IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v25y2003i2p213-232.html
   My bibliography  Save this article

An Econometric Estimation of Industrial Water Demand in France

Author

Listed:
  • Arnaud Reynaud

Abstract

This study investigates the structure of industrial water demand byestimating the derived demand for water on a sample of industrialestablishments located in the south-west of France. Productiontechnologies are represented by short-term variable cost functions andapproximated by a translog form. Industrial water use is modeled ashaving three components: the quantity of water bought to a waterutility, the quantity of autonomous water and the quantity of watertreated prior to use. We include in this framework water effluents,which are considered as a by-product of the production process, emittedby firms. Each of the three water components is treated as a separateinput and all are estimated as a system of simultaneous equations. Themodel is estimated on a sample of 51 industrial plants in the Girondedistrict observed from 1994 to 1996 using Seemingly Unrelated Regression(SUR) and Feasible Generalized Least Squares (FGLS). Results ofestimations show that industrial firms are sensitive to water priceinputs. Network water elasticity is estimated at −0.29. It variesfrom −0.10 to −0.79 according to the type of industryconsidered. Autonomous water price elasticity is not significant.Elasticity for treated water is evaluated at −1.42 at themean-sample and varies from −0.90 to −2.21 according to theindustry considered. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Arnaud Reynaud, 2003. "An Econometric Estimation of Industrial Water Demand in France," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(2), pages 213-232, June.
    • Handle: RePEc:kap:enreec:v:25:y:2003:i:2:p:213-232
    DOI: 10.1023/A:1023992322236
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1023992322236
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1023992322236?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.

