(International Water Association, 2022) Sesma Martín, Diego; Puente Ajovín, Miguel; Institute for Advanced Research in Business and Economics - INARBE; Universidad Pública de Navarra / Nafarroako Unibertsitate Publikoa
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 rela-
tionship 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.
