New vision on the Relationship between Income and Water Withdrawal in Industry Sector

Abdolnaser Hemati, Mohsen Mehrara, Ali Sayehmiri

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DOI: 10.4236/nr.2011.23025                

Abstract

This paper investigates the relationship between industrial water withdrawal (IWW) and income in selected world countries. The issue is addressed by means of a smooth transition regression (STR) model on cross section data of 132 countries in 2006. The results confirm the nonlinearity of the link between IWW and income. According to the results, the income elasticity of IWW is a bell-shaped curve. Therefore, the policies and management processes in water sector including water allocation between activities and reigns should take into account the development degree and also focus on income level, water scarcity and the economic, social and ecological structure in each country.

Keywords

Water-Income, STR, NRBEKC, Elasticity, Socio-Economic Structure

Conflicts of Interest

The authors declare no conflicts of interest.

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