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The Role of Water in Manufacturing

  • Diane Dupont

    ()

  • Steven Renzetti

Water's role in manufacturing technologies has received limited attention. A KLEM model of the sector's technology is extended to include two facets of water use: intake and recirculation. Three annual cross-sectional surveys on plant-level water use are pooled and combined with census data to estimate this extended model for the Canadian manufacturing sector over the period 1981–1991. While Canada's water allocation regulations influence private water withdrawals, statistical tests support representing water intake as a variable input. Water intake is found to be a substitute for water recirculation, energy, labour and capital. The relationship between water intake and recirculation is stronger when water intake is process-related rather than related to cooling and steam production. Technological change has been biased in the direction of increased water intake and decreased water recirculation. Copyright Kluwer Academic Publishers 2001

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File URL: http://hdl.handle.net/10.1023/A:1011117319932
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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 18 (2001)
Issue (Month): 4 (April)
Pages: 411-432

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Handle: RePEc:kap:enreec:v:18:y:2001:i:4:p:411-432
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100263

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  1. Robidoux, B. & Lester, J., 1988. "Econometric Estimates Of Scale Economies In Canadian Manufacturing," Working Papers-Department of Finance Canada 1988-4, Department of Finance Canada.
  2. Michael R. Moore & Ariel Dinar, 1995. "Water and Land as Quantity-Rationed Inputs in California Agriculture: Empirical Tests and Water Policy Implications," Land Economics, University of Wisconsin Press, vol. 71(4), pages 445-461.
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  6. Steven Renzetti, 1992. "Estimating the Structure of Industrial Water Demands: The Case of Canadian Manufacturing," Land Economics, University of Wisconsin Press, vol. 68(4), pages 396-404.
  7. Michael Benarroch, 1997. "Returns to Scale in Canadian Manufacturing: An Interprovincial Comparison," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1083-1103, November.
  8. Gaudet, G O & May, J D & McFetridge, D G, 1976. "Optimal Capital Accumulation: The Neoclassical Framework in a Canadian Context," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 269-73, August.
  9. Glenn D. Schaible, 1997. "Water Conservation Policy Analysis: An Interregional, Multi-Output, Primal-Dual Optimization Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 163-177.
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  11. Steven Renzetti, 1999. "Municipal Water Supply and Sewage Treatment: Costs, Prices and Distortions," Canadian Journal of Economics, Canadian Economics Association, vol. 32(3), pages 688-704, May.
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