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

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, rea...

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Main Authors: Desbureaux, Sebastien, Damania, Richard, Rodella, Aude-Sophie, Russ, Jason, Zaveri, Esha
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/656191576065317601/The-Impact-of-Water-Quality-on-GDP-Growth-Evidence-from-Around-the-World
http://hdl.handle.net/10986/33071
id okr-10986-33071
recordtype oai_dc
spelling okr-10986-330712021-05-25T09:31:13Z The Impact of Water Quality on GDP Growth : Evidence from Around the World Desbureaux, Sebastien Damania, Richard Rodella, Aude-Sophie Russ, Jason Zaveri, Esha WATER QUALITY ECONOMIC GROWTH WATER POLLUTION WATER RESOURCE MANAGEMENT AGRICULTURAL PRODUCTIVITY BIOLOGICAL OXYGEN DEMAND AQUACULTURE TOURISM 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. 2019-12-23T18:00:13Z 2019-12-23T18:00:13Z 2019-12-10 Working Paper http://documents.worldbank.org/curated/en/656191576065317601/The-Impact-of-Water-Quality-on-GDP-Growth-Evidence-from-Around-the-World http://hdl.handle.net/10986/33071 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic WATER QUALITY
ECONOMIC GROWTH
WATER POLLUTION
WATER RESOURCE MANAGEMENT
AGRICULTURAL PRODUCTIVITY
BIOLOGICAL OXYGEN DEMAND
AQUACULTURE
TOURISM
spellingShingle WATER QUALITY
ECONOMIC GROWTH
WATER POLLUTION
WATER RESOURCE MANAGEMENT
AGRICULTURAL PRODUCTIVITY
BIOLOGICAL OXYGEN DEMAND
AQUACULTURE
TOURISM
Desbureaux, Sebastien
Damania, Richard
Rodella, Aude-Sophie
Russ, Jason
Zaveri, Esha
The Impact of Water Quality on GDP Growth : Evidence from Around the World
description 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.
format Working Paper
author Desbureaux, Sebastien
Damania, Richard
Rodella, Aude-Sophie
Russ, Jason
Zaveri, Esha
author_facet Desbureaux, Sebastien
Damania, Richard
Rodella, Aude-Sophie
Russ, Jason
Zaveri, Esha
author_sort Desbureaux, Sebastien
title The Impact of Water Quality on GDP Growth : Evidence from Around the World
title_short The Impact of Water Quality on GDP Growth : Evidence from Around the World
title_full The Impact of Water Quality on GDP Growth : Evidence from Around the World
title_fullStr The Impact of Water Quality on GDP Growth : Evidence from Around the World
title_full_unstemmed The Impact of Water Quality on GDP Growth : Evidence from Around the World
title_sort impact of water quality on gdp growth : evidence from around the world
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/656191576065317601/The-Impact-of-Water-Quality-on-GDP-Growth-Evidence-from-Around-the-World
http://hdl.handle.net/10986/33071
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