IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v85y2023ics0957178723001893.html
   My bibliography  Save this article

Estimating production functions to determine the marginal economic value and price elasticity of water in the Chilean industrial sector

Author

Listed:
  • Mardones, Cristian
  • Orellana, Antonia

Abstract

This study determines the marginal economic value of water and the price elasticity of demand for this resource using data from the 2018 Annual National Industrial Survey. Specifically, a translog production function is estimated with the ordinary least squares (OLS), constrained least squares (CLS), and instrumental variables (IV) methods, CLS being the method with the best results. Based on the estimates of the production function at the national level, it is determined that, on average, the marginal value of water is 14.6 USD/m3. Finally, the price elasticity of water demand varies between −0.8 and −1.2 depending on the industrial subsector.

Suggested Citation

  • Mardones, Cristian & Orellana, Antonia, 2023. "Estimating production functions to determine the marginal economic value and price elasticity of water in the Chilean industrial sector," Utilities Policy, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:juipol:v:85:y:2023:i:c:s0957178723001893
    DOI: 10.1016/j.jup.2023.101677
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178723001893
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2023.101677?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:85:y:2023:i:c:s0957178723001893. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.