1504.0 - Methodological News, Dec qtr 2012  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 12/12/2012   
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Modelling Industry Water Consumption in Non-Survey Years

The ABS produces data on the supply and use of water by industry and households in Australia through its annual Water Accounts Australia publication (ABS Cat. no. 4610.0). Annual surveys are conducted for the Water Supply and Agriculture industries, however the key survey on water use by all other industries (Energy Water and Environment Survey - EWES) is conducted every three years only. This project developed a modelling method for estimating water use by industry, state and water source for the non-survey years.

This project used the 2008-09 EWES data which was linked to the 2008-09 Business Activity Statement Unit Record Estimates (BURE) data to derive estimates of water use for 2009-10 and 2010-11. The modelling methodology was similar to that used for the energy consumption modelling project undertaken by the ABS previously. The model used was a log-linear model which modelled water consumption at the firm level as a function of firm turnover and the industry it belongs to (i.e., industry dummy).

The choice of the explanatory variables was dictated by the availability of the variables in BURE which would be the main data source for producing estimates in the non-survey years. Additional steps as part of the estimation process involved adjustment for log transformation bias, adjustment for zero-energy reporting by firms and benchmarking of the adjusted model estimates to EWES 2008-09 estimates to align for scope differences between EWES and BURE. The final estimates for 2009-10 and 2010-11 were in line with trend growth in turnover from 2008-09.

Further Information
For more information, please contact Kay Cao (07 3222 6467, kay.cao@abs.gov.au)