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Industrial Water Demand analysis in the Middle Olifants sub-basin of South Africa: The case of Mining AgEcon
Linz, Teresa; Tsegai, Daniel W..
This paper seeks to determine water demand of the mining sector in the Middle Olifants sub-basin of South Africa. Despite the growing economic importance of mining in the area, only little is known about its water demand and the role of water in the mines´ extraction process. By means of econometric estimation water price elasticities as well as substitution possibilities between water and other inputs are derived to analyze the response of mines to changes in water tariffs. Using primary data, a translog cost function is estimated for five mines operating in the area. Cost share equations of each input are specified and estimated using Seemingly Unrelated Regression (SUR) method. The mean cost share of water for all five mines, with around 1%, is...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/49927
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Evaluating concavity for production and cost functions AgEcon
Baum, Christopher F.; Linz, Teresa.
Tipo: Article Palavras-chave: Research Methods/ Statistical Methods.
Ano: 2009 URL: http://purl.umn.edu/122709
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Economic analysis of water supply cost structure in the Middle Olifants sub-basin of South Africa AgEcon
Tsegai, Daniel W.; Linz, Teresa; Kloos, Julia.
Using data gathered from the National Treasury of South Africa, we examine the structure of water supply costs and tariffs of Water Service Authorities (WSAs) in the Middle Olifants sub-basin of South Africa. Using the translog cost function method, the marginal cost of water supply and economies of scale are estimated. Comparison of tariffs and marginal costs show that the estimated marginal cost is higher than the actual tariff paid by consumers. This implies that WSAs in the Middle Olifants are not charging enough to recover the costs of the water services. Thus, among other things, pricing of water at its marginal cost would partly assist in solving the cost recovery problem. Raised tariffs would in turn contribute to improved efficiency of water use....
Tipo: Working or Discussion Paper Palavras-chave: Translog cost function; Water supply; Water Service Authority; Middle Olifants; South Africa; Environmental Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/49926
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