Growing water scarcity is one of the central challenges for sustainability in China, given its burgeoning industry and huge population, especially in the arid and semi-arid inland river basin where precipitation is very limited. Industrial transformation is an important engine of economic growth, which is required to be implemented by governments at all levels in China. Economic models have generally been applied to evaluate the effects of economic policy change (e.g., industrial transformation or adjustment of price) on the allocation of production factors. The computable general equilibrium (CGE) model is an effective tool to reallocate the primary factors across sectors for different industrial transformation scenarios. In this research, we first briefly introduced the principles and structure of the CGE model, which embeds water resources as a primary factor of production. Then we chose Zhangye as an example to evaluate the impacts of industrial transformation on water consumption under three designed scenarios with the water-embedded CGE model. Simulation results showed that there will be considerable water saving benefit from industrial transformation when the output value of secondary industry and tertiary industry increases and the contribution of the planting sector to the total output value decreases. Finally, we put forward a scheme that can improve water utilization efficiency in policy options.

This study focuses on the potential impacts of large-scale land use and land cover changes (LUCC) on surface temperature from a global perspective. As important types of LUCC, urbanization, deforestation, cultivated land reclamation, and grassland degradation have effects on the climate, the potential changes of the surface temperature caused by these four types of large-scale LUCC from 2010 to 2050 are downscaled, and this issue analyzed worldwide along with Representative Concentration Pathways (RCPs) of the Intergovernmental Panel on Climate Change (IPCC). The first case study presents some evidence of the effects of future urbanization on surface temperature in the Northeast megalopolis of the United States of America (USA). In order to understand the potential climatological variability caused by future forest deforestation and vulnerability, we chose Brazilian Amazon region as the second case study. The third selected region in India as a typical region of cultivated land reclamation where the possible climatic impacts are explored. In the fourth case study, we simulate the surface temperature changes caused by future grassland degradation in Mongolia. Results show that the temperature in built-up area would increase obviously throughout the four land types. In addition, the effects of all four large-scale LUCC on monthly average temperature change would vary from month to month with obviously spatial heterogeneity.