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Is there an environmental Kuznets curve for water use? A panel smooth transition regression approach

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  • Duarte, Rosa
  • Pinilla, Vicente
  • Serrano, Ana

Abstract

This paper presents an analysis of the relationship between per capita water use and per capita income for 65 countries, over the period 1962–2008, within the framework of the so-called environmental Kuznets curve (EKC). Consistent with the existing literature, a polynomial fixed effects model is first presented. Then, a logistic Panel Smooth Transition Regression (PSTR) is estimated, obtaining income elasticities. This empirical study yields several important findings. The nexus between water withdrawal per person and per capita GDP is non-linear, showing a peculiar inverted-U with a marked downward limb that dominates the nexus, regardless of the estimation method chosen. On the whole, water use income elasticity clearly decreases throughout the period; nevertheless it exhibits a great variability over the sample, reflecting the divergent patterns of water use depending on the level of income of each country and the time period.

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  • 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.
  • Handle: RePEc:eee:ecmode:v:31:y:2013:i:c:p:518-527
    DOI: 10.1016/j.econmod.2012.12.010
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    Cited by:

    1. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2014. "The water footprint of the Spanish agricultural sector: 1860–2010," Ecological Economics, Elsevier, vol. 108(C), pages 200-207.
    2. Raúl Serrano & Marta Fernández-Olmos & Vicente Pinilla, 2015. "International diversification and performance in agri-food firms," Documentos de Trabajo dt2015-01, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    3. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2014. "The effect of globalisation on water consumption: A case study of the Spanish virtual water trade, 1849–1935," Ecological Economics, Elsevier, vol. 100(C), pages 96-105.
    4. Ben Nasr, Adnen & Gupta, Rangan & Sato, João Ricardo, 2015. "Is there an Environmental Kuznets Curve for South Africa? A co-summability approach using a century of data," Energy Economics, Elsevier, vol. 52(PA), pages 136-141.
    5. Gopalan, Sasidaran & Rajan, Ramkishen S., 2016. "Has Foreign Aid Been Effective in the Water Supply and Sanitation Sector? Evidence from Panel Data," World Development, Elsevier, vol. 85(C), pages 84-104.
    6. repec:gam:jsusta:v:9:y:2017:i:5:p:746-:d:97515 is not listed on IDEAS
    7. Jian Chai & Ting Liang & Xiaoyang Zhou & Yunxiao Ye & Limin Xing & Kin Keung Lai, 2016. "Natural Gas Consumption of Emerging Economies in the Industrialization Process," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-16, October.
    8. Ignacio Cazcarro & Rosa Duarte & Miguel Martín-Retortillo & Vicente Pinilla & Ana Serrano, 2014. "Water scarcity and agricultural growth in Spain: from curse to blessing?," Documentos de Trabajo (DT-AEHE) 1419, Asociacion Espa–ola de Historia Economica.
    9. Hao, Yu & Wei, Yi-Ming, 2015. "When does the turning point in China's CO2 emissions occur? Results based on the Green Solow model," Environment and Development Economics, Cambridge University Press, vol. 20(06), pages 723-745, December.
    10. Menegaki, Angeliki N. & Tsagarakis, Konstantinos P., 2015. "Rich enough to go renewable, but too early to leave fossil energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1465-1477.
    11. repec:eee:apmaco:v:273:y:2016:i:c:p:290-307 is not listed on IDEAS

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