Relationship between the Added Value of Water Sector and the Value of Agriculture, Industry and Electricity Sectors in Mazandaran Province

Water is a vital source for both human and biological living. Today, water management and conservation, not only both in developing countries but also in and the developed countries ones, has is of great importance. In the traditional economy, water is not considered as a productive factor in the national accounts; however, but in reality, water is the primary factor in many direct and indirect goods and services. To evaluate the effect of growth in the added value of agriculture, industry and electricity sectors on the added value of water sector in the Mazandaran province, coefficients of ARDL model were estimated using the Micro fit software. The extended Dickey-Fuller unit root test was used for the statistical test of variables. The static test of variables showed that all variables were significant at the 95% confidence level and were also consistent with the theory. A 1% increase (decrease) in the added value of industry and electricity resulted in the increase of 0.54 % and 0.39 %, respectively, increase (decrease) in the added value of the water sector, respectively. Also, 1% increase (decrease) in the added value of the agricultural sector caused in a 0.54% increase (decrease) in the added value of the water sector. Industry and electricity sectors affected the added value of water sector more than agriculture. In the long-term, the growth of the added value of the industry sector had the greatest impact on the growth of the added value of water sector. Based on the results, controlling water use in agriculture, industry and electricity sectors increases increased the effects of the added value of these sectors on the added value of the water sector.