Industrial Water Demand and Shadow Price
Use of water may be broadly classified into three consumption categories: agricultural, industrial, and domestic. While there is substantial literature dealing with the agricultural 1 and domestic 2 uses of water, relatively little has systematically analyzed industrial water use, especially in the context of developing countries. 3 This may partly be due to the lack of reliable information on water consumption at the firm level. There is no consensus on the range of industrial water demand price elasticity and the sensitivity of water demand to other factors such as other input prices and output levels. The question of assessing the economic value (shadow price) of water still remains open.