This study investigates the nexus between municipal water consumption and economic growth for El Paso, TX, USA. Located in the semi-arid southwestern United States, El Paso water consumption has been the subject of prior economic studies. However, the relationship between water consumption and economic growth has not been previously analyzed for El Paso or any other metropolitan economies in the region. Empirical results indicate that municipal water usage and real personal income are integrated of order one, but are not co-integrated. Given that, a vector autoregression model is estimated and a Granger causality test is performed. Estimation results show unidirectional causation from real income growth to water consumption, indicating that water conservation policies will not inhibit economic growth in this urban economy.

中文翻译：

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埃尔帕索的市政用水量和城市经济增长

本研究调查了美国德克萨斯州埃尔帕索市市政用水量与经济增长之间的关系。埃尔帕索位于美国西南部半干旱地区，水资源消耗一直是先前经济研究的主题。然而，此前并未针对埃尔帕索或该地区的任何其他大都市经济体分析用水量与经济增长之间的关系。实证结果表明，市政用水和实际个人收入是一阶积分，但不是协整。鉴于此，估计向量自回归模型并执行格兰杰因果检验。估算结果表明，实际收入增长与用水量之间存在单向因果关系，表明节水政策不会抑制该城市经济的经济增长。