Abstract |
An analysis of five industries that are major users of public utilities was conducted to determine whether their demands for public water are affected by changes in water rates. Industries covered were: Fluid milk processing, Poultry dressing, Malt brewing, Papermills, and Paperboard mills. Plants in each industry were surveyed on water demand and use practices and 90 survey responses were received. Cross-sectional regression analysis of the survey data for each industry was undertaken to develop price elasticity estimates for water intake demand. Cost estimates for the typical water reuse measures in each industry were made and found to be well within the reported range of public utility water rates. The general conclusion is that industries dependent on public water utilities and having conservation and reuse alternatives will respond to water rate increase by reducing demand. |