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Water Reuse in Brazilian Manufacturing Firms

Author

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  • José Féres
  • Arnaud Reynaud
  • Alban Thomas

Abstract

This paper examines the factors influencing water reuse in manufacturing firms and analyzes whether the structure of intake water demand differs between firms that adopt water reuse practices and those which do not. To this purpose, we estimate a two-stage econometric model based on a sample of 447 industrial facilities located in the Paraíba do Sul river basin. The first stage applies a probit model for 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 reducing intake water demand. Estimates of the water demand price elasticities indicate that plants reusing water are more sensitive to water price increases than plants without access to reuse technologies.

Suggested Citation

  • José Féres & Arnaud Reynaud & Alban Thomas, 2007. "Water Reuse in Brazilian Manufacturing Firms," Discussion Papers 1257, Instituto de Pesquisa Econômica Aplicada - IPEA.
    • Handle: RePEc:ipe:ipetds:1257
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    References listed on IDEAS

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    1. 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.
    2. 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.
    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. 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).
    5. 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.
    6. Hua Wang & Somik Lall, 2002. "Valuing water for Chinese industries: a marginal productivity analysis," Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 759-765.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Isabella Georgiou & Serena Caucci & Jonathan Clive Morris & Edeltraud Guenther & Peter Krebs, 2023. "Assessing the Potential of Water Reuse Uptake Through a Private–Public Partnership: a Practitioner’s Perspective," Circular Economy and Sustainability, Springer, vol. 3(1), pages 199-220, March.
    2. Oscar Zapata, 2018. "Industrial Wastewater Treatment and Reuse in a Developing Country Context: Evidence at the Firm Level from Ecuador," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(02), pages 1-28, April.
    3. 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.
    4. Shiwang Yu & Jianxia Bao & Wen Ding & Xue Chen & Xiaonan Tang & Jianli Hao & Wei Zhang & Prateek Singh, 2021. "Investigating the Relationship between Public Satisfaction and Public Environmental Participation during Government Treatment of Urban Malodorous Black River in China," Sustainability, MDPI, vol. 13(6), pages 1-17, March.
    5. Mardones, Cristian & Orellana, Antonia, 2023. "Estimating production functions to determine the marginal economic value and price elasticity of water in the Chilean industrial sector," Utilities Policy, Elsevier, vol. 85(C).

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