Water Reuse in Brazilian Manufacturing Firms
This paper examines the factors influencing water reuse in manufacturing firms and analyzes whether the structure of intake water demand differs between firms that adopt water reuse practices and those which do not. To this purpose, we estimate a two-stage econometric model based on a sample of 447 industrial facilities located in the Paraíba do Sul river basin. The first stage applies a probit model for the water reuse decision and the second stage employs an endogenous switching regression to estimate the intake water demand equations. Results suggest that water charges may act as an effective mechanism in inducing firms to undertake water reuse investments and reducing intake water demand. Estimates of the water demand price elasticities indicate that plants reusing water are more sensitive to water price increases than plants without access to reuse technologies.
|Date of creation:||Jan 2007|
|Date of revision:|
|Contact details of provider:|| Postal: SBS - Quadra 01 - Bloco J - Ed. BNDES, Brasília, DF - 70076-90|
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- 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.
- 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.
- 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.
- José Féres & Arnaud Reynaud, 2005.
"Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence From Brazil,"
1079, Instituto de Pesquisa Econômica Aplicada - IPEA.
- 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).
- José Féres & Arnaud Reynaud, 2015. "Assessing the Impact of Environmental Regulation on Industrial Water use: Evidence from Brazil," Discussion Papers 0143, Instituto de Pesquisa Econômica Aplicada - IPEA.
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