Abstract
Introduction: The European Union (EU) adopted the so-called Water Framework Directive (WFD) in the year 2000 to
ensure that the Member States achieve good ecological status in all surface water bodies. Despite progress, only 40%
of surface water bodies currently meet this requirement. This raises a concern regarding the potential of policy
changes to counteract the increasing scale of production and consumption, with respect to the impact on water
quality. The purpose of this study is to empirically investigate the relationship between water quality and income
within the European Union, considering spatial interdependences across countries.
Methods and data: 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: Results show that a significant EKC relationship is seen with an inverted N-shaped relationship between
income and water quality degradation. Water quality is decreasing in income for low income levels, increasing in
income when GDP per capita is between 13,323 and 37,507 USD, 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 and positive. 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.
Discussion and take-home message: A possible interpretation of the results is that moderate increases in income lead
to increased pollution abatement efforts, benefitting water quality. For further increases in income, available
technologies might not be sufficient to sustain low pollution levels. Positive spillovers between countries indicate the
existence of institutional spillovers and learning. Technological innovations and institutional cooperation and learning
may help to counteract decreasing water quality for higher income levels.
ensure that the Member States achieve good ecological status in all surface water bodies. Despite progress, only 40%
of surface water bodies currently meet this requirement. This raises a concern regarding the potential of policy
changes to counteract the increasing scale of production and consumption, with respect to the impact on water
quality. The purpose of this study is to empirically investigate the relationship between water quality and income
within the European Union, considering spatial interdependences across countries.
Methods and data: 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: Results show that a significant EKC relationship is seen with an inverted N-shaped relationship between
income and water quality degradation. Water quality is decreasing in income for low income levels, increasing in
income when GDP per capita is between 13,323 and 37,507 USD, 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 and positive. 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.
Discussion and take-home message: A possible interpretation of the results is that moderate increases in income lead
to increased pollution abatement efforts, benefitting water quality. For further increases in income, available
technologies might not be sufficient to sustain low pollution levels. Positive spillovers between countries indicate the
existence of institutional spillovers and learning. Technological innovations and institutional cooperation and learning
may help to counteract decreasing water quality for higher income levels.
| Originalsprog | Engelsk |
|---|---|
| Titel | 15 th DWF WATER RESEARCH CONFERENCE 2nd February to 18th March 2021 : Technical Abstracts |
| Antal sider | 1 |
| Publikationsdato | 2021 |
| Sider | 6-6 |
| Status | Udgivet - 2021 |
| Begivenhed | 15th Annual Water Research Conference: Danish Water Forum - København, Danmark Varighed: 2 feb. 2021 → 3 feb. 2021 Konferencens nummer: 15 |
Konference
| Konference | 15th Annual Water Research Conference: Danish Water Forum |
|---|---|
| Nummer | 15 |
| Land/Område | Danmark |
| By | København |
| Periode | 02/02/2021 → 03/02/2021 |