Water Scarcity: Fact or Fiction?

In this paper, first we set up a Water Supply and Demand Indicator system (WSDI), which contains 6 first-level indicators and 16 second- level indicators. Then we adopt the entropy method to establish concepts of Supply Index (SI) and Demand Index (DI). Next, we transform the traditional GE-Matrix by generalizing the axes as SI vs. DI and dividing it into five diagonal-parallel areas. Then, we choose Qingdao in our following analysis. Based on the WSDI model, we construct the Autoregressive Integrated Moving Average (ARIMA) model to forecast water situation in Qingdao.