Examining the Differences in Self- and Publicly Supplied Firms' Water Demands
This research examines the factors influencing the decision made by manufacturing firms regarding their source of water supply and tests whether self-supplied firms exhibit demands for intake water different from firms supplied by a public utility. The first stage of the estimation model involves a Probit analysis of the supply-source choice and the second stage employs a regression model with endogenous switching to estimate the demand equations for the two types of firms. Results indicate that economic factors such as annual connection fees influence the supply-source decision.
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