WEAI/AERE 2012 - Individual Paper Abstract
Title: A Longitudinal Study of Water Recycling in Manufacturing Plants
Author(s): Steven RENZETTI, Brock University, 500 Glenridge Avenue, St. Catharines, Ontario, L2S 3A1, Canada, 905-688-5550, 905-688-6388, steven.renzetti at brocku dot ca; Joel Bruneau, University of Saskatchewan [Photo credit: Diane Dupont]
Abstract: Industrial water use is an important part of most developed economies total water use and one which is differentiated from other sectors' water use by the prevalence of recycling. Previous research applied to cross sectional surveys has identified the role of input prices and the scale of plant operations in determining the volume of water recirculated. We, on the other hand, employ longitudinal data to investigate the frequency of recirculation (that is, whether manufacturing plants recirculate or not). Our analysis of the data from several cross sections from Canada's Industrial Water Survey data shows that, while there are a number of plants that either never or always recirculate water, there is a sizable minority of plants who at times are observed to be recirculating and at other times are observed not to be recirculating. In order to investigate these phenomena, we construct a 'pseudo-panel' of data (Deaton, 1985) and estimate both a fixed effects and GMM model of recycling frequency. Our estimation model provides insights into industrial water recycling. In particular, water-related input prices and, in the case of the GMM estimator, the scale of plant operations are found to be significant in explaining the likelihood of recirculation.