The Relationship between Economic Added Value and Water Consumption in Agriculture and Industry Sectors

This Paper has studied the relationship between water consumption and value-added in the agriculture and industry sectors based on the Kuznets curve hypothesis, considering the low water demand and the need for water consumption management in different economic sectors of Iran. For this purpose, data of water consumption and value-added related to Iran's agriculture and industry sectors from 1991-2016 have been used. To analyze the relationship between variables, the method of Bootstrap Quintile Regression has been used. Results indicated that during the studied period there was a significant relationship between water consumption and agriculture value added, which is consistent with the Kuznets curve hypothesis. As production and value-added increased, water consumption has increased up to its maximum point and then with continued growth in production; water consumption has decreased. Also, there was a positive and significant linear relationship between value-added and water consumption in the industry sector. So, the Kuznets curve hypothesis was not confirm in the industry sector.