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Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil

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  • José Féres
  • Arnaud Reynaud

Abstract

This paper aims at characterizing water demand by Brazilian manufacturing plants and at assessing the potential impacts of environmental policies on industrial water use. We first show that the price elasticity of the water demand, –1.0 on average, is high enough for a water charge to act as an effective policy tool for reducing water consumption. Results also provide some evidence of a tradeoff between water quality improvement and water conservation policies, since more stringent environmental standards may lead to a higher water demand. A joint use of environmental norms and water charges may reconcile both policy goals.

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File URL: http://le.uwpress.org/cgi/reprint/81/3/396
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Bibliographic Info

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

Volume (Year): 81 (2005)
Issue (Month): 3 ()
Pages:

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Handle: RePEc:uwp:landec:v:81:y:2005:i:3:p396-411

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

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  1. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
  2. Surender Kumar, 2009. "Analyzing Industrial Water Demand in India: An Input Distance Function Approach," Working Papers id:2178, eSocialSciences.
  3. Li, Baibing & Martin, Elaine B. & Morris, A. Julian, 2002. "On principal component analysis in L1," Computational Statistics & Data Analysis, Elsevier, vol. 40(3), pages 471-474, September.
  4. 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.
  5. 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.
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Cited by:
  1. 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).
  2. José Gustavo Féres & Alban Thomas & Arnaud Reynaud, 2006. "Water Reuse In Brazilian Manufacturing Firms," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 181, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  3. FERES José & REYNAUD Arnaud, 2006. "Does Formal or Informal Environmental Regulation have an Impact on Costs? An Empirical Analysis of the Brazilian," LERNA Working Papers 06.16.209, LERNA, University of Toulouse.
  4. Vallés-Giménez, Jaime & Zárate-Marco , Anabel, 2013. "Environmental taxation and industrial water use in Spain," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 25, pages 133-162.

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