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The rapid development of the textile industry (TI) has led to serious water resource consumption. Driven by the demands of the green economy, improving the comprehensive management level of water scientifically and measuring the relationships among environmental regulations, technological progress and water resource consumption rationally in the TI are necessary in order to solve the water resource consumption problem and promote the transformation and upgrading the TI. We used decoupling theory to quantitatively analyze the decoupling relationship among environmental regulation, technological progress and water resource consumption from 2002 to 2015 in China’s TI. We also constructed the dynamic response vector autoregressive model of China’s industrial water source consumption to study the internal dynamic correlation from the perspective of time series. Analysis showed that the decoupling between water resource consumption and environmental regulation in the TI was strong in 6 years (2003, 2006, 2009, 2011, 2013 and 2015) and weak in 3 years (2002, 2004 and 2010). The decoupling between water resource consumption and technological progress is also strong in 6 years (2003, 2006, 2008, 2009, 2011 and 2015) and weak in 3 years (2007, 2010 and 2012). Overall, a longterm cointegration relationship is found among environmental regulation, technological progress and water resource consumption. The intensity of environmental regulation and the degree of technological progress positively affects the improvement in water resource consumption. Moderate enhancement in environmental regulation and improvement in technological progress can alleviate the issues of water resource consumption.

Dynamic Response Analysis Among Environmental Regulation, Technological Progress and Water Resource Consumption in China’s Textile Industry