Shifting from Production-Based to Consumption-Based Nexus Governance: Evidence from an Input-Output Analysis of the Local Water-Energy-Food Nexus

The nexus approach is a promising method used to address issues regarding environmental dilemmas. However, effective consumption-based and production-based nexus governance strategies are not well understood. Using data envelopment analysis and China's provincial data for 2017, this study analysed the input-output efficiency of the water-energy-food nexus by considering production-based intensity, consumption-based intensity, and the quantity index system. The results show that policies involving consumption-based intensity metrics can be more efficient, and the efficiency of both production-based intensity (0.482) and consumption-based intensity (0.682) are much higher than the efficiency of the quantity (0.378) index system. The results also indicate that province-specific consumption-based governance strategies are crucial for 30 provinces in China. Finally, three policy directions for nexus governance in China are proposed, namely, shifting policy attention from production-based governance to consumption-based governance, focusing intensity metrics on scale efficiency and aiming quantity metrics on pure technical efficiency, and localizing province-specific management strategies. This paper compares consumption-based and production-based nexus approaches, and the results indicate that a call for consumption-based approaches in future nexus modelling and governance is appropriate. This paper also has implications for China's nexus governance.