[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/ags/iaae06/25748.html
   My bibliography  Save this paper

Marginal Productivity Analysis of Global Inter-sectoral Water Demand

Author

Listed:
  • Strzepek, Kenneth M.
  • Juana, James S.
  • Kirsten, Johann F.
Abstract
There is growing evidence that freshwater availability is declining, while competition among sectors for the withdrawal of this scarce resource is rapidly increasing,(Rosegrant et a, 2002). Therefore, the need to promote inter-sectoral water use efficiency from the demand-side management has necessitated a study to investigate the responsiveness of different productive sectors and sub-sectors to water prices. Extracting data from the GTAP and UNIDO databases and adopting the marginal productive approach by Wang and Lall (2002),and using the two-stage-least squares method, the translog production function is estimated, from which the output and price elasticities and the marginal value of water is computed for thirteen sectors. The results indicate that generally, water use by all the production sectors is fairly price elastic, implying that water price could be used to improve water use efficiency. However, there are varying degrees of price elasticities of sectoral water demand for the different sectors. The results also suggest that, to improve industrial water use efficiency, water prices should at least reflect the marginal value of water in the different sectors. This policy should be used in complimented with other mandatory policies like fixed quantity of freshwater intake by industries, water treatment and recycling, effluent charges etc.

Suggested Citation

  • Strzepek, Kenneth M. & Juana, James S. & Kirsten, Johann F., 2006. "Marginal Productivity Analysis of Global Inter-sectoral Water Demand," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25748, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25748
    DOI: 10.22004/ag.econ.25748
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25748/files/pp060764.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.25748?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Steven Renzetti (ed.), 2002. "The Economics of Industrial Water Use," Books, Edward Elgar Publishing, number 2196.
    2. 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.
    3. Frederick G. Babin & Cleve E. Willis & P. Geoffrey Allen, 1982. "Estimation of Substitution Possibilities between Water and Other Production Inputs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 148-151.
    4. Rosegrant, Mark W. & Cai, Ximing & Cline, Sarah A., 2002. "Global water outlook to 2025," Food policy reports 14, International Food Policy Research Institute (IFPRI).
    5. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kumar, Surender, 2004. "Analysing industrial water demand in India: An input distance function approach," Working Papers 04/12, National Institute of Public Finance and Policy.
    2. Linz, Teresa & Tsegai, Daniel W., 2009. "Industrial Water Demand analysis in the Middle Olifants sub-basin of South Africa: The case of Mining," Discussion Papers 49927, University of Bonn, Center for Development Research (ZEF).
    3. repec:npf:wpaper:12 is not listed on IDEAS
    4. repec:ind:nipfwp:12 is not listed on IDEAS
    5. Vallés-Giménez, Jaime & Zárate-Marco , Anabel, 2013. "Environmental taxation and industrial water use in Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 25, pages 133-162.
    6. Fernando Arbués & Maria García-Valiñas & Inmaculada Villanúa, 2010. "Urban Water Demand for Service and Industrial Use: The Case of Zaragoza," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(14), pages 4033-4048, November.
    7. 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).
    8. Steven Renzetti & Joel Brueau & Michel Villeneuve, 2009. "Self-selection bias and manufacturing firms' demand for water recirculation," Working Papers 0902, Brock University, Department of Economics, revised Feb 2009.
    9. Nicholas Rivers & Steven Groves, 2013. "The Welfare Impact of Self-supplied Water Pricing in Canada: A Computable General Equilibrium Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 55(3), pages 419-445, July.
    10. Jos順鲥s & Arnaud Reynaud & Alban Thomas, 2012. "Water reuse in Brazilian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1417-1427, April.
    11. Worthington, Andrew C., 2010. "Commercial and Industrial Water Demand Estimation: Theoretical and Methodological Guidelines for Applied Economics Research/Estimación de la demanda de agua comercial e industrial: pautas teóricas y m," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 237-258, Agosto.
    12. Jeßberger Christoph & Sindram Maximilian & Zimmer Markus, 2011. "Global Warming Induced Water-Cycle Changes and Industrial Production – A Scenario Analysis for the Upper Danube River Basin," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(3), pages 415-439, June.
    13. Tobarra-González, Miguel Ángel, 2018. "The Value of Water in the Manufacture Industry and its Implications for Water Demand Policies. The Case of Chile /Valor del agua en la industria manufacturera de Chile y sus implicaciones para las pol," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 945-960, Septiembr.
    14. Randy A. Becker, 2016. "Water Use and Conservation in Manufacturing: Evidence from U.S. Microdata," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(12), pages 4185-4200, September.
    15. Dachraoui, Kaïs Harchaoui, Tarek, 2004. "Utilisation de l'eau, prix fictifs et productivité du secteur canadien des entreprises," Série de documents de recherche sur l'analyse économique (AE) 2004026f, Statistics Canada, Direction des études analytiques.
    16. 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.
    17. Dachraoui, Kaïs Harchaoui, Tarek, 2004. "Water Use, Shadow Prices and the Canadian Business Sector Productivity Performance," Economic Analysis (EA) Research Paper Series 2004026e, Statistics Canada, Analytical Studies Branch.
    18. 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.
    19. Wang, Hua & Lall, Somik, 1999. "Valuing water for Chinese industries : a marginal productivity assessment," Policy Research Working Paper Series 2236, The World Bank.
    20. Dilek Uz & Steven Buck, 2020. "Comparing Water Use Forecasting Model Selection Criteria: The Case of Commercial, Institutional, and Industrial Sector in Southern California," Sustainability, MDPI, vol. 12(10), pages 1-21, May.
    21. Cristina de Gispert, 2004. "The Economic Analysis of Industrial Water Demand: A Review," Environment and Planning C, , vol. 22(1), pages 15-30, February.
    22. Tsegai, Daniel W. & Linz, Teresa & Kloos, Julia, 2009. "Economic analysis of water supply cost structure in the Middle Olifants sub-basin of South Africa," Discussion Papers 49926, University of Bonn, Center for Development Research (ZEF).

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae06:25748. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.