 2010, the rationalization of

industrial structure tended to be stable, and its effect

of restraining the increase in total water consumption

come to the best and had since weakened year by

year( Seen from Figure 1 ).From 2000 to 2020, the

effect of water-saving technology was the first

driving factor to suppress the increase of total water

consumption. The cumulative effect value of water-

saving technology was -460.707 billion m³,

accounting for more than 50 % of all the above

suppressing effects. It can be seen that the

improvement of water saving technology is

particularly important to suppress the increase of

total water consumption. The water-saving priority

strategy should always be put in the first place in the

construction of water-saving society.

(2)As shown in Figure 1, from 2000 to 2020, the

cumulative effects of employment structure

upgrading and industrialization income on the rise of

total water consumption were 13.698 billion m³ and

343.817 billion m³, respectively. The upgrading of

employment structure and the increase of

industrialization income not only reflect the

improvement of the economic development level of

the Yangtze River Economic Belt, but also indicate

the increase of water demand in the Yangtze River

Economic Belt. The industrialization income effect is

the main driving factor leading to the increase of total

amount of water consumption in the Yangtze River

Economic Belt, and the employment structure

upgrading effect is a secondary driving factor. From

2000 to 2020, the cumulative effect of the tertiary

industry extraction was -17.763 billion m³, which

inhibited the total regional water consumption. From

2000 to 2009, the cumulative effect of tertiary

industry extraction was -5.376 billion m³, which

inhibited the increase of regional water consumption.

However, from 2009 to 2012, the extraction effect

value of tertiary industry turned to positive and began

to promote the increase of total water consumption.

From 2012 to 2019, the extraction effect value of

tertiary industry turned negative again and continued

to restrain the increase of total water consumption.

From 2000 to 2020, the cumulative effect of urban

population size was 175.723 billion m³, and the

BDEDM 2022 - The International Conference on Big Data Economy and Digital Management

944

increase of urban resident population was one of the

important driving factors leading to the increase of

total water consumption. In the early stage, the

family planning policy and other factors led to the

decrease of the total population growth rate and the

decrease of the urban population growth rate. With

the improvement of urbanization level and the

opening of comprehensive two-child policy in the

Yangtze River Economic Belt, the growth rate of

urban resident population is increasing, and the total

water consumption is rising as well. Urbanization

level, fertility policy and inter-provincial population

mobility lead to the fluctuation of urban population

size effect.

Figure 1: Cumulative effect of total amount of water consumption changes in the Yangtze River Economic Belt from 2000

to 2018.

(3) As shown in Figure 2, the cumulative

contribution of the three industrial added values to

TL from 2000 to 2020 was -192.141 billion m³, -

112.900 billion m³ and -46.716 billion m³

respectively. From 2000 to 2010, the contribution of

the three industrial added values to TL showed an

overall increasing trend year by year and reached the

maximum in 2010. From 2010 to 2020, the

contribution of three industrial added value to TL

showed a downward trend on the whole and turned to

inhibitory effect in 2020.This shows that the

continuous decrease in the contribution rate of the

added value of the material industry and the

continuous increase in the contribution rate of the

tertiary industry from 2000 to 2020 have led to an

overall upward trend in the AIS value, which has

effectively inhibited the increase in the total water

consumption of the Yangtze River Economic Belt.

After 2010, due to the comprehensive

implementation of strict water resources management

system, industrial water use efficiency has been

greatly improved. Since then, the contribution of the

three industrial added value to TL has decreased year

by year, and it has been insufficient to restrain the

increase of total water consumption only by

improving the coupling degree of industrial structure.

At this time, it is necessary to pay more attention to

the upgrading of industrial structure on the basis of

the rationalization of industrial structure, improve the

proportion of scientific and technological innovation

in the tertiary industry, and inhibit the increase of

total water consumption by improving the quality of

the tertiary industry and the upgrading of industrial

structure.

4 CONCLUSION

(1) The LMDI decomposition expansion model based

on the differences of time dimension of regional

water consumption focuses on the specific ways and

internal driving mechanism of TL to inhibit the

increase of total amount of water consumption,

which is beneficial to draw policy suggestions on the

adaptation between regional water resources and

rationalization of industrial structure. From 2000 to

2020 , the improvement of water saving technology

has

become

the main driving force to restrain the

Research on the Driving Effect of Industrial Structure Rationalization on the Time Dimension Difference of Regional Total Water

Consumption: Taking Yangtze River Economic Belt as an Example

945

Figure 2: Differences of TL within industry in the Yangtze River Economic Belt from 2000 to 2020.

increase of total water consumption.TL is an

important driving factor to inhibit the increase of

total amount of water consumption and is quite

stable, but its inhibitory effect has weakened year by

year since 2010, and it cannot effectively inhibit the

increase of total water consumption by 2020.It is

worth noting that the tertiary industry extraction

effect also has played a certain role in inhibiting the

increase in total amount of water consumption, but

shows instability. In terms of promoting the increase

of total regional water consumption, the increase of

industrialization income is the main driving factor,

and the improvement of urbanization level is the

secondary factor. At the same time, the upgrading of

employment structure also has a certain role in

promoting the increase of total amount of water

consumption.

(2) After 2010, with the decrease of TL ' s

inhibitory effect on the increase of water

consumption in the Yangtze River Economic Belt,

the contribution rate of the added value of the three

industries to TL has also decreased year by year.

This shows that with the improvement of industrial

structure rationalization, it is more and more

difficult to restrain the increase of total water

consumption only by improving the coupling degree

of input and output of the industrial structure. At this

time, we should improve the scientific and

technological level of the three industries on the

basis of the rationalization of industrial structure,

and comprehensively improve the quality of the

three industries.

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