Water reuse in Brazilian manufacturing firms
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Date
2007
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Publisher
Latin American and Caribbean Environmental Economics Program (LACEEP), Turrialba, CR
Abstract
This paper examines the factors influencing manufacturing firms' water reuse decision and
analyzes whether the structure of intake water demand differs between firms that adopt water
reuse practices and those which do not. The first stage of the estimation model involves a Probit
analysis of 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
in reducing intake water demand. Estimates of the water demand price elasticities indicates
that plants that reuse water are more sensitive to water price increases than plants without
access to reuse technologies.
Description
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Working Paper
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Keywords
WATER REUSE, INDUSTRIAL WATER DEMAND, BRAZIL