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Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence From Brazil

José Féres and Arnaud Reynaud ()

No 1079, Discussion Papers from Instituto de Pesquisa Econômica Aplicada - IPEA

Abstract: This paper aims at characterizing water demand by Brazilian manufacturing plantslocated in São Paulo and at assessing the potential impacts of environmental policieson 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 forreducing water consumption. Results also provide some evidence of a tradeoffbetween water quality improvement and water conservation policies, since morestringent environmental standards may lead to a higher water demand. A joint use ofenvironmental norms and water charges may reconcile both policy goals.

Pages: 28 pages
Date: 2005-03
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http://www.ipea.gov.br/portal/images/stories/PDFs/TDs/td_1079.pdf (application/pdf)

Related works:
Working Paper: Assessing the Impact of Environmental Regulation on Industrial Water use: Evidence from Brazil (2015) Downloads
Journal Article: Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil (2005) Downloads
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