Self-selection bias and manufacturing firms' demand for water recirculation

Steven Renzetti, Joel Bruneau () and Michel Villeneuve ()
Additional contact information
Michel Villeneuve: Environment Canada

No 902, Working Papers from Brock University, Department of Economics

Abstract: Relatively little is known of the factors which might influence firms' water recirculation decisions. This paper estimates an econometric model that accounts for potential self-selection bias and considers two facets of firms' recirculation behaviour: 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 data from Environment Canada's 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.

Keywords: water demand; rericulation; Heckman (search for similar items in EconPapers)
JEL-codes: Q21 Q25 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2009-02, Revised 2009-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://brocku.ca/repec/pdf/0902.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:brk:wpaper:0902

Access Statistics for this paper

More papers in Working Papers from Brock University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Jean-Francois Lamarche ().