Abstract

GUZMAN-SORIA, Eugenio et al. Econometric model for industrial and urban groundwater consumption in Guanajuato, Mexico: 1980-2011. Tecnol. cienc. agua [online]. 2013, vol.4, n.3, pp.187-193. ISSN 2007-2422.

This work estimated a model for simultaneous equations composed of two demand equations and two identities, using statistical information from 1980 to 2011, in order to determine the factors affecting groundwater consumption in the industrial and urban sectors of the state of Guanajuato. The results show that the amount of water consumed is inelastic to price changes, with elasticities of -0.086 for industrial sector and -0.012 for the urban sector. This implies that the latter is more insensitive to changes in the price of water. The first elasticity should be considered in economic policies designed to promote the efficient use of water as well as technological change.

Keywords : simultaneous equations; groundwater; consumption; industrial and urban consumption.

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