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Assessing the Impact of Environmental Regulation on Industrial Water use: Evidence from Brazil

José Féres and Arnaud Reynaud ()

No 143, Discussion Papers from Instituto de Pesquisa Econômica Aplicada - IPEA

Abstract: This paper aims at characterizing water demand by Brazilian manufacturing plants located in São Paulo and at assessing the potential impacts of environmental policies on industrial water use. We first show that the price elasticity of the water demand, -1.0 on average, is high enough for a water charge to act as an effective policy tool for reducing water consumption. Results also provide some evidence of a tradeoff between water quality improvement and water conservation policies, since more stringent environmental standards may lead to a higher water demand. A joint use of environmental norms and water charges may reconcile both policy goals. Este artigo tem por objetivo caracterizar a demanda de água nas indústrias localizadas no Estado de São Paulo e avaliar o impacto potencial da aplicação de instrumentos de política ambiental sobre o uso industrial da água. Primeiramente, mostra-se que a elasticidade-preço estimada para a demanda de água, de –1,0 em média, é suficientemente alta para que a implementação da cobrança pelo uso de recursos hídricos seja um mecanismo eficaz de incentivo à redução da demanda de água para uso industrial. Os resultados também apontam para a existência de um trade-off entre políticas de controle de poluição e aquelas que visam à conservação quantitativa de recursos hídricos, uma vez que normas mais severas de padrões de descarga de efluentes podem levar a um aumento da demanda de água. O uso combinado de normas para descarga de efluentes e da cobrança pelo uso da água podem eliminar este trade-off promovendo o uso racional de recursos hídricos em termos qualitativos e quantitativos.

Pages: 32 pages
Date: 2015-01
New Economics Papers: this item is included in nep-env
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http://www.ipea.gov.br/portal/images/stories/PDFs/TDs/ingles/dp_143.pdf (application/pdf)

Related works:
Journal Article: Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil (2005) Downloads
Working Paper: Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence From Brazil (2005) Downloads
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