Strategic Research On Cyclic Utilization For China’s Industrial Water Conservation

Circular economy, with low consumption, low emission, high benefit as its basiccharacters, conforms to the concept of sustainable development of economic, which isa radical reform of traditional growth pattern of mass production, mass consumptionand mass waste. The recycling of water resources is the important content ofindustrial water saving, and it is the inevitably choice for our country to follow a newpath of industrialization, alleviate the pressure of water resources and realizesustainable development. Based on that background, the purpose of this paper is toanalyze the practical problems of China’s industrial water recycling at the presentstage, especially the "circular diseconomy" issue, to build China’s industrial waterrecycling strategy, and ultimately to put forward the feasible countermeasures andsuggestions.First of all, according to the "3R" principle of circular economy, the industrialcirculating water system is defined from the angle of system theory, with theindustrial water circulation mode uniformly elaborated from three levels, which isenterprise, industrial park and area. Secondly, based on the field survey ofhigh-water-usage enterprises in Shaoxing, this paper explore the formationmechanism of the "circular diseconomy"issue by the method of logic andmathematical model, from the perspective of the industrial water system’s cost.Thirdly, on the basis of the theoretical research, the panel data model is constructed,using GMM system method. It empirically tests the influence of the cost, regionaleconomic development level, industrial structure and water resource endowment onChinese industrial water circulation level, using30provincial regions data in2007-2012, from two aspects: national and regional, which provides some practicalguiding significance for recycling strategies of industrial water-saving. Through thetheoretical analysis and empirical research, the main conclusions are made as follows:(1) Defining the theoretical definition of the industrial circulating water system’sconcept, feature and function, this paper suggests that industrial water system in different sizes is unified under the "3R" principle, which can be regarded as as awhole mode while being studied, and its essence is to improve the utilization of waterresources.(2) The issue of "circular diseconomy" is the main problem of presentChina’s industrial water circulating, which should be studied as the overall strategictarget. The main cause of that is the high cost of water circulation model, specificallythe high construction cost with the limited advantages of regulatory cost and watercost, which is proved by the demonstrating study. Technology and institution shouldbe used as two strategic tools to reduce the costs.(3) Besides the private net income ofthe micro subject, the social net income should also be considered in the strategy,namely the diseconmy issue on the macro level.(4) Districts shortage of waterresources have greater incentives to raise the level of industrial water circulating,because its water element cost accounts for a bigger proportion of its overall cost dueto its high water-consumption industries and higher water price.Based on the above conclusions, the industrial circulating water level is dividedinto three kinds of situations from the angles of enterprise and society. This study putsforward the corresponding strategy content of Chinese industrial water recycling, withthe reduction of water system cost as the focus, with water circulation technologyinnovation as the breakthrough point, with institutional innovation as safeguard.