Irrigation Kuznets Curve, Governance and Dynamics of Irrigation Development: A Global Cross-Country Panel Analysis from 1972 to 1991

Abstract

"This report verifies the Environmental Kuznets Curve (EKC) hypothesis for irrigation. The EKC hypothesis suggests for an inverse U-shaped (or concave) relationship between the level of environmental degradation and income in a given society. The EKC hypothesis also implies that some form of environmental deterioration appears inevitable during the initial stage of development, but subsequent increases in the societal income would generate enough incentives to improve the environmental quality. In line with this reasoning, the EKC relationship for irrigation (referred to here as Irrigation Kuznets Curve, or IKC) hypothesizes that the demand for irrigation is greater at the initial stage of development and that irrigation demand declines as societal income increases. This process subsequently gives rise to an inverted U-shaped relationship between the level of irrigation and the level of income. This information on EKC for irrigation has large implications for planning of irrigation and for analyzing demand for irrigation, and water uses and water reallocations across sectors."