Demand Growth (demand + growth)

Distribution by Scientific Domains


Selected Abstracts


TRIGGER-POINT MECHANISM AND CONDITIONAL COMMITMENT: IMPLICATIONS FOR ENTRY, COLLUSION, AND WELFARE

CONTEMPORARY ECONOMIC POLICY, Issue 2 2007
LARRY D. QIU
When fixed, sunk investment costs are high, firms may not have sufficient incentive to enter the market unless future entry is constrained. In this case, the government faces a dilemma between a full commitment and noncommitment of restricted future entry. A way out is to consider a commitment conditional on the realization of the uncertain parameters, such as the trigger-point mechanism (TPM) that sets conditions on current production level, excess capacity, and demand growth under which future entry will be allowed. This article shows that the TPM facilitates the incumbents' collusion but may improve social welfare under certain circumstances. (JEL L13, L43, L50, H10, H54) [source]


Urban and industrial water use in the Krishna Basin, India,

IRRIGATION AND DRAINAGE, Issue 4 2009
Daniel J. Van Rooijen
Bassin Krishna; utilisation urbaine de l'eau; utilisation industrielle de l'eau; modélisation Abstract Regional urbanization and industrial development require water that may put additional pressure on available water resources and threaten water quality in developing countries. In this study we use a combination of census statistics, case studies, and a simple model of demand growth to assess current and future urban and industrial water demand in the Krishna Basin in southern India. Water use in this "closed" basin is dominated by irrigation (61.9 billion cubic metres (BCM) yr,1) compared to a modest domestic and industrial water use (1.6 and 3.2 BCM yr,1). Total water diversion for non-irrigation purposes is estimated at 7,8% of available surface water in the basin in an average year. Thermal power plants use the majority of water used by industries (86% or 2.7 BCM yr,1), though only 6.8% of this is consumed via evaporation. Simple modelling of urban and industrial growth suggests that non-agricultural water demand will range from 10 to 20 BCM by 2030. This is 14,28% of basin water available surface water for an average year and 17,34% for a year with 75% dependable flow. Although water use in the Krishna Basin will continue to be dominated by agriculture, water stress, and the fraction of water supplies at risk of becoming polluted by urban and industrial activity, will become more severe in urbanized regions in dry years. Copyright © 2008 John Wiley & Sons, Ltd. L'urbanisation régionale et le développement industriel demandent de l'eau, ce qui peut augmenter la pression sur les ressources en eau disponibles dans les pays en développement. Dans cette étude nous utilisons une combinaison de données de recensement, des études de cas et un modèle simple de croissance de la demande pour évaluer la demande en eau urbaine et industrielle actuelle et future dans le bassin Krishna en Inde du sud. Les usages de l'eau dans ce bassin « fermé » sont dominés par l'irrigation (61.9 milliards de m3/an) alors que les usages domestiques et industriels sont modestes (1.6 et 3.2 milliards de m3/an). L'eau utilisée en dehors de l'irrigation est estimée à 7 ,8% de l'eau de surface disponible dans le bassin en année moyenne. Les centrales thermiques utilisent la plus grosse partie de l'eau allouée aux industries (86% ou 2.7 milliards de m3/an) bien que seulement 6.8% de cette quantité soit consommé par évaporation. Une modélisation simple de la croissance urbaine et industrielle suggère que la demande non-agricole d'eau variera de 10 à 20 milliards de m3/an d'ici à 2030. C'est 14,28% de l'eau de surface disponible du bassin en année moyenne et 17,34% de l'écoulement garanti à 75%. Bien que l'utilisation de l'eau dans le bassin Krishna continue à être dominée par l'agriculture, la tension sur l'eau peut devenir plus sévère en année sèche dans les régions urbanisées avec en outre le risque d'une pollution par l'activité urbaine et industrielle. Copyright © 2008 John Wiley & Sons, Ltd. [source]


Water, Adaptation, and Property Rights on the Snake and Klamath Rivers,

JOURNAL OF THE AMERICAN WATER RESOURCES ASSOCIATION, Issue 2 2007
Richard A. Slaughter
Abstract:, Water demand in a viable economy tends to be dynamic: it changes over time in response to growth, drought, and social policy. Institutional capacity to re-allocate water between users and uses under stress from multiple sources is a key concern. Climate change threatens to add to those stresses in snowmelt systems by changing the timing of runoff and possibly increasing the severity and duration of drought. This article examines Snake and Klamath River institutions for their ability to resolve conflict induced by demand growth, drought, and environmental constraints on water use. The study finds that private ownership of water rights has been a major positive factor in successful adaptation, by providing the basis for water marketing and by promoting the use of negotiation and markets rather than politics to resolve water conflict. [source]


Product line extensions: causes and effects

MANAGERIAL AND DECISION ECONOMICS, Issue 1 2008
Article first published online: 27 JUL 200, Kostas Axarloglou
In this paper, and using data from a sample of five US manufacturing industries, we study the implications of market demand growth on product line extensions and the effects of the latter on industry profit margins. Companies extend their product lines in response to expansions in market demand and this tends to depress profit margins in the industry. Finally, these results are quantitatively significant. Copyright © 2007 John Wiley & Sons, Ltd. [source]


Capacity expansion under a service-level constraint for uncertain demand with lead times

NAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 3 2009
Rahul R. Marathe
Abstract For a service provider facing stochastic demand growth, expansion lead times and economies of scale complicate the expansion timing and sizing decisions. We formulate a model to minimize the infinite horizon expected discounted expansion cost under a service-level constraint. The service level is defined as the proportion of demand over an expansion cycle that is satisfied by available capacity. For demand that follows a geometric Brownian motion process, we impose a stationary policy under which expansions are triggered by a fixed ratio of demand to the capacity position, i.e., the capacity that will be available when any current expansion project is completed, and each expansion increases capacity by the same proportion. The risk of capacity shortage during a cycle is estimated analytically using the value of an up-and-out partial barrier call option. A cutting plane procedure identifies the optimal values of the two expansion policy parameters simultaneously. Numerical instances illustrate that if demand grows slowly with low volatility and the expansion lead times are short, then it is optimal to delay the start of expansion beyond when demand exceeds the capacity position. Delays in initiating expansions are coupled with larger expansion sizes. © 2009 Wiley Periodicals, Inc. Naval Research Logistics, 2009 [source]


Accounting for Growth in the Australian Wine Industry, 1987 to 2003

THE AUSTRALIAN ECONOMIC REVIEW, Issue 2 2001
Glyn Wittwer
A computable general equilibrium model of the Australian economy is used to account for the dramatic growth in Australia's wine industry between 1987 and 1999, and to project grape and wine volumes and prices to 2003. Export demand growth has made a major contribution to total output growth in premium wines, and accounts for most of the increase in the producer price of premium red wine. Domestic consumer preferences have shifted, mainly towards premium red wine, but there is also some evidence of growing demand for premium white wine since the mid 1990s. From the perspective of producers, productivity growth, while being less important than growth in domestic demand, appears to have more than offset the negative effects on suppliers of wine consumer tax increases. From the domestic consumers' perspective, however, tax hikes have raised retail prices much more than productivity gains have lowered them. The high and sustained levels of profitability resulting from export demand growth have led to a massive supply response in Australia. Even so, by 2003 Australian wine output will still be less than 5 per cent of global production. [source]