Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence From Brazil
AbstractThis 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 InfoPaper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1079.
Length: 28 pages
Date of creation: Mar 2005
Date of revision:
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Other versions of this item:
- JosÃ© FÃ©res & Arnaud Reynaud, 2005. "Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil," Land Economics, University of Wisconsin Press, vol. 81(3).
- 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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