Estimation of Water Demand, its Relationship with Other Inputs and the Impact of Technology on Water Consumption in Qazvin Province

Document Type : Research Paper

Authors

1 Tarbiat Modares University

2 proffesor

3 professor

Abstract

The industrial sector in Qazvin province has a great importance, which has a relatively high share in value added and employment. Therefore, development of this sector is one of the economic goals. The development of the industrial sector requires the consumption of more factors of production. One of the most important inputs used in this section is water. Due to the limited water resources of the province, water demand management in this sector is especially important. One of the most effective tools to reduce water consumption is the use of new methods and technologies for saving water consumption. Therefore, the water demand function in the industrial sector was estimated using the data of ISIC codes and time series (2010-2014) firstly, then the interaction between technology and other inputs was investigated with water. In order to achieve the research objectives, a seemingly unrelated regression method was  used. The results showed that water is a low-elasticity product, since its elasticity was calculated 0.069. The coefficient of interaction of the price of this input with the technology of 0.002-show that the water consumption has decreased somewhat over time. The technology coefficient was calculated 0.033, which implies an increase in costs over time. The results of calculating of Morishima elasticity indicate the substitution of water with other inputs used in the industry sector in Qazvin province.

Keywords


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