Sustainable Water Futures: Infrastructure Investment for Freshwater Production and Conservation in Developing Nations

Abstract

ABSTRACT Freshwater scarcity is a growing global challenge, particularly in developing economies, undermining sustainable development and public health. This study explores the effects of infrastructure, financial market sophistication, and knowledge and technology output (KTO) on freshwater production in 91 developing countries from 2011 to 2022. Applying the STIRPAT model with Method of Moments Quantile Regression (MMQR) and Driscoll‐Kraay OLS, the analysis accounts for heterogeneity and cross‐sectional dependence. Results show that infrastructure development consistently enhances freshwater production through improved networks, irrigation systems, and smart water management. Financial market sophistication has a nonlinear effect—negative at lower quantiles but positive at higher ones—implying that mature markets facilitate large‐scale water investments. KTO becomes increasingly significant at higher quantiles, underscoring the role of R&D and innovation in water efficiency. These findings highlight the importance of integrated policies linking infrastructure, finance, and technology to achieve SDG 6 (Clean Water and Sanitation) and SDG 9 (Industry, Innovation, and Infrastructure). [Correction added on 04 May 2026, after first online publication: ‘30 developing countries’ has been corrected to ‘91 developing countries’.]