Study on the Unconventional Water Subsidy Policy in the Arid Area of Northwest China

The arid regions of Northwest China are facing water shortages and ecological fragility. Making full use unconventional is one the effective ways solving issues achieving high-quality regional development. high cost utilization main obstacle to its technological development, subsidy policy may become a breaking point. Taking Ningdong Energy Chemical Industry Base (NECI Base) as case study, article proposes raising Yellow River price subsidize mine water. development can be effectively improved. Considering optimal allocation multiple sources substitution relationship between river water, this paper extends resources module (WRM) Computable General Equilibrium (CGE) model. model reflect linkage prices economy. Ten different scenarios simulated through extended CGE model, laws mechanisms on economy usage summarized. results show that increasing by 8% will achieve socio-economic output. Under scenario, industrial value added (IVA) basically unaffected, water-use efficiency (WUE) significantly improved, affordability enterprise satisfied. decreased from 319.03 million (M)m³ 283.58 Mm³ (11.1% saving), increased 27.88 47.15 (69.1% increase).