Publication:
The Impact of Water Quality on GDP Growth: Evidence from Around the World

Loading...
Thumbnail Image
Files in English
English PDF (1.11 MB)
1,871 downloads
English Text (53.14 KB)
91 downloads
Date
2019-12-10
ISSN
Published
2019-12-10
Abstract
Declining water quality can impact the economy in various ways. Impacts can be found in the health sector, where labor productivity can be affected, in agriculture, where the quality and quantity of food produced can be reduced, and in tourism, real estate, aquaculture/fisheries and other sectors which rely on environmental quality and ecosystem services. Despite these well-known impacts, finding economy-wide affects of water quality on economic activity can be elusive. In this paper we attempt to fill this gap by using a conventional empirical approach in contemporary environmental economics and new data on economic activity and water quality for nineteen countries from 1990-2014. The authors find that when rivers become very heavily polluted, regions downstream see reductions in economic growth, losing between 0.8 and 2.0 percent of economic growth. These losses imply that in many places, the costs of environmental degradation are severely under-estimated and well above efficient levels.
Link to Data Set
Citation
Desbureaux, Sebastien; Damania, Richard; Rodella, Aude-Sophie; Russ, Jason; Zaveri, Esha. 2019. The Impact of Water Quality on GDP Growth: Evidence from Around the World. © World Bank, Washington, DC. http://hdl.handle.net/10986/33071 License: CC BY 3.0 IGO.
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Associated URLs
Associated content
Citations