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Analyzing Industrial Water Demand in India: An Input Distance Function Approach

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  • Surender Kumar

Abstract

This study investigates the water demand of Indian manufacturing plants. It adopts an input distance function approach and approximates it by a translog form. Duality between cost function and input distance function is exploited to retrieve information concerning substitutability and the shadow price of water. The model is estimated, using linear programming approach, on a sample of 92 firms over the three years.

Suggested Citation

  • Surender Kumar, 2009. "Analyzing Industrial Water Demand in India: An Input Distance Function Approach," Working Papers id:2178, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:2178
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    1. 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.
    2. 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.
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    4. 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.
    5. Grosskopf, S. & Hayes, K. & Hirschberg, J., 1995. "Fiscal stress and the production of public safety: A distance function approach," Journal of Public Economics, Elsevier, vol. 57(2), pages 277-296, June.
    6. Steven Renzetti, 1993. "Examining the Differences in Self- and Publicly Supplied Firms' Water Demands," Land Economics, University of Wisconsin Press, vol. 69(2), pages 181-188.
    7. 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.
    8. Bishwanath Goldar & Rita Pandey, 2001. "Water pricing and abatement of industrial water pollution: study of distilleries in India," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 4(2), pages 95-113, June.
    9. 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.
    10. Steven Renzetti (ed.), 2002. "The Economics of Industrial Water Use," Books, Edward Elgar Publishing, number 2196.
    11. 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.
    12. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
    13. Hua Wang & Somik Lall, 2002. "Valuing water for Chinese industries: a marginal productivity analysis," Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 759-765.
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    Cited by:

    1. George, Biju & Malano, Hector & Davidson, Brian & Hellegers, Petra & Bharati, Luna & Massuel, Sylvain, 2011. "An integrated hydro-economic modelling framework to evaluate water allocation strategies I: Model development," Agricultural Water Management, Elsevier, vol. 98(5), pages 733-746, March.
    2. Linz, Teresa & Tsegai, Daniel W., 2009. "Industrial Water Demand analysis in the Middle Olifants sub-basin of South Africa: The case of Mining," Discussion Papers 49927, University of Bonn, Center for Development Research (ZEF).
    3. José Féres & Arnaud Reynaud, 2005. "Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil," Land Economics, University of Wisconsin Press, vol. 81(3).
    4. 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.

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    More about this item

    Keywords

    input distance function; industrial water demand; translog form; water; price elasticity; water; shadow price; shadow price of water; cost function; linear programming; firms; input distance approach; Indian; Indian manufacturing plants; elasticity; price; manufacturing plants;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D20 - Microeconomics - - Production and Organizations - - - General
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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