Quanto vale a água que usamos? Projeções dos impactos econômicos de restrições ao uso e elevação de preços da água na região metropolitana de Belo Horizonte
Aline Souza Magalhães,
Terciane Carvalho (),
Kênia Barreiro de Souza and
Edson Domingues ()
Additional contact information
Aline Souza Magalhães: Cedeplar-UFMG
Kênia Barreiro de Souza: Cedeplar-UFMG
No 528, Textos para Discussão Cedeplar-UFMG from Cedeplar, Universidade Federal de Minas Gerais
The shortage of water for human consumption in Brazil has intensified in recent years. No different is the situation of the metropolitan region of Belo Horizonte (RMBH) who witnesses the most severe shortage of water in its history. In this context, this study estimates the economic impact of restrictions on supply or water price increases using an inter-regional computable general equilibrium model, the MINAS-Água, for 34 municipalities of the RMBH. We seek to understand the importance of water as a productive input and in household consumption, and how the limitation of its use affects the economic decisions of sectors and households. The article proceeds to propose a general equilibrium approach to the subject, thus considering the interrelationships of markets, supply chains and the spatial heterogeneity of the distribution of economic activity in the RMBH. In general, the results of the simulations indicate that for a cut of 1% in total water consumption in the RMBH, an average increase of 7.3% in water tariff would be required. The overall effect of the use of water appears to be quite inelastic since the reduction of consumption is 1/7 of the rise in prices.
Keywords: water scarcity; Metropolitan region of Belo Horizonte; elasticities; computable general equilibrium (search for similar items in EconPapers)
JEL-codes: Q25 R10 R13 (search for similar items in EconPapers)
Pages: 25 pages
New Economics Papers: this item is included in nep-cmp
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cdp:texdis:td528
Ordering information: This working paper can be ordered from
Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil
Access Statistics for this paper
More papers in Textos para Discussão Cedeplar-UFMG from Cedeplar, Universidade Federal de Minas Gerais Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil. Contact information at EDIRC.
Bibliographic data for series maintained by Gustavo Britto ().