Exploring solutions to alleviate the regional water stress from virtual water flows in China

China has long faced an uneven distribution of physical water resources, which has been further exacerbated by the virtual water transfers embodied in the interregional trade. To alleviate such unfavorable influences of interregional virtual water flows on regional water scarcity, this paper first combined a multi-regional input-output model and a structural decomposition analysis to identify the major driving forces behind the changes in interregional virtual water flows from 2002 to 2012, and then conducted a scenario analysis to explore solutions for sustainable water resource management in China. Results indicated that the virtual water outflows from water-deficient developing regions (Northwest and Northeast) to water-abundant developed regions, such as East Coast and South Coast, have been increasingly intensified from 2002 to 2012. During the period, the final demand predominated the increase of virtual water transfers, while the improvement of water use efficiency dominated the decline in virtual water flows from 2002 to 2012. Results from the designed scenarios indicated that the negative impacts of interregional virtual water flows on the water stress can be effectively relieved, indicating the high priority of regional water use efficiency improvement, especially in water-starved regions.