The Economic Analysis of Industrial Water Demand: A Review

Gispert, Cristina de

doi:10.1068/c20s

Cited by 16 publications

(10 citation statements)

References 21 publications

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“…While industrial water recirculation has been studied by engineers and systems analysts (Lens et al 2002), relatively little analysis has been carried out to understand the economic dimensions of industrial water use. Early efforts are surveyed by Renzetti (2002) and de Gispert (2004). The most recent efforts to estimate industrial water demands are Dupont and Renzetti (2001), Reynaud (2003), and Chao‐Hsien et al (2006).…”

Section: Introductionmentioning

confidence: 99%

Manufacturing Firms’ Demand for Water Recirculation

Bruneau¹,

Renzetti²,

Villeneuve³

2010

Canadian J Agri Economics

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Relatively little is known about the factors that influence firms’ water recirculation decisions. This paper estimates an econometric model that jointly considers two facets of firms’ recirculation behavior: first, the discrete decision of whether to recirculate and, second, the decision of how much to recirculate. The model is estimated by applying the Heckman two‐stage estimation procedure to cross‐sectional data from Environment Canada's 1996 Industrial Water Use Survey. In the first stage, long‐run factors, such as relative water scarcity and production technologies, are found to influence the decision whether to recirculate water. In the second stage, the imputed prices of intake water and water recirculation as well as the scale of operations are found to influence the choice of the optimal quantity of water to recirculate. Les facteurs qui influencent les décisions des entreprises concernant le recyclage de l’eau sont assez peu connus. Dans le présent article, nous avons estimé un modèle économétrique qui tient compte de deux aspects du comportement des entreprises envers le recyclage de l’eau : le choix de recycler l’eau ou non et le choix de la quantité d’eau à recycler. Nous avons estimé le modèle à l’aide de la procédure en deux étapes de Heckman que nous avons appliquée à des données transversales tirées de l’Enquête sur l’utilisation industrielle de l’eau, réalisée par Environnement Canada en 1996. À la première étape, des facteurs à long terme tels que la rareté relative de l’eau et les technologies de production influent sur la décision de recycler l’eau ou non. À la deuxième étape, les prix imputés du captage et du recyclage de l’eau ainsi que l’envergure des opérations influent sur le choix de la quantité optimale d’eau à recycler.

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Section: Introductionmentioning

confidence: 99%

Manufacturing Firms’ Demand for Water Recirculation

Bruneau¹,

Renzetti²,

Villeneuve³

2010

Canadian J Agri Economics

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“…Broadening the scope of analysis and decision‐making provides potential benefits by expanding the range of possible solutions. It also increases the costs related to the demands for data‐intensive descriptions of systems and the involvement of more actors in policy design and implementation (Hering et al , ; de Gispert, ). Inclusiveness can increase problem‐solving capacity and the legitimacy of management structures, but may also lead to inefficient decision‐making and conflict expansion.…”

Section: Introductionmentioning

confidence: 99%

Water Management Across Borders, Scales and Sectors: Recent developments and future challenges in water policy analysis

et al. 2016

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Integrated water resource management (IWRM) is widely accepted and has been implemented though international, national and regional water management guidelines. Nonetheless, concrete implementation of IWRM gives rise to new questions for policy analysis. Scholars interested in water regulation, the design of effective and efficient policy instruments, and structures of participative and multi‐level policy processes face challenges regarding research design, concepts and empirical approaches. This special issue integrates research about regional, national and transboundary policy perspectives on water management in seven countries, four continents and two transnational water bodies. From the six articles presented in this special issue, we learn more about how to define integration, to think about borders and scales and to theoretically and empirically study collaborative management in water policy analysis. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

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“…[], Arbués et al . [], Worthington and Hoffman [], and Nauges and Whittington []), but there are fewer referring to industrial sectors (see reviews by Renzetti [], de Gispert [], and Worthington []) and very few related to the services sector. We have found only two studies that focus on water demand in services [ Lynne et al ., ; Moeltner and Stoddard , ] and another five that provide details of service sector activities together with the industrial sector [ Williams and Suh , ; Schneider and Whitlatch , ; Reynaud , ; Dachraoui and Harchaoui , ; Bell and Griffin , ].…”

Section: Introductionmentioning

confidence: 99%

Economic analysis of the water demand in the hotels and restaurants sector: Shadow prices and elasticities

Angulo

Atwi

Ortí

et al. 2014

Water Resources Research

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Despite the growing economic importance of tourism, and its impact on relative water shortage, little is known about the role that water plays in the productive process of hotels and restaurants and, therefore, the possible implications of water demand management policy for this sector. This study aims to fill this gap. It is based on the microdata of 676 firms in the sector, operating in the city of Zaragoza (Spain) for a 12 year period. Based on the Translog cost function, we estimate the shadow price of water in the short run and, from a long-run perspective, its direct price elasticity, its cross elasticities relative to labor, capital, and supplies, and its elasticity with respect to the level of output. The results obtained show that water provides sector firms returns that are on average higher than its price, although in the case of hotels the margin is really narrow. This situation provides policy makers with a margin for applying price increases without affecting the sector's viability, with some caution in the case of hotels. Water demand elasticity equals 20.38 in the case of hotels, but it is not significant in the case of restaurants and bar-cafes; hence, only in hotels is there potential for influencing water use patterns, encouraging the resource's conservation through pricing policy. Moreover, capital is a substitutive factor of water, and the elasticity of water with respect to output is 0.40, all of which should also be considered by policy makers in water resource management.

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The Economic Analysis of Industrial Water Demand: A Review

Cited by 16 publications

References 21 publications

Manufacturing Firms’ Demand for Water Recirculation

Manufacturing Firms’ Demand for Water Recirculation

Water Management Across Borders, Scales and Sectors: Recent developments and future challenges in water policy analysis

Economic analysis of the water demand in the hotels and restaurants sector: Shadow prices and elasticities

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