Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/220232
Authors: 
Féres, José
Reynaud, Arnaud
Year of Publication: 
2015
Series/Report no.: 
Discussion Paper No. 143
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.
JEL: 
Q21
Q25
L5
Document Type: 
Working Paper

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