Assessing water consumption in Yazd province industries

Water is an essential goods for household and also an important input or intermediate product for firms. The value of water in production can be attributed to its ability to create goods and services. Yazd province is one of the industrial provinces as well as one of the low water provinces of the country. Therefore, the present study investigates water consumption in Yazd province industries during the period 1995-2015. While the value added of industry has grown on average about 9 percent annually, water consumption is increased approximately 29 percent that reflecting inadequate water consumption and management. Production function estimated using panel data regression. The findings show that the value of marginal product of water in Yazd province industries is much higher than the price paid. First the industry sector receives a rent from the low price of water, and second, the problem of water-intensive industry development and the improper management of water resources can be explained.