Can the water-saving potential of industrial sectors be quantified? An empirical approach applied on chemical and steel industries of Tianjin and Zhejiang provinces, China.

Although there has been increasing research on water saving in China's industrial sector, with the proposal of different methods and enriching perspectives, not much has been studied about the sector's water-saving potential (WSP), especially in terms of a quantitative analysis. In this paper, a quantitative WSP model is proposed based on (a) economic costs minimization, (b) diffusion of water-saving technologies, (c) progressive water price policies, and (d) data availability. To transform exogenous variables into endogenous ones, we assumed technology depreciation and designed a water trading mechanism in a policy-limited scenario. By analysing the data of 2015, the WSP of chemical and steel industries in Tianjin was estimated as 16.128 MCM and 1.914 MCM with technology penetration and strict progressive water prices, while the WSP in Zhejiang province was estimated as 17.541 MCM and 3.108 MCM with the same level of technology penetration. This study could be a reference point for further research on evaluation of WSP of other industrial sectors and guide governments in drafting water-saving policies.