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PRWP

Reproducibility package for The Economics Of Water Scarcity

2025
Get Reproducibility Package
Reference ID
RR_WLD_2025_440
DOI
https://doi.org/10.60572/bzth-df67
Author(s)
Serafin Martinez Jaramillo, Jon Frost, Carlos Madeira
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Nov 06, 2025
Last modified
Nov 06, 2025
  • Project Description
  • Downloads
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata
  • Citation
  • Overview

    Abstract

    In many countries in North and South America, water scarcity could become a macroeconomically relevant concern. While countries in the Americas have substantial surface water and groundwater resources, available indicators show that these are being depleted. As a key input into production processes (agriculture, power generation, industrial use) and a common good, water resources risk being overexploited. Regressions with panel data for 169 countries between 1990 and 2020 show that higher water scarcity is associated with lower GDP growth and investment, and higher inflation. Water use efficiency is associated with higher GDP growth and lower inflation. Climate scenarios show risks of much more severe water shortages in the future, threatening its sustainable use. This could impose higher costs on individual sectors and on the economy, reducing output and pushing up prices. Water availability and use could thus become an area for economists and central banks to monitor in the context of climate change, economic forecasting and monetary policy.

    Reproducibility Package

    Scripts
    Readme Get Reproducibility Package
    Link: https://reproducibility.worldbank.org/index.php/catalog/393/download/1113/README.pdf
    Reproducibility package for The Economics Of Water Scarcity
    File name
    RR_WLD_2025_440
    Zip package
    RR_WLD_2025_440.zip
    Title
    Reproducibility package for The Economics Of Water Scarcity
    Date
    2025-11
    Dependencies
    Stata dependencies are listed in the ado folder.
    Instructions
    See README in reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DECDI) Analytics team, World Bank.
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Stata
    Name
    Stata
    Version
    18 MP

    Reproducibility

    Technology environment

    Paper exhibits were reproduced on a computer with the following specifications:
    • OS: Windows 11 Enterprise
    • Processor: INTEL(R) XEON(R) PLATINUM 8562Y+ 2.80 GHz (4 processors)
    • Memory available: 32.0 GB

    Technology requirements

    Run time: ~ 45 minutes

    Reproduction instructions

    Update the global in line 3 in the do-file "Main_WaterScarcity_FMM_2025" and run the do-file.

