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

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.