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Estimating the Structure of Industrial Water Demands: The Case of Canadian Manufacturing

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  • Steven Renzetti

Abstract

This study considers water use by Canadian manufacturing firms. The estimation of water demands is based on a detailed cross-sectional survey of establishment-level observations on water prices, quantities, and expenditures. Industrial water use is modeled as having four components: intake, treatment prior to use, recirculation, and discharge. Average values for the estimated own-price elasticity for water intake range from -0.1534 to -0.5885. Water recirculation is found to be a substitute for both water intake and water discharge. This confirms that expanding the use of economic incentives (e.g., effluent fees) may be effective in encouraging firms to reduce their water use while increasing in-plant recirculation.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 68 (1992)
Issue (Month): 4 ()
Pages: 396-404

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Handle: RePEc:uwp:landec:v:68:y:1992:i:4:p:396-404

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Web page: http://le.uwpress.org/

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Cited by:
  1. Tsegai, Daniel W. & Linz, Teresa & Kloos, Julia, 2009. "Economic analysis of water supply cost structure in the Middle Olifants sub-basin of South Africa," Discussion Papers 49926, University of Bonn, Center for Development Research (ZEF).
  2. Surender Kumar, 2009. "Analyzing Industrial Water Demand in India: An Input Distance Function Approach," Working Papers id:2178, eSocialSciences.
  3. Linz, Teresa & Tsegai, Daniel W., 2009. "Industrial Water Demand analysis in the Middle Olifants sub-basin of South Africa: The case of Mining," Discussion Papers 49927, University of Bonn, Center for Development Research (ZEF).
  4. Diane Dupont & Steven Renzetti, 2001. "The Role of Water in Manufacturing," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(4), pages 411-432, April.
  5. Dachraoui, Kais Harchaoui, Tarek, 2004. "Water Use, Shadow Prices and the Canadian Business Sector Productivity Performance," Economic Analysis (EA) Research Paper Series 2004026e, Statistics Canada, Analytical Studies Branch.
  6. Worthington, Andrew C., 2010. "Commercial and Industrial Water Demand Estimation: Theoretical and Methodological Guidelines for Applied Economics Research/Estimación de la demanda de agua comercial e industrial: pautas teóricas y," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 28, pages 237-258, Agosto.
  7. Sheila M. Olmstead, 2010. "The Economics of Managing Scarce Water Resources," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 179-198, Summer.
  8. Ali, Md Kamar & Klein, K.K., 2014. "Implications of current and alternative water allocation policies in the Bow River Sub Basin of Southern Alberta," Agricultural Water Management, Elsevier, vol. 133(C), pages 1-11.
  9. Steven Renzetti & Joel Brueau & Michel Villeneuve, 2009. "Self-selection bias and manufacturing firms' demand for water recirculation," Working Papers 0902, Brock University, Department of Economics, revised Feb 2009.
  10. Garcia, Serge & Reynaud, Arnaud, 2004. "Estimating the benefits of efficient water pricing in France," Resource and Energy Economics, Elsevier, vol. 26(1), pages 1-25, March.
  11. Wang, Hua & Xie, Jian & Li, Honglin, 2010. "Water pricing with household surveys: A study of acceptability and willingness to pay in Chongqing, China," China Economic Review, Elsevier, vol. 21(1), pages 136-149, March.
  12. Wang, Hua & Xie, Jian & Li, Honglin, 2008. "Domestic water pricing with household surveys : a study of acceptability and willingness to pay in Chongqing, China," Policy Research Working Paper Series 4690, The World Bank.
  13. Strzepek, Kenneth M. & Juana, James S. & Kirsten, Johann F., 2006. "Marginal Productivity Analysis of Global Inter-sectoral Water Demand," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25748, International Association of Agricultural Economists.
  14. José Féres & Arnaud Reynaud & Alban Thomas, 2007. "Water Reuse in Brazilian Manufacturing Firms," Discussion Papers 1257, Instituto de Pesquisa Econômica Aplicada - IPEA.
  15. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
  16. Dachraoui, Kais Harchaoui, Tarek, 2004. "Utilisation de l'eau, prix fictifs et productivite du secteur canadien des entreprises," Serie de documents de recherche sur l'analyse economique (AE) 2004026f, Statistics Canada, Direction des etudes analytiques.
  17. Serge Garcia & Alban Thomas, 2003. "Regulation of Public Utilities under Asymmetric Information," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(1), pages 145-162, September.
  18. Arnaud Reynaud, 2003. "An Econometric Estimation of Industrial Water Demand in France," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(2), pages 213-232, June.
  19. van Heerden, Jan H. & Blignaut, James & Horridge, Mark, 2008. "Integrated water and economic modelling of the impacts of water market instruments on the South African economy," Ecological Economics, Elsevier, vol. 66(1), pages 105-116, May.
  20. Ali, Md Kamar & Klein, Kurt K., 2013. "Implications of Current and Alternative Water Allocation Policies in the Bow River Sub Basin of Southern Alberta," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149734, Agricultural and Applied Economics Association.

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