Evaluating Economic Benefits of Water Diversion from Yangtze River to Taihu Lake in China: A Case Study

Abstract

Project of water diversion from the Yangtze Rive to the Taihu Lake significantly improves water environment of the lake and brings obvious economic benefits for surrounding regions. Using grey relation technique, this paper explores the relationship between water use and industrial development in Huzhou. An analytical framework on benefits of water supply to Huzhou city from project of water diversion from Yangtze River to Taihu Lake is examined, including: (1) the value-added of water supply on the project are divided into four parts according to the characteristics of Hang-Jia-Hu Plain area. (2) The utilization ratio of water diversion is defined based on the features of water resources. (3) The water supply effects on industries and residents' living are analyzed using partition coefficient method in Huzhou city.