Within the short term and 0.6601 in the long term, which indicated the larger rebound effect for agriculture inside the long-term [28]. Comparably, in our study, the economy-wide rebound effect from the production side was GYY4137 Purity & Documentation estimated to become 0.4310 inside the short run and 0.1226 in the long run for any water efficiency improvement by 1 . Although the previous research didn’t estimate the total economy-wide rebound effect of water efficiency improvement in China, Freire-Gonz ez [6] demonstrated that the total economy-wide rebound impact in Spain could be 100.74 if the water efficiency improves annually by 50 . Our study also discovered that the total rebound effect is much more significant in each the short- and long-run closures. The circular economy is usually a sustainable development method that concentrates around the high-efficiency utilization and recycling of all-natural sources, transforming the conventional development model to the 1 characterized with the low consumption, low emission, and high efficiency [428]. In 2021, China’s National Improvement and Reform Commission (NDRC) issued the Circular Economy Development Plan through the 14th 20(S)-Hydroxycholesterol Technical Information five-years (NDRC, 2021) and announced that the water consumption per unit GDP will decline by 16 towardWater 2021, 13,12 of2025, compared with 2020, via recycling and sustainably using water sources. The improvement of water efficiency would lessen the water consumption of making sectors and successfully save water resources. Even so, the rebound impact would weaken the watersaving impact of water efficiency improvement. Consequently, the policymakers should really market the building in the circular economy and lessen the rebound impact [493]. For example, the water recycling facilities need to be invested largely, as well as the utilizes of reclaimed water needs to be encouraged to minimize the consumption of fresh water. Water-intensive firms, including car washers, golf courses, and artificial skiing resorts, should equip advanced water recycling appliances and use reclaimed water and rainwater in priority. six. Conclusions and Policy Implications Water efficiency improvement is essential for ameliorating the severe water shortages in China. Nevertheless, its effectiveness is restricted by the water rebound effect, which refers towards the effect that the anticipated water resource savings from enhanced water efficiency might be partly or wholly offset or surpassed (named “backfire”) by the enhance in water demand. Even so, the economy-wide rebound effect of water efficiency improvement in China is poorly understood. This study explored the economy-wide rebound impact of water efficiency improvement in China depending on a multi-sectoral computable general equilibrium model. This study contributes towards the literature in two approaches: Very first, towards the very best of our know-how, this really is the initial study to specifically measure the economy-wide rebound effect of water efficiency for China in a complete CGE model. Second, we can measure and decompose the economy-wide rebound effect and discover the mechanisms of this rebound effect at a sizable scale. Our outcomes showed that (1) the water efficiency improvement has vastly diverse impacts around the macro-economy. The positive impacts on the macro-economy inside the short term are bigger than those in the long-term. Water efficiency improvement would expand employment inside the quick term but increase the capital stock within the long term. (two) Water efficiency improvement would effectively minimize the consumption of water sources.