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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 plantslocated in São Paulo and at assessing the potential impacts of environmental policieson 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 forreducing water consumption. Results also provide some evidence of a tradeoffbetween water quality improvement and water conservation policies, since morestringent environmental standards may lead to a higher water demand. A joint use ofenvironmental norms and water charges may reconcile both policy goals.

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Bibliographic Info

Paper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1079.

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Length: 28 pages
Date of creation: Mar 2005
Date of revision:
Handle: RePEc:ipe:ipetds:1079

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  1. Diane Dupont & Steven Renzetti, 2001. "The Role of Water in Manufacturing," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 18(4), pages 411-432, April.
  2. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
  3. Kumar, Surender, 2004. "Analysing industrial water demand in India: An input distance function approach," Working Papers, National Institute of Public Finance and Policy 04/12, National Institute of Public Finance and Policy.
  4. Arnaud Reynaud, 2003. "An Econometric Estimation of Industrial Water Demand in France," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 25(2), pages 213-232, June.
  5. Li, Baibing & Martin, Elaine B. & Morris, A. Julian, 2002. "On principal component analysis in L1," Computational Statistics & Data Analysis, Elsevier, Elsevier, vol. 40(3), pages 471-474, September.
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Cited by:
  1. 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], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of G 181, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. 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, University of Bonn, Center for Development Research (ZEF) 49927, University of Bonn, Center for Development Research (ZEF).
  3. Vallés-Giménez, Jaime & Zárate-Marco , Anabel, 2013. "Environmental taxation and industrial water use in Spain," Investigaciones Regionales, Asociación Española de Ciencia Regional, Asociación Española de Ciencia Regional, issue 25, pages 133-162.
  4. 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, LERNA, University of Toulouse 06.16.209, LERNA, University of Toulouse.

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