• Environmental and Resource Economics Review
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• v.15 no.5
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• pp.961-974
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• 2006

This paper estimates output and price elasticities of the industrial water in order to provide the government with tools that help make educated decisions with regard with the water provision policies rendering the latter more efficient. The estimated output elasticity produces useful insights on the role of industrial water as an input into the production process while the estimate of price elasticity enablesus to forecast the effects of various water pricing policies. This paper employs the marginal productivity method in order to estimate the abovementioned elasticities. The magnitude of the estimated output elasticity imply that the value of industrial water is much higher than its average price while the price elasticity estimate suggests that the water pricing policy can be an effective tool of controlling the demand for industrial water.

• Journal of Korea Water Resources Association
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• v.40 no.11
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• pp.869-876
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• 2007

This paper estimates the output and price elasticities of disaggregated industrial water in order to afford some information for improving the efficiency of government water policy. This paper uses the marginal productivity method for estimating the output and price elasticities of industrial water. The estimated output elasticity shows that the value of industrial water is much higher than the average price of industrial water and the estimated price elasticity shows that the water pricing policy is effective for controlling the demand of industrial water.

• Environmental and Resource Economics Review
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• v.14 no.2
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• pp.475-491
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• 2005

This study reviews various problems associated with the method of estimating the demand for industrial water that was employed in the Water Vision 2020 and it suggests an alternative econometric method. Comparing with the data cited in the Report on Industrial Census, estimates obtained by employing the concept of demand function are more exact compared to those offered by the Water Vision 2020. The amount of industrial water in 1998 was estimated at 2.8 billion tons decreasing by 2003. By employing the concept of demand function, this study shows that the amount of industrial water was 2.1 billion tons in 2003 while according to the Water Vision 2020 it amounted to 3.3 billion tons in 2001. Thus, it appears that the amount of industrial water in the Water Vision 2020 has been overestimated. This study also shows that the industrial water demand can be controlled by means of certain pricing policies. Finally, we argue that the demand for industrial water should be estimated by taking account of economic variables such as water price and output.