Water scarcity and local economic activity: Spatial spillovers and the role of irrigation
利用全球网格数据，研究发现雨养农业区的水资源短缺对经济活动有负向空间溢出效应，影响范围可达300公里，而灌溉设施能有效缓解这种直接和间接的负面影响。
This paper explores the spatial spillover effects of water scarcity on local economic activity and examines the role of irrigation in modulating these effects. Utilizing a newly assembled global geospatial data set that combines information on seasonal water availability and economic activity measured by nighttime luminosity, I conduct a spatial econometric analysis at the granular level of 0.25° × 0.25° grid cells worldwide. My results reveal that agricultural water scarcity in rainfed grid cells has negative spatial spillover effects on economic activity, extending up to 300 kilometers away. However, the presence of irrigation infrastructure effectively mitigates both the direct negative impacts and the negative spatial spillover effects of agricultural water scarcity on economic activity. These results suggest that the benefits of certain climate adaptation measures may not be confined locally, but are observable at a larger scale. This paper emphasizes the importance of considering spatial dynamics and irrigation in understanding the effects of water scarcity on economic activity, providing valuable insights for water resource management policies targeted at promoting climate-resilient development.