Ciency improvement by 1 , 5 , and 10 , respectively. A set of equations determined by Equations (9)16) have been constructed within the CGE model to measure the rebound impact at the macroeconomic level. 4. Simulation Final results 4.1. Macroeconomic Influence The simulation results showed that enhancing water efficiency inside the producing sector would positively effect China’s financial development. In the short-run closure, the gross domestic product (GDP) would grow by 0.0052 , 0.0258 , and 0.0293 if the water efficiency increases by 1 , 5 , and 10 , respectively (Row 1, Table 1). Within the long-run closure, the GDP would develop by 0.0022 , 0.0108 , and 0.215 in the event the water efficiency increases by 1 , five , and 10 , respectively. The water efficiency improvement would efficiently lessen the water utilization of sectors and lower their production fees, stimulating sectoral production and growing investment. Therefore, improving water efficiency could improve China’s GDP. On the other hand, we are able to also uncover that the GDP increases in the short-run closures are much larger than those in long-run closures. In the short-run closure, holding the capital stock unchanged, GDP development is derived from a rise in employment. Inside the long-run closure, employment is fixed, and GDP development is derived from an increase inWater 2021, 13,7 GYY4137 manufacturer ofcapital stock. Also, employment in the short-run Nitrocefin Anti-infection closure has a larger percentage increase than the adjustments in capital stock in the long-run closure. Because of this, the GDP increases within the short-run closure are larger than those within the long-run closure.Table 1. Macro-economic impact of water efficiency improvement . Short-Run Closure 1 GDP CPI Investment Household consumption Exports Imports Employment Labor price Capital stock Capital cost 0.0030 -0.0007 0.0052 0.0035 -0.0009 0.0025 0.0023 -0.0007 0.0000 0.0048 five 0.0149 -0.0033 0.0258 0.0173 -0.0044 0.0120 0.0114 -0.0033 0.0000 0.0240 10 0.0293 -0.0066 0.0505 0.0341 -0.0084 0.0233 0.0223 -0.0066 0.0000 0.0473 1 0.0022 -0.0002 0.0023 0.0020 0.0012 0.0006 0.0000 0.0030 0.0013 -0.0006 Long-Run Closure 5 0.0108 -0.0010 0.0113 0.0101 0.0058 0.0028 0.0000 0.0149 0.0064 -0.0031 ten 0.0215 -0.0020 0.0226 0.0202 0.0116 0.0055 0.0000 0.0298 0.0128 -0.Supply: ORANIG model simulation.Water efficiency improvement would also have a optimistic effect on household consumption and investment. Improving water efficiency could lower the production cost of sectors; in addition, it lowers the customer cost index (CPI), which stimulates households to improve their consumption. GDP growth would also increase households’ disposable earnings, therefore advertising household consumption. In the short-run closure, household consumption would enhance by 0.0035 , 0.0173 , and 0.0341 in the event the water efficiency increases by 1 , five , and ten , respectively (Row 4, Table 1). In the long-run closure, household consumption would develop by 0.0020 , 0.0101 , and 0.202 in the event the water efficiency increases by 1 , five , and 10 , respectively. We found that the influence of water efficiency improvement on household consumption is a great deal larger within the short-term as the GDP development inside the short-run closure is also greater. Furthermore, the reduce in sectors’ production fees would expand their output and raise their demand for capital, which leads to an increase in investment. Moreover, the increases in investment inside the short-run closure are also more significant than those within the long-run closure. As an example, if water efficiency increases by 10 , the investment wou.