Factors affecting water demand: macro evidence in Malaysia
Water becomes a crucial issue in the 21st century because of rising population and increasing development. Water is needed for agriculture, energy production, recreation, and manufacturing. This study investigates the impact of economic indicators and climate change on water demand for 13 states i...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2019
|
| Online Access: | http://journalarticle.ukm.my/14064/ http://journalarticle.ukm.my/14064/ http://journalarticle.ukm.my/14064/1/jeko_53%281%29-2.pdf |
| Summary: | Water becomes a crucial issue in the 21st century because of rising population and increasing development. Water is
needed for agriculture, energy production, recreation, and manufacturing. This study investigates the impact of economic
indicators and climate change on water demand for 13 states in Malaysia. Using annual data from 2007 to 2015, the
panel data approach is used to assess the impact of these determinants on water demand. The dependent variable is
water resources, and independent variables comprise real income, total consumption per capita, agriculture sector,
population density and climate change. The real income is a nonlinear equation and indicates a threshold in economic
development because the welfare of residents and industry will decline after the optimum point due to the shortage
of water resources. The results indicate that total consumption per capita, agriculture, and population density have a
positive impact on water demand. The agriculture sector exerts high demand on water resources. The climate change
is a correct sign that represents an increase in demand for water resources during dry periods and leading to water
stress. This finding is useful for improving the prediction of climate change to managing the water resources sustainably,
particularly in the agriculture sector. |
|---|