How water resource management policies shape the coupled coordination development of the water-energy-food nexus: Evidence from the dual pathways of taxation and property rights

Abstract

Efficient management of water resources is vital for the sustainable development of the Water-Energy-Food (WEF) nexus, as water is a critical input in both energy and food production. Regulatory policies in the water resources sector may affect the allocation and utilization structure of water resources in energy and food production, influencing the coordinated development of the WEF nexus. This paper utilizes provincial data from China covering the period 2005 to 2022 to analyze how water resource management policies, particularly those related to taxation and property rights, influence the coordinated development of the WEF nexus. The results show that policies through the taxation and fees pathway can significantly promote the coupled coordination development of WEF nexus, specifically by optimizing the water consumption structure of energy and advancing water-saving irrigation technology in agriculture to enhance WEF nexus coordination. In contrast, the effectiveness of policies through the property rights pathway is relatively limited. Further research reveals that this positive impact is more pronounced in regions with richer water resources, higher economic development levels, a higher proportion of primary industry and greater technological innovation vitality. This paper provides empirical evidence for decision-makers to optimize water resource management policies, thereby fostering a more sustainable and resilient WEF nexus, enhancing resource security, and promoting coordinated sectoral development.

Keywords: Difference-in-differences model; Water resource fee-to-tax reform; Water rights reform; Water-energy-food nexus.