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Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence From Brazil

  • José Féres
  • Arnaud Reynaud

This paper aims at characterizing water demand by Brazilian manufacturing plantslocated in São Paulo and at assessing the potential impacts of environmental policieson industrial water use. We first show that the price elasticity of the water demand,-1.0 on average, is high enough for a water charge to act as an effective policy tool forreducing water consumption. Results also provide some evidence of a tradeoffbetween water quality improvement and water conservation policies, since morestringent environmental standards may lead to a higher water demand. A joint use ofenvironmental norms and water charges may reconcile both policy goals.

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Paper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1079.

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Length: 28 pages
Date of creation: Mar 2005
Date of revision:
Handle: RePEc:ipe:ipetds:1079
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  1. Diane Dupont & Steven Renzetti, 2001. "The Role of Water in Manufacturing," Environmental & Resource Economics, 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, European Association of Environmental and Resource Economists, vol. 25(2), pages 213-232, June.
  3. Li, Baibing & Martin, Elaine B. & Morris, A. Julian, 2002. "On principal component analysis in L1," Computational Statistics & Data Analysis, Elsevier, vol. 40(3), pages 471-474, September.
  4. Surender Kumar, 2009. "Analyzing Industrial Water Demand in India: An Input Distance Function Approach," Working Papers id:2178, eSocialSciences.
  5. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
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