Virtual Water and an EKC for Water Pollution

摘要

This paper includes country level virtual water data in an Environmental Kuznets Curve (EKC) for water pollution. Virtual water accounts for the total amount of water required to produce a good in all stages of production. This paper constructs a water independence index, defined as the water required in domestic production divided by the amount of water required for all imported goods. Results suggest an increase in trade openness and importing water intensive goods may lower water pollution levels.