Economic Value of Industrial Water in Korea

초록

Industrial water supplied by water resource project is essential input materials along with labour, capital and land for companies. It is very important to stably secure these input materials in order for the industry to generate value added. If the supply of industrial water is stopped, it is known damage for the industry is greater than domestic water or agriculture water based on same amount of supply. Like this, the actual value of industrial water has been highly acknowledged from the intuitive perspective, but study on the value of industrial water has been rarely conducted in Korea. Therefore, this study verified the value of industrial water and used marginal productivity value as a measure to estimate. As a result of empirical analysis using Cobb-Douglas production function and Translog production function,industries' average marginal productivity value was 5,427KRW/m3 and 5,538KRW/m3 respectively.