    Data

    Datasets
    Global Information System on Water and Agriculture (AQUASTAT)
    Name
    Global Information System on Water and Agriculture (AQUASTAT)
    Note
    Data accessed in January 2024. The filters applied were all countries and all variables. Files: Data/CSV/AQUASTAT Statistics Bulk Download (English).csv
    Access policy
    Publicly Available and included in the package.
    License URL
    https://www.fao.org/contact-us/terms/db-terms-of-use/en/
    Data URL
    https://data.apps.fao.org/aquastat/?lang=en
    Citation
    FAO. (2024). Global Information System on Water and Agriculture (AQUASTAT). Accessed on January 2024. https://data.apps.fao.org/aquastat/?lang=en.Licence: CC-BY-4.0.
    Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
    Name
    Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
    Note
    Files: Data/Excel/FRED CPIAUCSL.xls
    Access policy
    Publicly Available and included in the package.
    License URL
    https://www.bls.gov/bls/linksite.htm
    Data URL
    https://fred.stlouisfed.org/series/CPIAUCSL
    Citation
    U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: All Items in U.S. City Average [CPIAUCSL], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CPIAUCSL, January 28, 2024
    Water-Use Efficiency and Water Stress
    Name
    Water-Use Efficiency and Water Stress
    Note
    Data has the variables of subsections 641 and 642 from Sustainable Development Goal 6 on water and sanitation (SDG 6) related water use efficiency, levels of water stress and freshwater withdrawal for each country. Files: Data/Excel/sdg6data_download10Mar2024_641_642.xlsx
    Access policy
    Publicly Available and included in the package.
    License URL
    https://www.sdg6data.org/en/about/terms-of-use
    Citation
    Based on data provided by Food and Agriculture Organisation of United Nations (FAO), downloaded from the UN-Water SDG 6 Data Portal (https://sdg6data.org/) on January 2024.
    Probabilistic Population Projections
    Name
    Probabilistic Population Projections
    Note
    Data contains based Probabilistic Population Projections on the World Population Prospects 2024. Data accessed September 2024. Filters were “Probabilistic Projections (PPP scenarios) – (Population – Both sexes XLSX)”. Files: Data/Excel/UN_PPP2024_Output_PopTot.xlsx
    Access policy
    Publicly Available and included in the package.
    License
    July 2024 by United Nations, made available under a Creative Commons license CC BY 3.0 IGO: http://creativecommons.org/licenses/by/3.0/igo/
    Data URL
    https://population.un.org/wpp/downloads?folder=Standard%20Projections&group=Most%20used
    Citation
    United Nations, Department of Economic and Social Affairs, Population Division (2024). World Population Prospects 2024, Online Edition.
    Penn World Table version 10.01
    Name
    Penn World Table version 10.01
    Note
    Data was accessed in January 2024. Files: Data/Stata/pwt1001.dta
    Access policy
    Publicly Available and included in the package.
    License
    Creative Commons Attribution 4.0 International License
    Data URL
    https://www.rug.nl/ggdc/productivity/pwt/pwt-releases/pwt1001
    Citation
    Feenstra, Robert C., Robert Inklaar and Marcel P. Timmer (2015), "The Next Generation of the Penn World Table" American Economic Review, 105(10), 3150-3182, available for download at www.ggdc.net/pwt
    Penn World Table version 9.1
    Name
    Penn World Table version 9.1
    Note
    NA data was accessed in June 2019. Files: Data/Stata/pwt91_na_data.dta
    Access policy
    Publicly Available and included in the package.
    License
    Creative Commons Attribution 4.0 International License
    Data URL
    https://www.rug.nl/ggdc/productivity/pwt/pwt-releases/pwt9.1
    Citation
    Feenstra, Robert C., Robert Inklaar and Marcel P. Timmer (2015), "The Next Generation of the Penn World Table" American Economic Review, 105(10), 3150-3182, available for download at www.ggdc.net/pwt
    UNIDO Industrial Statistics (INDSTAT) Revision 2 Database
    Name
    UNIDO Industrial Statistics (INDSTAT) Revision 2 Database
    Note
    Data was accessed in January 2024. The dataset has since been discontinued; newer versions are available at https://stat.unido.org/. Files: Data/Excel/INDSTAT2 national_currency.xlsx: INDSTAT Revision 2 (23 manufacturing industries); real index and value added, all countries/years, no metadata, national currency. Data/Excel/INDSTAT2_national_currency_metadata.xlsx: Same dataset with full metadata; all countries/years, national currency.
    Access policy
    Publicly Available and included in the package.
    License URL
    https://stat.unido.org/terms-and-conditions
    Citation
    UNIDO, ‘UNIDO Statistics Portal’, https://stat.unido.org/
    World Development Indicators
    Name
    World Development Indicators
    Note
