Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil
AbstractThis 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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Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Land Economics.
Volume (Year): 81 (2005)
Issue (Month): 3 ()
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Web page: http://le.uwpress.org/
Other versions of this item:
- José Féres & Arnaud Reynaud, 2005. "Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence From Brazil," Discussion Papers 1079, Instituto de Pesquisa Econômica Aplicada - IPEA.
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- L5 - Industrial Organization - - Regulation and Industrial Policy
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- 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.
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- FERES JosÃ© & 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.
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