Abstract
Economies that depend on natural resources can experience a resource drag effect when economic growth is limited by constraints on the availability of those resources. Therefore, this study uses panel data and the improved Solow growth model to explore the resource drag effect on China’s regional economic growth from 1987 to 2017 and makes innovative contributions to address these four gaps in the previous literature: the resources gap, the consistent measurement gap, the regional gap, and the temporal gap. The empirical results indicate that the resource drag effect reduced China’s overall annual economic growth by 0.58% during the study period, with reductions of 1.07%, 0.29%, 0.79%, and 0.46% in the Eastern, Western, Central, and Northeastern regions, respectively. In the meantime, the resources drag effect changed in individual regions and across regions. The results on energy drag are most notable. Policies such as “West-to-East Electricity Transmission” and “West-to-East Gas Transmission” promoted economic growth of the Eastern and Western Region, facilitating continued growth in both regions and attracted the return of labor to the Western region. The results indicate that the policies such as west-to-east energy transfer for helping to even out the economic growth conditions in different regions. Labor force mobility has also been important to alleviate resource dependence of agricultural production in Central regain, while other regions have managed to continually grow through improvements in inefficiency. Also, growth in some regions/provinces continues to depend upon increases in water, land, and energy availability and export. This will become increasingly problematic as the social prices of these inputs rise to account for environmental damage. Therefore, the government should adjust the industrial structure of each region to optimize use of resource endowments, alleviate dependence on natural resources, and achieve sustainable economic development.
Similar content being viewed by others
Data availability statement
The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.
References
An M, Butsic V, He WJ, Zhang ZF (2018) Drag effect of water consumption on urbanization—a case study of the Yangtze River Economic Belt from 2000 to 2015. Water 10:1115. https://doi.org/10.3390/w10091115
Bai YY, Zhang TA, Zhai YJ, Shen XX, Ma XT, Zhang RR, Ji CX, Hong JL (2021) Water footprint coupled economic impact assessment for maize production in China. Sci Total Environ 752:141963. https://doi.org/10.1016/j.scitotenv.2020.141963
Bruvoll AG, Glomstrd S, Vennemo H (1999) Environmental Drag: evidence from Norway. Ecol Econ 30(2):235–249. https://doi.org/10.1016/S0921-8009(98)00115-3
Cui Y (2007) “An Analysis of Drag” of land resources in China's economic growth. Econ Theory Business Manag 11:32–37. https://doi.org/10.3969/j.issn.1000-596X.2007.11.007
Dasgupta P, Heal G (1974) The optimal depletion of exhaustible resources. Rev Econ Stud 41:3–28. https://doi.org/10.2307/2296369
Fahad S, Wang J (2018) Farmers’ risk perception, vulnerability, and adaptation to climate change in rural Pakistan. Land Use Policy 79:301–309
Fahad S, Wang J (2020) Climate change, vulnerability, and its impacts in rural Pakistan: a review. Environ Sci Pollut Res 27-2:1334–1338
Fu C, Zhan LQ (2012) Research on the relationship between economic growth and natural resources in Central China. TheoreticalMonthly, 11: 5-10. DOI: https://doi.org/10.14180/j.cnki.1004-0544.2012.11.036
Lei M, Yang CM, Wang DD (2007) Quantitative analysis of energy shortage constraints in China's economic growth. Energy Technol Manag 5:101–104. https://doi.org/10.3969/j.issn.1672-9943-B.2007.05.026
Li Y, Shen KR (2010) Energy constraints and China's economic growth—metrology analysis based on energy “Tail Effect”. Econ Issues 32(7):16–20. https://doi.org/10.16011/j.cnki.jjwt.2010.07.004
Liu YB, Chen F (2007) Analysis on resource consumption drag of China's urbanization. China Indust Econ 11:48–55. https://doi.org/10.19581/j.cnki.ciejournal.2007.11.006
Liu YB, Huang MY (2015) “Resource Drag” and “Resource Curse” in the process of urbanization—based on panel data analysis of 27 coal cities in China. East China Econ Manag 29(1):55–61. https://doi.org/10.3969/j.issn.1007-5097.2015.01.010
Liu C, Zhu DC (2012) Research on the influence of resource limitation on economic growth in Weibei Area of Anhui Province—based on the perspective of resource growth drag. J Inner Mongolia Agric Univ Soc Sci Ed 14(2):44–46. https://doi.org/10.3969/j.issn.1009-4458.2012.02.016
Liu XH, Yuan HY, Hong L, Zhou ZY, Yin ZJ (2002) Research on Stochastic forecast model of water resources use. China Rural Water and Hydropower 12:70–72. https://doi.org/10.3969/j.issn.1007-2284.2002.12.029
Liu YB, Yang XM, Zhou RH, Duan YF, Yao CS (2011) A comparative analysis of resources consumption drag of the Central Region of China. Res Sci 33(9):1781–1787. https://doi.org/10.1039/C3NJ00797A
Ma WJ, Opp C, Yang DW (2020) Spatiotemporal supply-demand characteristics and economic benefits of crop water footprint in the semi-arid region. Sci Total Environ 738:139502. https://doi.org/10.1016/j.scitotenv.2020.139502
Muller M (2015) The 'Nexus' as a step back towards a more coherent water resource management paradigm. Water Alternatives 8:675–694 https://www.researchgate.net/publication/272019230
Nordhaus WD (1992) Lethal model 2: the limits to growth Revisited. Brook Pap Econ Act 2:1–59. https://doi.org/10.2307/2534581
Romer D (2001) Advanceed Macroeconomics (Second Edition). Shanghai University of Finance and Economics Press, The McGraw- Hill Companies.
