Study on the interactive relationship between water resources and industrial upgrading of the Yellow River Basin

The comprehensive evaluation index system of water resources and industrial upgrading of the Yellow River Basin was constructed. Based on the indices from index calculation, a spatio-temporal analysis was performed. Using PVAR model, with Granger causality test, impulse response and variance decomposition, the interaction between water resources and industrial upgrading of the eight provinces in the Yellow River Basin over the years 2010 to 2019 was empirically analyzed. According to the analysis results, the corresponding countermeasures and suggestions were proposed. The results indicated that: (1) It was difficult for the eight provinces in the Yellow River Basin to promote the industrial structure adjustment by optimizing the water resources utilization pattern. It was necessary to find new driving forces of development, enhance the added value of the industrial chain, and establish a modern industrial system; (2) The optimization of water resources utilization of the eight provinces in the Yellow River Basin had a promoting effect on enhancing the industrial environmental friendliness. Great efforts should be made to promote the sustainability of water resources utilization in the Yellow River Basin, and ecological compensation mechanism should be established; (3) The improvement of industrial environmental friendliness of the eight provinces in the Yellow River Basin played a positive role in improving the condition of water resources. Vigorous efforts should be made to develop renewable energy, promote the green level of industry, and restore the status of water resources.