The Environmental Kuznets Curve at the thermoelectricity-water nexus: Empirical evidence from Spain

Abstract

Energy and water are essential resources for ensuring economic growth. Both sectors are closely interrelated. Electricity generation is one of the most water-intensive activities worldwide and the cooling of thermoelectric power stations represents one of the largest uses of water within the energy sector. This study provides evidence on the existence of an Environmental Kuznets Curve (EKC) for water withdrawal at the thermoelectricity sector in Spain, one of the most arid countries in Europe, for the period 1970–2019, using the ARDL model. Our results show a direct relationship between per capita income and water withdrawal until an estimated turning point is reached. In the Spanish case, further development has led to a reduction in water needs for the following reasons: 1) the use of less water-intensive cooling systems, 2) changes in generation technology.