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Research article - Peer-reviewed, 2021

Spatial analysis of water quality and income in Europe

Brockwell, Erik; Elofsson, Katarina; Marbuah, George; Nordmark, Sandra

Abstract

The purpose of this study is to empirically investigate the environmental Kuznets curve (EKC) relationship between water quality and income within the European Union, considering spatial interdependences across countries. To this end, we apply a spatial econometrics framework using panel data, at the national level, for twenty EU countries across seventeen years, 1998 to 2014. Furthermore, we account for the role of human and livestock population size, institutional quality and economic openness for water quality. Results show that a significant EKC relationship is seen with an inverted N-shaped relationship between income and water quality. Water quality is decreasing in income for low income levels, increasing in income when GDP per capita for medium income levels, and deteriorating for high income levels. Eight out of twenty countries have income levels associated with a declining water quality. Spatial spillovers between countries are significant. Higher livestock density levels are associated with lower levels of water quality, while institutional quality and openness to trade are positively associated with water quality

Keywords

Environmental kuznets curve; Institutional quality; Spatial error model; Spatial spillovers; Water framework directive

Published in

Water Resources and Economics
2021, volume: 35, article number: 100182

Authors' information

Brockwell, Erik
Södertörn University
Aarhus University
Swedish University of Agricultural Sciences, Department of Economics
Stockholm Environment Institute (SEI)
Nordmark, Sandra
Swedish University of Agricultural Sciences, Department of Economics

Sustainable Development Goals

SDG6 Clean water
SDG10 Reduce inequality within and among countries

UKÄ Subject classification

Economic Geography
Oceanography, Hydrology, Water Resources

Publication Identifiers

DOI: https://doi.org/10.1016/j.wre.2021.100182

URI (permanent link to this page)

https://res.slu.se/id/publ/112957