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Municipal Water Consumption and Urban Economic Growth in El Paso

Department of Economics and Finance, University of Texas at El Paso, 500 W. University Ave., El Paso, TX 79968, USA
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Water 2020, 12(10), 2656; https://doi.org/10.3390/w12102656
Received: 11 August 2020 / Revised: 1 September 2020 / Accepted: 20 September 2020 / Published: 23 September 2020
(This article belongs to the Section Water Resources Management, Policy and Governance)
This study investigates the nexus between municipal water consumption and economic growth for El Paso, TX, USA. Located in the semi-arid southwestern United States, El Paso water consumption has been the subject of prior economic studies. However, the relationship between water consumption and economic growth has not been previously analyzed for El Paso or any other metropolitan economies in the region. Empirical results indicate that municipal water usage and real personal income are integrated of order one, but are not co-integrated. Given that, a vector autoregression model is estimated and a Granger causality test is performed. Estimation results show unidirectional causation from real income growth to water consumption, indicating that water conservation policies will not inhibit economic growth in this urban economy. View Full-Text
Keywords: empirical growth studies; water economics; regional econometrics empirical growth studies; water economics; regional econometrics
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Pastor, D.J.; Fullerton, T.M., Jr. Municipal Water Consumption and Urban Economic Growth in El Paso. Water 2020, 12, 2656.

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