    The datasets were downloaded between January 2024 and October 2024. The following indicators are included in the files “WB [Indicator name].xls” and “API_[Indicator].xls” in the Data/Excel folder: Control of Corruption: Estimate (CC.EST); Government Effectiveness: Estimate (GE.EST); Political Stability and Absence of Violence/Terrorism: Estimate (PV.EST); Rule of Law: Estimate (RL.EST); Regulatory Quality: Estimate (RQ.EST); Voice and Accountability: Estimate (VA.EST); Access to electricity (% of population) (EG.ELC.ACCS.ZS); Agriculture, forestry, and fishing, value added (% of GDP) (NV.AGR.TOTL.ZS); Agriculture, forestry, and fishing, value added (annual % growth) (NV.AGR.TOTL.KD.ZG); Level of water stress: freshwater withdrawal as a proportion of available freshwater resources (ER.H2O.FWST.ZS); Inflation, consumer prices (annual %) (FP.CPI.TOTL.ZG); Electric power transmission and distribution losses (% of output) (EG.ELC.LOSS.ZS); Electricity production from oil, gas, and coal sources (% of total) (EG.ELC.FOSL.ZS); Electricity production from coal sources (% of total) (EG.ELC.COAL.ZS); Electricity production from hydroelectric sources (% of total) (EG.ELC.HYRO.ZS); Electricity production from nuclear sources (% of total) (EG.ELC.NUCL.ZS); Electricity production from oil sources (% of total) (EG.ELC.PETR.ZS); Electricity production from renewable sources, excluding hydroelectric (% of total) (EG.ELC.RNWX.ZS); Electricity production from renewable sources, excluding hydroelectric (kWh) (EG.ELC.RNWX.KH); Food production index (2014–2016 = 100) (AG.PRD.FOOD.XD); Annual freshwater withdrawals, agriculture (% of total freshwater withdrawal) (ER.H2O.FWAG.ZS); Annual freshwater withdrawals, domestic (% of total freshwater withdrawal) (ER.H2O.FWDM.ZS); Annual freshwater withdrawals, industry (% of total freshwater withdrawal) (ER.H2O.FWIN.ZS); Annual freshwater withdrawals, total (% of internal resources) (ER.H2O.FWTL.ZS); GDP growth (annual %) (NY.GDP.MKTP.KD.ZG); GDP per capita, PPP (constant 2017 international $) (NY.GDP.PCAP.PP.KD); Gross capital formation (% of GDP) (NE.GDI.TOTL.ZS); Gross capital formation (annual % growth) (NE.GDI.TOTL.KD.ZG); Gross fixed capital formation (% of GDP) (NE.GDI.FTOT.ZS); Gross fixed capital formation, private sector (% of GDP) (NE.GDI.FPRV.ZS); Gross fixed capital formation (annual % growth) (NE.GDI.FTOT.KD.ZG); Industry (including construction), value added (% of GDP) (NV.IND.TOTL.ZS); Industry (including construction), value added (annual % growth) (NV.IND.TOTL.KD.ZG); Manufacturing, value added (% of GDP) (NV.IND.MANF.ZS); Manufacturing, value added (annual % growth) (NV.IND.MANF.KD.ZG); Population, total (SP.POP.TOTL); Services, value added (% of GDP) (NV.SRV.TOTL.ZS); Services, value added (annual % growth) (NV.SRV.TOTL.KD.ZG); Total natural resources rents (% of GDP) (NY.GDP.TOTL.RT.ZS); Official exchange rate (LCU per US$, period average) (PA.NUS.FCRF); Water productivity, total (constant 2015 US$ GDP per cubic meter of total freshwater withdrawal) (ER.GDP.FWTL.M3.KD).
    Access policy
    Publicly Available and included in the package.
    License
    CC BY 4.0
    License URL
    https://data.worldbank.org/summary-terms-of-use
    Citation
    The World Bank. World Development Indicators. https://databank.worldbank.org/source/world-development-indicators (accessed 2024).
    Country and ISO code classification
    Name
    Country and ISO code classification
    Note
    Compiled by the authors. Data contains ISO codes, continents, and regions for each country. Files: Data/Stata/CountryDataMatching_vs0.dta; Data/Excel/ISO 3166 Codes.xlsx.
    Access policy
    Complied by the authors and included in the package.
    Citation
    Jon Frost, Carlos Madeira and Serafin Martinez. 2024. "ISO codes and regions [dataset]"
    Data statement

    All data sources are publicly available and included in the reproducibility package.

    Description

    Output
    The Economics Of Water Scarcity
    Type
    Working Paper
    Title
    The Economics Of Water Scarcity
    Description
    Policy Research Working Papers (PRWP)
    Authors
    Author Affiliation Email
    Serafin Martinez Jaramillo World Bank smartinezjaramil@worldbank.org
    Jon Frost BIS jon.frost@bis.org
    Carlos Madeira Banco Central de Chile carlosmadeira2009@u.northwestern.edu
    Date of production

    2025-11-03

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Keywords
    Water Scarcity Tragedy Of The Commons Climate Change Natural Resources
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    Q25 Water Q2 Journal of Economic Literature (JEL)
    Q50 General Q5 Journal of Economic Literature (JEL)
    L95 Gas Utilities; Pipelines; Water Utilities L5 Journal of Economic Literature (JEL)

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    Serafin Martinez Jaramillo World Bank smartinezjaramil@worldbank.org
    Reproducibility WBG World Bank reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reproducibility WBG DECDI World Bank - Development Impact Department Verification and preparation of metadata
    Date of Production

    2025-11-03

    Document version

    1

    Citation

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