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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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