Water-Related Technological Innovations and Water Use Efficiency: International Evidence

Juan Tan and Xing-Yun Zou

Emerging Markets Finance and Trade, 2023, vol. 59, issue 15, 4138-4157

Abstract: Water-related technological innovations have been increasingly recognized in recent years as promising techniques to solve the water crisis, raising attention in the academic communities of water research and sustainable development. This research thus investigates the relationship between water-related technological innovations and water use efficiency and makes the following contributions. First, this paper validates the significant improvement effects of water-related technological innovations on water use efficiency and notes that such influences will persist over the next 6 years. This finding comes from a panel fixed effects model on a sample of 75 countries from 1997 to 2019 and is verified by a series of robustness tests. In addition, this paper shows that the above improvement impacts are heterogeneous among different countries, and that the impacts are significantly positive in low-income, left-wing, and democratic countries. Lastly, our empirical findings offer an important reference for policymakers to improve water use efficiency and mitigate the water crisis.

Date: 2023
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DOI: 10.1080/1540496X.2023.2181663

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