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Municipal Water Use Kuznets Curve

Author

Listed:
  • Zikun Song

    (Chinese Academy of Science
    University of Chinese Academy of Science)

  • Shaofeng Jia

    (Chinese Academy of Science)

Abstract

The relationship between per capita municipal water use (PCMWU) and per capita gross domestic product (PCGDP) (purchasing power parity, constant 2011 US$) is statistically analysed for each country in the world. The results indicate that PCMWU will increase with the rising PCGDP at the beginning, which will then decrease when PCGDP reaches a certain level. This trend follows the rules of the Water Use Kuznets Curve, an inverted U-shape curve that describes the relationship between water use and gross domestic product (GDP). The unbalanced panel data analysis of world 183 countries and 22 developed countries revealed that the PCGDP at the peak point of the Municipal Water Use Kuznets Curve (MWUKC) is approximately US$33,000. The specific reason for the MWUKC is the saturation of municipal water demand. At the same time, the driving forces include technological advancements, growth in water prices, effective environmental regulations and policies, and water-saving consciousness. Most of these mechanisms benefit from economic development. The experiences of developed countries provide guidance and positive indicators for developing countries or countries with increasing PCMWU. Due to the accelerated economic growth in developing countries, these countries could reach a turning point more rapidly.

Suggested Citation

  • Zikun Song & Shaofeng Jia, 2023. "Municipal Water Use Kuznets Curve," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(1), pages 235-249, January.
    • Handle: RePEc:spr:waterr:v:37:y:2023:i:1:d:10.1007_s11269-022-03366-z
    DOI: 10.1007/s11269-022-03366-z
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    References listed on IDEAS

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    1. Matthew Cole, 2004. "Economic growth and water use," Applied Economics Letters, Taylor & Francis Journals, vol. 11(1), pages 1-4.
    2. Inocencio, Arlene B. & Padilla, Jose E. & Javier, Esmyra P., 1999. "Determination of Basic Household Water Requirements (Revised)," Discussion Papers DP 1999-02, Philippine Institute for Development Studies.
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