The key drivers for the water stress: an empirical analysis from Balkan countries

Abstract

Background: Water stress is a phenomenon that describes when water demand is greater than the amount of water available at a particular period and also when water is poor quality and restricts its usage. Nowadays, droughts and water scarcity are no longer rare or extreme events in Europe, and about 20% of the European territory and 30% of Europeans are affected by water stress during an average year. The growth in industrialization and economic development, which increases water usage, water ecosystem transformation, and a massive loss of biodiversity, etc., are causing water scarcity. Purpose: This study analyses the main factors for water stress and lack of water in Balkan countries. Design/Methodology: Data proceedings are time series indicators for Balkan countries, with an annual frequency of 2002 – 2021. The statistical approach in panel data model is used to find statistical significance, direct on-driven fixed factors, etc. Findings: Fixed effects panel regressions demonstrate that water stress in this region is statistically significantly affected by climate change indicators (temperature and precipitation), economic indicators (water productivity, agricultural land, and growth of the gross domestic product), population growth, political stability, etc. Practical Implications: The government's role in supplying water and lowering water stress must build an efficient management mechanism and policies for water reserves such as groundwater, surface water, or rainwater. Dictated by the global and regional circumstances of climate change, governments should initiate strategic efficient plans for the good-using and sustainability of water.