Environmental Kuznets curve and the water footprint: an empirical analysis

Abstract

Water is an essential element for life, playing an important role in economic development, although it is threatened by negative externalities that do not make it available for everyone. The main purpose of this article is to offer insightful empirical evidence of the nexus between economic growth and water usage. In this article we investigate the Environmental Kuznets Curve (EKC) hypothesis using a country's water footprint as an indicator of water impact. Using linear and nonlinear models we estimate, through the ordinary least square, the relationship between water impact and gross national income (GNI) per capita for 94 Countries. Our study shows an N-shape curve, which does not confirm the EKC hypothesis, both for the relationship between Water Footprint per capita and GNI per capita and Grey Water Footprint per capita and GNI per capita. From this results, a number of recommendations can be provided to strengthen the water resources policies and management.