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The Economic Analysis of Industrial Water Demand: A Review

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  • Cristina de Gispert

    (Department of Public Finance, University of Barcelona, and Barcelona Institute of Economics (IEB), Av.Diagonal 690, Torre 4-Planta 2, 08034 Barcelona, Spain)

Abstract

The author reviews economic studies addressing water use with the aim of identifying key empirical questions that are relevant to the estimation of the demand for water. In particular, the effect of price on demand is specified and the way in which the industrial use of water is characterised is explored; this is markedly different from domestic water use. The main conclusion is that more detailed knowledge is necessary to establish the response of industrial firms to changes in the price of water (or taxes), and thus to guarantee the efficient regulation of water resources.

Suggested Citation

  • Cristina de Gispert, 2004. "The Economic Analysis of Industrial Water Demand: A Review," Environment and Planning C, , vol. 22(1), pages 15-30, February.
    • Handle: RePEc:sae:envirc:v:22:y:2004:i:1:p:15-30
    DOI: 10.1068/c20s
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. John E. Schefter, 1987. "Increasing Block Rate Tariffs as Faulty Transmitters of Marginal Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 63(1), pages 21-33.
    4. Julie A. Hewitt & W. Michael Hanemann, 1995. "A Discrete/Continuous Choice Approach to Residential Water Demand under Block Rate Pricing," Land Economics, University of Wisconsin Press, vol. 71(2), pages 173-192.
    5. Shin, Jeong-Shik, 1985. "Perception of Price When Price Information Is Costly: Evidence from Residential Electricity Demand," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 591-598, November.
    6. Paul E. Polzin, 1984. "The Specification of Price in Studies of Consumer Demand under Block Price Scheduling: Additional Empirical Evidence," Land Economics, University of Wisconsin Press, vol. 60(3), pages 306-309.
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