Estimation the Marginal Cost of Production of Drinking Water in Tehran
The main objective of this paper is to determine the cost structure of the companies in charge of water production and distribution and to estimate the marginal cost of production of drinking water in Tehran. For this purpose, the Translog cost function is used to estimate the cost of production, tr...
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| Format: | Article |
| Language: | fas |
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Iran Water and Wastewater Association
2018-07-01
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| Series: | علوم و مهندسی آب و فاضلاب |
| Subjects: | |
| Online Access: | http://www.jwwse.ir/article_82088_272c884a2113853267669990d73bfb3e.pdf?lang=en |
| _version_ | 1797998897898979328 |
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| author | Fateme Molaei Morteza Tahamipour |
| author_facet | Fateme Molaei Morteza Tahamipour |
| author_sort | Fateme Molaei |
| collection | DOAJ |
| description | The main objective of this paper is to determine the cost structure of the companies in charge of water production and distribution and to estimate the marginal cost of production of drinking water in Tehran. For this purpose, the Translog cost function is used to estimate the cost of production, transmission and distribution of water in Tehran Water and Wastewater Company. Analysis framework is based on a seemingly unrelated regression system. Time series data for the period of 1997-2012 has been used in this study. The results indicated that the labor, raw materials and other services inputs are substitute sand labor and capital inputs are complements. Results also showed that product cost elasticity is greater than unit and a diminishing returns to scale exists in Tehran Water and Wastewater Company. Finally, by using the calculated parameters and objective of minimizing the total cost of production, transmission and distribution of drinking water, the optimal production capacity in drinking water is calculated for Tehran. The results showed that, the optimal production capacity in Tehran drinking water is 376.15 MCM per year. |
| first_indexed | 2024-04-11T10:56:02Z |
| format | Article |
| id | doaj.art-12e65604b65142b09a66a60244752f29 |
| institution | Directory Open Access Journal |
| issn | 2588-395X |
| language | fas |
| last_indexed | 2024-04-11T10:56:02Z |
| publishDate | 2018-07-01 |
| publisher | Iran Water and Wastewater Association |
| record_format | Article |
| series | علوم و مهندسی آب و فاضلاب |
| spelling | doaj.art-12e65604b65142b09a66a60244752f292022-12-22T04:28:46ZfasIran Water and Wastewater Associationعلوم و مهندسی آب و فاضلاب2588-395X2018-07-0132142210.22112/JWWSE.2018.127185.1079Estimation the Marginal Cost of Production of Drinking Water in TehranFateme Molaei0Morteza Tahamipour 1M.A. Economic Systems Planning, Shahid Beheshti University, Tehran, Iran.Assistant professor, faculty of economics and political science, Shahid Beheshti University, Tehran, Iran.The main objective of this paper is to determine the cost structure of the companies in charge of water production and distribution and to estimate the marginal cost of production of drinking water in Tehran. For this purpose, the Translog cost function is used to estimate the cost of production, transmission and distribution of water in Tehran Water and Wastewater Company. Analysis framework is based on a seemingly unrelated regression system. Time series data for the period of 1997-2012 has been used in this study. The results indicated that the labor, raw materials and other services inputs are substitute sand labor and capital inputs are complements. Results also showed that product cost elasticity is greater than unit and a diminishing returns to scale exists in Tehran Water and Wastewater Company. Finally, by using the calculated parameters and objective of minimizing the total cost of production, transmission and distribution of drinking water, the optimal production capacity in drinking water is calculated for Tehran. The results showed that, the optimal production capacity in Tehran drinking water is 376.15 MCM per year.http://www.jwwse.ir/article_82088_272c884a2113853267669990d73bfb3e.pdf?lang=endrinking wateroptimal production capacityreturn to scalestretching the production cost of the producttime series datatranslog cost function |
| spellingShingle | Fateme Molaei Morteza Tahamipour Estimation the Marginal Cost of Production of Drinking Water in Tehran علوم و مهندسی آب و فاضلاب drinking water optimal production capacity return to scale stretching the production cost of the product time series data translog cost function |
| title | Estimation the Marginal Cost of Production of Drinking Water in Tehran |
| title_full | Estimation the Marginal Cost of Production of Drinking Water in Tehran |
| title_fullStr | Estimation the Marginal Cost of Production of Drinking Water in Tehran |
| title_full_unstemmed | Estimation the Marginal Cost of Production of Drinking Water in Tehran |
| title_short | Estimation the Marginal Cost of Production of Drinking Water in Tehran |
| title_sort | estimation the marginal cost of production of drinking water in tehran |
| topic | drinking water optimal production capacity return to scale stretching the production cost of the product time series data translog cost function |
| url | http://www.jwwse.ir/article_82088_272c884a2113853267669990d73bfb3e.pdf?lang=en |
| work_keys_str_mv | AT fatememolaei estimationthemarginalcostofproductionofdrinkingwaterintehran AT mortezatahamipour estimationthemarginalcostofproductionofdrinkingwaterintehran |