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Water reuse in Brazilian manufacturing firms

  • José Féres



This paper examines the factors influencing manufacturing firms´ water reuse decision and analyzes whether the structure of intake water demand differs between firms that adopt water reuse practices and those which do not. The first stage of the estimation model involves a Probit analysis of 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 in reducing intake water demand. Estimates of the water demand price elasticities indicates that plants that reuse water are more sensitive to water price increases than plants without access to reuse technologies.

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Paper provided by Latin American and Caribbean Environmental Economics Program in its series Working Papers with number 200702.

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Length: 20 pages
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Handle: RePEc:lae:wpaper:200702
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  1. 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.
  2. 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.
  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.
  4. 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.
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