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On the Water-Energy-Food Nexus: Is there Multivariate Convergence?

Author

Listed:
  • Carlo Andrea Bollino

    (University of Perugia, King Abdullah Petroleum Studies and Research (KAPSARC))

  • Marzio Galeotti

    (University of Milan, King Abdullah Petroleum Studies and Research (KAPSARC))

Abstract
This paper provides new evidence on the convergence process of energy, water and food per capita consumption levels for 108 countries from 1971 to 2018, using a common data set, with VAR and panel data approach. We establish a new notion of multivariate sigma and beta-convergence. The results reveal that there is evidence of sigma- absolute beta- and conditional beta-convergence process for the countries. Moreover, the multivariate approach reveals that there are spillover effects with complex positive impact of each variable on the others in the analyzed countries. The speed of convergence is simulated to assess when the desired levels according to the prescription of the SDG of per water, energy and food capita consumption is reached by each country. Results have important policy implications for interventions on macro variables. Investment has a positive accelerating effect on water convergence. In addition, investment, openness to foreign trade and inflow of foreign direct investment have a positive accelerating effect on food convergence as well as on energy convergence.

Suggested Citation

  • Carlo Andrea Bollino & Marzio Galeotti, 2021. "On the Water-Energy-Food Nexus: Is there Multivariate Convergence?," Working Papers 2021.06, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2021.06
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    References listed on IDEAS

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    Cited by:

    1. Bigerna, Simona & Bollino, Carlo Andrea & Polinori, Paolo, 2022. "Convergence of ecological footprint and sustainable policy options," Journal of Policy Modeling, Elsevier, vol. 44(3), pages 564-577.

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    More about this item

    Keywords

    Water; Energy; Food Nexus; Multivariate Convergence; Sustainable Development Goals; Worldwide Countries Data Set;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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