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Economic growth and water use

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  • Matthew Cole

Abstract

In recent years the issue of global water scarcity has attracted increasing attention within academia, non-governmental organizations and the media. The aim of this short note is to ascertain whether there is a systematic relationship between water use and income, and particularly whether an inverted U-shaped relationship exists, as has been found for other resources and pollutants. Using a new data set of water use, evidence of such a relationship is provided, suggesting that water use may benefit from composition and technique effects. While this finding appears optimistic, regional forecasts are made that suggest that levels of water use in developing regions will continue to increase for many years to come. The implications of these findings are discussed.

Suggested Citation

  • Matthew Cole, 2004. "Economic growth and water use," Applied Economics Letters, Taylor & Francis Journals, vol. 11(1), pages 1-4.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:1:p:1-4
    DOI: 10.1080/1350485042000187435
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    References listed on IDEAS

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    1. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    2. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 401-416, November.
    3. Stern , David I., 1998. "Progress on the environmental Kuznets curve?," Environment and Development Economics, Cambridge University Press, vol. 3(2), pages 173-196, May.
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    Cited by:

    1. Xiaoxia Lin & Jinghua Sha & Jingjing Yan, 2015. "Exploring the impacts of water resources on economic development in Beijing-Tianjin-Hebei Region," ERSA conference papers ersa15p723, European Regional Science Association.
    2. Falchetta, Giacomo & Gernaat, David E.H.J. & Hunt, Julian & Sterl, Sebastian, 2019. "Hydropower dependency and climate change in sub-Saharan Africa: A nexus framework and evidence-based review," Earth Arxiv w7rj3, Center for Open Science.
    3. Kazuki Kagohashi & Tetsuya Tsurumi & Shunsuke Managi, 2015. "The Effects of International Trade on Water Use," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-16, July.
    4. Bagstad, Kenneth J. & Ancona, Zachary H. & Hass, Julie & Glynn, Pierre D. & Wentland, Scott & Vardon, Michael & Fay, John, 2020. "Integrating physical and economic data into experimental water accounts for the United States: Lessons and opportunities," Ecosystem Services, Elsevier, vol. 45(C).
    5. Taner Akan & Halil İbrahim Gündüz & Tara Vanlı & Ahmet Baran Zeren & Ali Haydar Işık & Tamerlan Mashadihasanli, 2023. "Why are some countries cleaner than others? New evidence from macroeconomic governance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6167-6223, July.
    6. Seung-Hoon Yoo, 2007. "Urban Water Consumption and Regional Economic Growth: The Case of Taejeon, Korea," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(8), pages 1353-1361, August.
    7. Hai He & Lu Zhang & Shenbei Zhou & Jiaping Hou & Shengcai Ji, 2022. "Relationship between Water Use and per Capita Income with Environmental Kuznets Curve of Developing Countries: A Case Study in Jiangsu Province, China," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    8. Ashagre, Biniam B. & Platts, Philip J. & Njana, Marco & Burgess, Neil D. & Balmford, Andrew & Turner, R. Kerry & Schaafsma, Marije, 2018. "Integrated modelling for economic valuation of the role of forests and woodlands in drinking water provision to two African cities," Ecosystem Services, Elsevier, vol. 32(PA), pages 50-61.
    9. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2013. "Is there an environmental Kuznets curve for water use? A panel smooth transition regression approach," Economic Modelling, Elsevier, vol. 31(C), pages 518-527.
    10. Yoo, Seung-Hoon & Lee, Joo-Suk, 2010. "Electricity consumption and economic growth: A cross-country analysis," Energy Policy, Elsevier, vol. 38(1), pages 622-625, January.
    11. 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.
    12. Jinping Zhang & Hongbin Li & Xixi Shi & Yang Hong, 2019. "Wavelet-Nonlinear Cointegration Prediction of Irrigation Water in the Irrigation District," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(8), pages 2941-2954, June.
    13. Zongyong Zhang & Junguo Liu & Bofeng Cai & Yuli Shan & Heran Zheng & Xian Li & Xukun Li & Dabo Guan, 2020. "City‐level water withdrawal in China: Accounting methodology and applications," Journal of Industrial Ecology, Yale University, vol. 24(5), pages 951-964, October.
    14. John Hoehn & Kwami Adanu, 2008. "Do growth, investment, and trade encourage water use or water conservation?," Letters in Spatial and Resource Sciences, Springer, vol. 1(2), pages 127-146, December.
    15. Mengjiao Wang & Xiaofang Xu & Liyuan Zheng & Xiaolu Xu & Yukuo Zhang, 2023. "Analysis of the Relationship between Economic Development and Water Resources–Ecological Management Capacity in China Based on Nighttime Lighting Data," IJERPH, MDPI, vol. 20(3), pages 1-19, January.

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