Urban water demand for manufacturing, construction and service industries: a microdata analysis
This study analyses the industrial demand for urban water using a panel dataset of firms operating in the city of Zaragoza (Spain) and looking at three sectors (manufacturing, construction and services) disaggregated on 24 subsectors. Evidence in favour of using the marginal price rather than the av...
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IWA Publishing
2021
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oai:doaj.org-article:990906b5714d4c6c8b5df11f145095fd2021-11-05T17:03:28ZUrban water demand for manufacturing, construction and service industries: a microdata analysis2709-80282709-803610.2166/aqua.2021.105https://doaj.org/article/990906b5714d4c6c8b5df11f145095fd2021-05-01T00:00:00Zhttp://aqua.iwaponline.com/content/70/3/274https://doaj.org/toc/2709-8028https://doaj.org/toc/2709-8036This study analyses the industrial demand for urban water using a panel dataset of firms operating in the city of Zaragoza (Spain) and looking at three sectors (manufacturing, construction and services) disaggregated on 24 subsectors. Evidence in favour of using the marginal price rather than the average price is obtained, and the selection of the price is found to influence the value of the elasticities. Based on a translog cost function, the direct price elasticity of water (−0.86), the output elasticity (0.73) and the cross-price elasticities between water and capital, labour and supplies (being all of them substitutes) were estimated. By subsectors, the influence of price is only significant in those with a higher share of water in the total production cost. These results indicate that pricing can be used as a tool for managing water demand by promoting conservation of the resource. However, these results also indicate that the simultaneous use of other instruments is advisable to reinforce the impact of pricing policy on water consumption. HIGHLIGHTS The determinants of industrial water demand are analysed using firms’ microdata.; Manufacturing, construction and services activities are considered.; The marginal water price is a more suitable specification than the average one.; The price of water can be effective for managing water demand.; Price effectiveness is conditioned by the water share in the total production cost.;Pilar Gracia-de-RenteríaRamón BarberánJesús MurIWA Publishingarticleelasticitiesindustrial activitiesmicrodataurban waterwater demandEnvironmental technology. Sanitary engineeringTD1-1066Environmental sciencesGE1-350ENAqua, Vol 70, Iss 3, Pp 274-288 (2021) |
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DOAJ |
| collection |
DOAJ |
| language |
EN |
| topic |
elasticities industrial activities microdata urban water water demand Environmental technology. Sanitary engineering TD1-1066 Environmental sciences GE1-350 |
| spellingShingle |
elasticities industrial activities microdata urban water water demand Environmental technology. Sanitary engineering TD1-1066 Environmental sciences GE1-350 Pilar Gracia-de-Rentería Ramón Barberán Jesús Mur Urban water demand for manufacturing, construction and service industries: a microdata analysis |
| description |
This study analyses the industrial demand for urban water using a panel dataset of firms operating in the city of Zaragoza (Spain) and looking at three sectors (manufacturing, construction and services) disaggregated on 24 subsectors. Evidence in favour of using the marginal price rather than the average price is obtained, and the selection of the price is found to influence the value of the elasticities. Based on a translog cost function, the direct price elasticity of water (−0.86), the output elasticity (0.73) and the cross-price elasticities between water and capital, labour and supplies (being all of them substitutes) were estimated. By subsectors, the influence of price is only significant in those with a higher share of water in the total production cost. These results indicate that pricing can be used as a tool for managing water demand by promoting conservation of the resource. However, these results also indicate that the simultaneous use of other instruments is advisable to reinforce the impact of pricing policy on water consumption. HIGHLIGHTS
The determinants of industrial water demand are analysed using firms’ microdata.;
Manufacturing, construction and services activities are considered.;
The marginal water price is a more suitable specification than the average one.;
The price of water can be effective for managing water demand.;
Price effectiveness is conditioned by the water share in the total production cost.; |
| format |
article |
| author |
Pilar Gracia-de-Rentería Ramón Barberán Jesús Mur |
| author_facet |
Pilar Gracia-de-Rentería Ramón Barberán Jesús Mur |
| author_sort |
Pilar Gracia-de-Rentería |
| title |
Urban water demand for manufacturing, construction and service industries: a microdata analysis |
| title_short |
Urban water demand for manufacturing, construction and service industries: a microdata analysis |
| title_full |
Urban water demand for manufacturing, construction and service industries: a microdata analysis |
| title_fullStr |
Urban water demand for manufacturing, construction and service industries: a microdata analysis |
| title_full_unstemmed |
Urban water demand for manufacturing, construction and service industries: a microdata analysis |
| title_sort |
urban water demand for manufacturing, construction and service industries: a microdata analysis |
| publisher |
IWA Publishing |
| publishDate |
2021 |
| url |
https://doaj.org/article/990906b5714d4c6c8b5df11f145095fd |
| work_keys_str_mv |
AT pilargraciaderenteria urbanwaterdemandformanufacturingconstructionandserviceindustriesamicrodataanalysis AT ramonbarberan urbanwaterdemandformanufacturingconstructionandserviceindustriesamicrodataanalysis AT jesusmur urbanwaterdemandformanufacturingconstructionandserviceindustriesamicrodataanalysis |
| _version_ |
1718444115016810496 |