Estimating the structure of industrial water demands: the case of Canadian manufacturing

This study considers water use by Canadian manufacturing firms. The estimation of water demands is based on a detailed cross-sectional survey of establishment-level observations on water prices, quantities, and expenditures. Industrial water use is modeled as having four components: intake, treatmen...

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Bibliographic Details
Published in:Land economics 1992-11, Vol.68 (4), p.396-404
Main Author: Renzetti, S. (Brock University, St. Catherines, Ontario, Canada)
Format: Article
Language:English
Subjects:
AGUA
Average cost
CANADA
Conservation
Corporations
Cost estimates
Cost functions
COSTOS
COSTS
COUT
DEMAND
DEMANDA
DEMANDE
EAU
ECONOMETRIC MODELS
Economic models
Economic statistics
ELASTICIDAD DE LOS PRECIOS
ELASTICITE DES PRIX
Functions
Incentives
INDUSTRIA
INDUSTRIAL APPLICATIONS
INDUSTRIE
INDUSTRY
Land economics
MANUFACTURE
Manufacturing
Manufacturing industries
MODELE ECONOMETRIQUE
MODELOS ECONOMETRICOS
PRICE ELASTICITIES
Price elasticity
PROCESAMIENTO
PROCESSING
Statistical analysis
TRAITEMENT
USO DEL AGUA
UTILISATION DE L'EAU
WATER
Water consumption
Water demand
Water supply
Water treatment
WATER USE
Water utilization
Water-supply, Industrial
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Description
Summary:This study considers water use by Canadian manufacturing firms. The estimation of water demands is based on a detailed cross-sectional survey of establishment-level observations on water prices, quantities, and expenditures. Industrial water use is modeled as having four components: intake, treatment prior to use, recirculation, and discharge. Average values for the estimated own-price elasticity for water intake range from -0.1534 to -0.5885. Water recirculation is found to be a substitute for both water intake and water discharge. This confirms that expanding the use of economic incentives (e.g., effluent fees) may be effective in encouraging firms to reduce their water use while increasing in-plant recirculation.
ISSN:0023-7639
1543-8325
DOI:10.2307/3146696