Water consumption assessment in Asian chemical industries supply chains based on input-output analysis and one-way analysis of variance.

Abstract

Chemical sector contributes extensively to the economic development of countries, however, it is one of the main water-consuming industries. Considering that the corporate water accounting along complete SCs can help companies in improving their sustainable water managements along their value chains, this paper aims to study the water consumption in the entire supply chain of the chemical industry from a multi-regional input-output perspective. In this regard, six Asian countries including Indonesia, Taiwan, China, Japan, South Korea and India are selected to be studied based upon the availability of their data. In the following, the direct water consumed by themselves and the indirect water used by their suppliers are measured for each country using input-output analysis method. Moreover, to draw on the conclusions of selected Asian countries, the amount of consumed water in their supply chains is compared with each other using one-way analysis of variance method. The results from input-output analysis show that the indirect water consumption in the chemical SCs of Indonesia, China, India and South Korea are 20.66, 4.62, 1.37 and 1.08 times greater than their direct water use, while the indirect water consumption for Japan and Taiwan are 0.73 and 0.13 times less than their direct values. The final results from one-way analysis of variance indicate that direct and indirect amount of water consumptions in the chemical supply chains of the selected countries do not follow the same trend over 15 years. However, India and China are the top two countries in terms of both direct and indirect amounts of water consumption due to their higher population. This study presents valuable information for authorities and policymakers in terms of proper water consumption management in chemical industry and other industrial sectors. In this matter, technology-based or production-related actions are beneficiary for affecting direct water use, while consumption-based or end-use actions are more appropriate for affecting indirect water consumption.