Interactions of energy policies with water technology development in China are investigated using
a hybrid input-output model and scenario analysis. The implementation of energy policies and water
technology development can produce co-benefits for each other. Water saving potential of energy
technology development is much larger than that of new energy exploitation. From the viewpoint of
proportions of water saving co-benefits of energy policies, energy sectors benefit the most. From the
viewpoint of proportions of energy saving and CO2 mitigation co-benefits of water technology development,
water sector benefits the most. Moreover, economic sectors are classified into four categories
concerning co-benefits on water saving, energy saving and CO2 mitigation. Sectors in categories 1 and 2
have big direct co-benefits. Thus, they can take additional responsibility for water and energy saving and
CO2 mitigation. If China implements life cycle materials management, sectors in category 3 can also take
additional responsibility for water and energy saving and CO2 mitigation. Sectors in category 4 have few
co-benefits from both direct and accumulative perspectives. Thus, putting additional responsibility on
sectors in category 4 might produce pressure for their economic development.