This article aims at presenting the results of the ?Survey of Industrial Water Use atthe Paraíba do Sul River Basin?. This survey collected data about 488 industrialfacilities located in the river basin area. The survey had the following goals: a)providing a general characterization of the role of water in industrial plants; and b)assessing the financial and environmental impacts of the implementation of watercharges in the basin, through the analysis of firms? water demand behaviour andeffluent treatment costs. Results suggest that water charges may attain satisfactoryresults in terms of water resources conservation while not implying in significant costincreases to the firms. On the other hand, marginal treatment cost estimations are farabove the proposed charge levels for effluent discharge. This indicates that, at leastduring the initial implementation period, water charges will not be an effectivemechanism to induce firms to undertake pollution control measures.
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Paper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number
1084.