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

• Published in: Technological forecasting & social change 2022-11, Vol.184, p.121994, Article 121994
• Main Authors: Sheng, Jichuan, Qiu, Wenge
• Format: Article
• Language: English
• Subjects: Employment; Income; Industrial development; Spatial spillover; Water-use technical efficiency
• ISSN: 0040-1625; 1873-5509
• DOI: 10.1016/j.techfore.2022.121994

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. •The spatial spillover effect of WUTE on income is scrutinised.•Increasing WUTE can increase income, bringing water blessings.•Increasing WUTE improves the income of adjacent regions through spatial spillovers.•Increasing WUTE promotes industrial development, thereby increasing income.•Increasing WUTE promotes employment and then increases income.