Decomposing US Water Withdrawal since 1950

Peter Debaere and Amanda Kurzendoerfer

Journal of the Association of Environmental and Resource Economists, 2017, vol. 4, issue 1, 155 - 196

Abstract: US water withdrawal has been remarkable since 1950, not mimicking the uninterrupted US population increase, steady real GDP growth, and rising per capita GDP. After doubling between 1950 and 1980, water withdrawals have stabilized and even decreased. Our decomposition reveals that 35%-50% of the productivity gains that let the United States produce each dollar of its GDP with less water stem from long-term structural changes between sectors (growing service economy). The remaining 50%-65% come from productivity improvements within those sectors due to improved production techniques, productivity improvements in electricity generation, and shifts toward less water-intensive products. Importing more water-intensive goods is not the main reason why US water use plateaued.

Date: 2017
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