Policy Uncertainties, Water Technology and Economic Growth

Fan Yang (), Jingyi Ge () and Xiaomin Wang ()
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Fan Yang: School of Economics and Management, Southeast University, Nanjing 211189, P. R. China
Jingyi Ge: ��School of Arts, Humanities and Social Science, University of Melbourne, Melbourne 3000, Australia
Xiaomin Wang: ��School of Business and Economics, The University of Hong Kong, Pokfulan Road, Hong Kong, Hong Kong S.A.R.

Water Economics and Policy (WEP), 2023, vol. 09, issue 04, 1-25

Abstract: Environmental economists have long been interested in the relationship between policy enforcement, technological progress, and economic growth. A multidirectional process exists where factors such as the economy, policy, technology, and environment interactively work. Based on the balanced panel data of 261 prefecture-level cities in China from 2000 to 2020, this study innovatively examines the diversified channels in the policy–technology system within the structural equation modeling framework. Conclusions can be drawn as follows. First, the policy uncertainties curb the technological improvement in the water sector, particularly in southern Chinese cities. Second, the incubation and adoption of water technology are closely intertwined, significantly affecting water quality. By clarifying the interaction of the factors in water technology diffusion, this study provides a comprehensive framework to investigate China’s water economics and policy uncertainties.

Keywords: Policy uncertainties; water technology; water quality; economic growth; structural equation modeling (search for similar items in EconPapers)
JEL-codes: C30 Q53 Q58 R11 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1142/S2382624X23400076

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