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

40 Pages Posted: 18 Mar 2021 Last revised: 25 Mar 2021

See all articles by Carlo Andrea Bollino

Carlo Andrea Bollino

University of Perugia

Marzio Galeotti

University of Milan - Department of Environmental Science and Policy (ESP); Fondazione Eni Enrico Mattei (FEEM); GREEN - Centre for Research on Geography, Resources, Environment, Energy & Networks

Date Written: March 17, 2021

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.

Keywords: Water, Energy, Food Nexus, Multivariate Convergence, Sustainable Development Goals, Worldwide Countries Data Set

JEL Classification: C33, Q43, O11, O13, R11

Suggested Citation

Bollino, Carlo Andrea and Galeotti, Marzio, On the Water-Energy-Food Nexus: Is there Multivariate Convergence? (March 17, 2021). FEEM Working Paper No. 6.2021, Available at SSRN: https://ssrn.com/abstract=3806353 or http://dx.doi.org/10.2139/ssrn.3806353

Carlo Andrea Bollino (Contact Author)

University of Perugia

Via Pascoli 22
Perigoa, 06121
Italy

Marzio Galeotti

University of Milan - Department of Environmental Science and Policy (ESP) ( email )

2 via Celoria
Milano, 20133
Italy
+39-2-50316470 (Phone)
+39-2-50316486 (Fax)

HOME PAGE: http://www.unimi.it/chiedove/cv/ENG/marzio_galeotti.pdf?1531977155891

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
Milan, 20123
Italy

HOME PAGE: http://www.feem.it

GREEN - Centre for Research on Geography, Resources, Environment, Energy & Networks ( email )

via Rontgen
Milan, 20123
Italy

HOME PAGE: http://https://www.green.unibocconi.eu

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