Application of virtual water trade theory in interregional grain allocation and transportation in China

Abstract

China was partitioned into eight regions, and the virtual water flow due to regional grain allocation and transportation among these regions was calculated in 2008 based on virtual water and virtual water trade theories. Then, we analyzed the relations between virtual water trade structure and water resources utilization. Results show that the grain output regions in China were Northeast, Huang-Huai- Hai and the Middle-Lower Yangtze regions, where the grain outputs were 5.3×10⁷t, 2.8×10⁷t, and 5.6×10⁶t respectively and the corresponding virtual water exports were 5.55×10¹⁰m³, 2.78×10¹⁰m³, and 0.53×10¹⁰m³, respectively. There were large amounts of virtual water import in the Southern, Southeast and Northern China, and the sum of the three region was up to 7.0×10¹⁰m³. The whole country saved about 3.05×10¹⁰m³ water resource as a result of the well correspondence between structure of grain allocation and transportation and the comparative advantage of regional water utilization efficiency; but the virtual water export and import conditions in each region mismatched the Endowment of Resources Principle when considering water resource condition. The distribution of national grain production and water resource was not suited with each other. The Chinese government should proposed corresponding measures.

Key words: Endowment of resources, food security, grain allocation and transportation, regional water transfer, virtual water.