Factors Affecting Industrial Water Consumption in Iranian Provinces: ‎ Evidence from environmental Kuznets curve Hypothesis

Document Type : Scientific-research

Authors

1 Master of Economic Energy, Faculty of Literature and Human Science, Ilam University

2 Associate Professor, Department of Economics, Faculty of Literature and Human Science, Ilam University

3 Assistant Professor, Department of Economics, Faculty of Literature and Human Science, Ilam University

10.30465/ce.2022.41182.1781

Abstract

Developing national policies and monitoring water management regulations must be socially desirable, environmentally sustainable, and economically appropriate for both government and industry. In the present study, for the first time, using data from the period 2002 to 2015 and the Generalized Fluid (GMM) method, in addition to examining the Kuznets hypothesis by considering water consumption in the provinces of Iran, the effect of value-added variables of industry and trade (As economic factors), urbanization, government size (as social factors), annual rainfall and temperature (as ecological factors) on industrial water consumption are discussed. The results indicate that there is no significant relationship between the amount of trade, value added of the industrial sector and its square with the water consumption of the industrial sector and the Kuznets hypothesis in the industrial sector is not confirmed. The results also show a significant inverse effect of government size and temperature and a positive and significant effect of urbanization and rainfall on water consumption in industry. Therefore, it is necessary for the industries of each province to be equipped with water quota management technologies in accordance with their local natural, social and economic conditions and water conservation should be encouraged.

Keywords

References

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Journal of Iranian Economic Issues
Volume 9, Issue 2
October 2022
Pages 161-182

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History

  • Receive Date: 03 May 2022
  • Revise Date: 07 October 2022
  • Accept Date: 01 November 2022

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