Decomposing Water Demand Dynamics: A Structural Decomposition Analysis of the Polish Economy (2010-2020)



Abstract Book of the 16th International Conference on New Ideas in Management, Economics and Accounting

Year: 2026

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Decomposing Water Demand Dynamics: A Structural Decomposition Analysis of the Polish Economy (2010-2020)

Kamil Gacek

ABSTRACT:

While static Input-Output models provide a critical snapshot of resource dependencies, understanding the evolutionary trajectory of water demand requires dissecting the underlying economic drivers over time. This study investigates the shifting dynamics of water consumption across economic sectors by applying a Structural Decomposition Analysis (SDA) within an Environmentally Extended Input-Output (EEIO) framework for the periods 2010, 2015, and 2020. By decomposing the temporal shifts in sectoral water use, the analysis isolates the distinct contributions of technological change – encompassing variations in direct water intensity and intersectoral Leontief linkages – from the systemic effects of shifting final demand. The results pinpoint the sectors undergoing the most profound structural transformations and reveal the specific mechanisms driving these shifts. Systemically, distinguishing between efficiency- and demand-driven changes enables a nuanced classification of sectors based on their impact over time. By tracing these shifts, the analysis provides a practical roadmap that equips policymakers with actionable evidence to design targeted interventions for sustainable development.

Keywords: Input Output Models, Water Footprint, Technology Change, Final Demand Change