Schwert GW (1989) Testing for unit roots: A Monte Carlo investigation. J Bus Econ Stat 7:147–160
Shen KR, Li Y (2010) An analysis of the energy bound on economic growth. Ind Econ Res 2:1–8. https://doi.org/10.13269/j.cnki.ier.2010.02.003
Sun CZ, Liu YY, Zhang L (2010) Analysis on the spatial-temporal matching of crops virtual water versus resources-environment-economy factors in China. Res Sci 32(3):512–519 DOI: CNKI:SUN:ZRZY.0.2010-03-021
Wan YK, Dong SC, Wang YN, Mao QL, Liu JJ (2012) Damping effects of water and land resources on economic growth in Beijing. Res Sci 34(3):475–480 DOI: CNKI:SUN:ZRZY.0.2012-03-014
Wang JT (2010) Study on the land resource growth drag of in China's regional economic growth. Econ Geogr 30(12):2067–2072. https://doi.org/10.15957/j.cnki.jjdl.2010.12.024
Wang YB, Wu PT, Sun SK, Cao XC, Liu J (2015) Impact of virtual water flows of grain on water resources and regional economy in China. Transac Chinese Soc Agric Machine 46(10):208–215. https://doi.org/10.6041/j.issn.1000-1298.2015.10.027
Xie SL, Wang W, Xue JB (2005) Analysis of the drag effect of water and land resources in China's economic development. Manag World 7:22–25 DOI: CNKI:SUN:GLSJ.0.2005-07-003
Xu KN, Wang J (2006) An empirical study of a linkage between natural resource abundance and economic development. Econ Res J 041(001):78–89 DOI: CNKI:SUN:JJYJ.0.2006-01-008
Xu J, Zhou M, Li H (2018) The drag effect of coal consumption on economic growth in China during 1953–2013. Resour Conserv Recycl 129:326–332. https://doi.org/10.1016/j.resconrec.2016.08.027
Xue JB, Wang W, Zhu JW, Wu B (2004) Analysis of the drag effect of China's economic growth. J Financ Econ 30(9):5–14. https://doi.org/10.16538/j.cnki.jfe.2004.09.001
Xue JB, Zhao MZ, Zhu YX (2017) Growth drag, factor contribution and resource redundancy: analysis on agriculture. Technol Econ 36(11):65–74 DOI: CNKI:SUN:JSJI.0.2017-11-010
Yan MD, Song XY, Zhang WH (2013) Analysis of virtual water of selected agricultural products in Chongqing, China. Res Environ Yangtze Basin 22(Z1):6–10 DOI: CNKI:SUN:CJLY.0.2013-S1-002
Yang Y, Wu CF, Luo YH, Wei SC (2007) A research about “Growth Drag” of Chinese water-land resource to the economy. Econ Geogr 27(4):529–532. https://doi.org/10.15957/j.cnki.jjdl.2007.04.012
Zhang J, Wu GY, Zhang JP (2004) The estimation of China's pro-vincial capital stock: 1952—2000. Econ Res J 10:35–44. DOI: CNKI:SUN:JJYJ.0.2004-10-004
Zhang Y, Liu WX, Zhao MJ (2020) The drag effect of water resources on China’s regional economic growth: analysis based on the temporal and spatial dimensions. Water 12(1):266. https://doi.org/10.3390/w12010266
Funding
This research was funded by the National Soft Science Project of State Forestry and Grassland Administration (Grant No. 2019131039), The Key Special Funds of Ministry of Agriculture and Ministry of Finance (Grant No. CARS-07-F-1), The Key Project of Six Industrial Research Institutes of Northwest Agricultural and Forestry University (Grant No. Z221021601), and China Scholarship Council (202006300062).
Author information
Authors and Affiliations
Contributions
Yao Zhang: Conceptualization, Methodology, Writing - original draft, Software, Writing - review & editing, Visualization. Wenxin Liu: Investigation, Editing, Formal analysis. Sufyan Ullah Khan: Data curation, Writing - review & editing, Formal analysis. Brent Swallow: Grammar, review. Chaohui Zhou: Data curation. Minjuan Zhao: Supervision and funding acquisition.
Corresponding author
Ethics declarations
Ethical approval
This is an observational study. We confirmed that no ethical approval is required.
Consent to participate
Not applicable.
Consent to publish
Not applicable.
Competing interests
The authors declare that they have no competing interests.
Additional information
Responsible Editor: Ilhan Ozturk
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Supplementary Information
Supplementary data to this article is attached.
ESM 1
(DOCX 35 kb)
Rights and permissions
About this article
Cite this article
Zhang, ., Liu, W., Khan, S.U. et al. An insight into the drag effect of water, land, and energy on economic growth across space and time: the application of improved Solow growth model. Environ Sci Pollut Res 29, 6886–6899 (2022). https://doi.org/10.1007/s11356-021-16053-0
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-021-16053-0