    References listed on IDEAS

    as
    1. 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.
    2. Lars Gårn Hansen, 1996. "Water and Energy Price Impacts on Residential Water Demand in Copenhagen," Land Economics, University of Wisconsin Press, vol. 72(1), pages 66-79.
    3. Mary E. Renwick & Sandra O. Archibald, 1998. "Demand Side Management Policies for Residential Water Use: Who Bears the Conservation Burden?," Land Economics, University of Wisconsin Press, vol. 74(3), pages 343-359.
    4. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    5. Consuelo Varela‐Ortega & José M. Sumpsi & Alberto Garrido & María Blanco & Eva Iglesias, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 193-202, September.
    6. Moore, Michael R. & Negri, Donald H., 1992. "A Multicrop Production Model Of Irrigated Agriculture, Applied To Water Allocation Policy Of The Bureau Of Reclamation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-15, July.
    7. Julie A. Hewitt & W. Michael Hanemann, 1995. "A Discrete/Continuous Choice Approach to Residential Water Demand under Block Rate Pricing," Land Economics, University of Wisconsin Press, vol. 71(2), pages 173-192.
    8. Richard E. Just & David Zilberman & Eithan Hochman & Ziv Bar-Shira, 1990. "Input Allocation in Multicrop Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 200-209.
    9. Renzetti, Steven, 1992. "Evaluating the welfare effects of reforming municipal water prices," Journal of Environmental Economics and Management, Elsevier, vol. 22(2), pages 147-163, March.
    10. Céline Nauges & Arnaud Reynaud, 2001. "Estimation de la demande domestique d'eau potable en France," Revue économique, Presses de Sciences-Po, vol. 52(1), pages 167-185.
    11. Diane Dupont & Steven Renzetti, 2001. "The Role of Water in Manufacturing," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(4), pages 411-432, April.
    12. Robert G. Chambers & Richard E. Just, 1989. "Estimating Multioutput Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 980-995.
    13. Frederick G. Babin & Cleve E. Willis & P. Geoffrey Allen, 1982. "Estimation of Substitution Possibilities between Water and Other Production Inputs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 148-151.
    14. Varela-Ortega, Consuelo & M. Sumpsi, Jose & Garrido, Alberto & Blanco, Maria & Iglesias, Eva, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics, Blackwell, vol. 19(1-2), pages 193-202, September.
    15. Patrick Point, 1993. "Partage de la ressource en eau et demande d'alimentation en eau potable," Revue Économique, Programme National Persée, vol. 44(4), pages 849-862.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arbues, Fernando & Garcia-Valinas, Maria Angeles & Martinez-Espineira, Roberto, 2003. "Estimation of residential water demand: a state-of-the-art review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 81-102, March.
    2. Henrique Monteiro, 2010. "Residential Water Demand in Portugal: checking for efficiency-based justifications for increasing block tariffs," Working Papers Series 1 ercwp0110, ISCTE-IUL, Business Research Unit (BRU-IUL).
    3. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-17, July.
    4. Bouchrika Ali & Terzi Chokri & Mhadhbi Khalil & El Ammari Anis, 2017. "The Qualitative Model Provides to the Creation of a Hypothetical Water Market in Tunisia," International Journal of Environmental Sciences & Natural Resources, Juniper Publishers Inc., vol. 1(4), pages 96-105, February.
    5. Kumar, Surender, 2004. "Analysing industrial water demand in India: An input distance function approach," Working Papers 04/12, National Institute of Public Finance and Policy.
    6. Diakité, Daouda & Thomas, Alban, 2011. "La demande domestique d’eau potable : une étude sur un panel de communes ivoiriennes," L'Actualité Economique, Société Canadienne de Science Economique, vol. 87(3), pages 269-299, septembre.
    7. Fernando Arbues & Inmaculada Villanua, 2006. "Potential for Pricing Policies in Water Resource Management: Estimation of Urban Residential Water Demand in Zaragoza, Spain," Urban Studies, Urban Studies Journal Limited, vol. 43(13), pages 2421-2442, December.
    8. repec:npf:wpaper:12 is not listed on IDEAS
    9. repec:ind:nipfwp:12 is not listed on IDEAS
    10. Vallés-Giménez, Jaime & Zárate-Marco , Anabel, 2013. "Environmental taxation and industrial water use in Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 25, pages 133-162.
    11. Worthington, Andrew C., 2010. "Commercial and Industrial Water Demand Estimation: Theoretical and Methodological Guidelines for Applied Economics Research/Estimación de la demanda de agua comercial e industrial: pautas teóricas y m," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 237-258, Agosto.
    12. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    13. Rita Martins & Adelino Fortunato, 2005. "Residential water demand under block rates: a Portuguese case study," GEMF Working Papers 2005-09, GEMF, Faculty of Economics, University of Coimbra.
    14. Mónica Maldonado-Devis & Vicent Almenar-Llongo, 2021. "A Panel Data Estimation of Domestic Water Demand with IRT Tariff Structure: The Case of the City of Valencia (Spain)," Sustainability, MDPI, vol. 13(3), pages 1-26, January.
    15. Obafèmi P. Koutchadé & Alain Carpentier & Fabienne Femenia, 2021. "Modeling Corners, Kinks, and Jumps in Crop Acreage Choices: Impacts of the EU Support to Protein Crops," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1502-1524, August.
    16. Lars Gårn Hansen & Carsten Lynge Jensen, 2014. "Jointness through vessel capacity input in a multispecies fishery," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 745-756, November.
    17. Tamkinat Rauf & M. Wasif Siddiqi, 2008. "Price-setting for Residential Water: Estimation of Water Demand in Lahore," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 893-906.
    18. Yang, Hong & Zhang, Xiaohe & Zehnder, Alexander J. B., 2003. "Water scarcity, pricing mechanism and institutional reform in northern China irrigated agriculture," Agricultural Water Management, Elsevier, vol. 61(2), pages 143-161, June.
    19. Jasper M. Dalhuisen & Raymond J.G.M. Florax & Henri L.F.M. de Groot & Peter Nijkamp, 2001. "Price and Income Elasticities of Residential Water Demand: Why Empirical Estimates differ," Tinbergen Institute Discussion Papers 01-057/3, Tinbergen Institute.
    20. Bazzani, Guido Maria & di Pasquale, S. & Gallerani, Vittorio & Viaggi, Davide, 2002. "Water Policy And The Sustainability Of Irrigated Systems In Italy," Working Papers 14401, University of Minnesota, Center for International Food and Agricultural Policy.
    21. Céline Nauges & Alban Thomas, 2003. "Long-run Study of Residential Water Consumption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 25-43, September.
    22. Bazzani, Guido Maria & di Pasquale, S. & Gallerani, Vittorio & Viaggi, Davide, 2002. "Water Regulation and Irrigated Agriculture Under the EU Water Framework Directive," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24898, European Association of Agricultural Economists.

    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:kap:enreec:v:25:y:2003:i:2:p:213-232. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.