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The Effect of Urbanization and Economic Performance on Metropolitan Water Consumption: Theoretic Model and Evidence from Guangzhou of China

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  • Shaohui Gao
  • Yiming He

Abstract

This paper examines the effect of urbanization and economic performance on metropolitan water consumption in Guangzhou of China. We develop social and individual optimal models to reveal the impact of urbanization and economic performance on metropolitan water consumption. Based on aggregated annual data from 1949 to 2014, the empirical results from OLS and ARDL suggest that previous water consumption per capita, urbanization and GDP per capita each play vital roles impacting metropolitan water consumption per capita in Guangzhou.

Suggested Citation

  • Shaohui Gao & Yiming He, 2017. "The Effect of Urbanization and Economic Performance on Metropolitan Water Consumption: Theoretic Model and Evidence from Guangzhou of China," Applied Economics and Finance, Redfame publishing, vol. 4(2), pages 163-171, March.
    • Handle: RePEc:rfa:aefjnl:v:4:y:2017:i:2:p:163-171
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    References listed on IDEAS

    as
    1. Yan, Tingting & Wang, Jinxia & Huang, Jikun, 2015. "Urbanization, agricultural water use, and regional and national crop production in China," Ecological Modelling, Elsevier, vol. 318(C), pages 226-235.
    2. Edward B. Barbier, 2004. "Water and Economic Growth," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 1-16, March.
    3. Cazcarro, Ignacio & Duarte, Rosa & Sánchez-Chóliz, Julio, 2013. "Economic growth and the evolution of water consumption in Spain: A structural decomposition analysis," Ecological Economics, Elsevier, vol. 96(C), pages 51-61.
    4. Mohamed Samer (ed.), 2016. "Urban Agriculture," Books, IntechOpen, number 3983.
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    Cited by:

    1. Yiming He & Thomas M. Fullerton, 2020. "The economic analysis of instrument variables estimation in dynamic optimal models with an application to the water consumption," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(9), pages 413-423.

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    More about this item

    Keywords

    water consumption; urbanization; metropolitan performance; ARDL; Guangzhou;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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