Water pricing and abatement of industrial water pollution: study of distilleries in India

Goldar, Bishwanath; Pandey, Rita

doi:10.1007/bf03353918

Cited by 17 publications

(13 citation statements)

References 6 publications

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“…The MAC function is generally estimated in two ways. The first approach is to econometrically estimate the total abatement cost function using plant-level data and then, estimate the MAC (Goldar & Pandey, 2001;Murty et al, 2006). Others have estimated shadow prices for pollutants via an output distance function, which is used to develop a pollutant-specific MAC (Marklund, 2003;Murty & Kumar, 2002;Murty et al, 2006).…”

Section: Taxing Pollutionmentioning

confidence: 99%

Taxing the Pollution

Edirisinghe¹

2014

Journal of South Asian Development

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Most firms that process rubber in Sri Lanka do not comply with national water pollution control standards. The present command and control system fails in the face of a slow enforcement process, and also because of the nature of 'older' production units, many of which date back to colonial times. This study seeks to estimate a pollution tax that could motivate firms to meet these standards. I use data from 62 rubber-producing firms in Sri Lanka over three years to estimate a marginal cost function for pollution abatement. I then estimate the taxes that would bring firms into compliance. The tax rate necessary for environmental compliance is 26 Sri Lankan rupees per 100 grams (in 2005 values) of Chemical Oxygen Demand (COD) per year. While the burden of this pollution tax on the average firm would be equivalent to 8.6 per cent of annual turnover, it varies with the size of the firm, which may have adverse consequences for small firms through closures or layoff of workers. I suggest that the use of this economic instrument might motivate the Central Environmental Authority (CEA) to monitor effluents more carefully and firms to make economic use of effluents.

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Section: Taxing Pollutionmentioning

confidence: 99%

Taxing the Pollution

Edirisinghe¹

2014

Journal of South Asian Development

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“…Some researchers (see James and Murty, 1996), have used equation (1), while some others like Roy and Ganguli (1997), Pandey (1998) and Goldar and Pandey (2001) employed equation (2), which is not as restrictive as equation (1), since the former permits different coefficients for q i and q e . Some researchers (see James and Murty, 1996), have used equation (1), while some others like Roy and Ganguli (1997), Pandey (1998) and Goldar and Pandey (2001) employed equation (2), which is not as restrictive as equation (1), since the former permits different coefficients for q i and q e .…”

Section: Water Pollution Abatement Cost In Previous Studiesmentioning

confidence: 99%

Effluent charge reform for controlling water pollution in the Malaysian crude palm oil industry

Hojat¹,

Rahim²

2012

Envir. Dev. Econ.

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This study analyzes the costs borne by Malaysian palm oil mills (POMs) in order to reach standard levels. A number of studies have been conducted on Malaysian palm oil mills; however, none has obtained the marginal abatement cost (MAC) through an estimated total cost function. More particularly, as far as inflation is concerned, the effluent-related fee and effluent charge specified have not been revised within the past two decades. In addition, to our knowledge, there has not been any study comparing MAC to the mills of the two different methods of disposal, namely watercourse and on land. Our results show that, to force POMs to meet the standard, the effluent charge must be set higher, equaling the MAC. While the results show the existence of economies of scale in abatement activity, setting the effluent-related fee equal to the MAC may encourage mills to further abate their water pollution.

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“…The industry represents over Rupees (Rs) 3 900,000 million of capital (Pandey, 2000). Production of finished steel in India has increased from 14.33 million tons in 1991-1992 to 29.27 million tons in 2000-2001(Government of India, 2002. Steel production in India is expected to reach 38.6 million tons in 2010.…”

Section: The Steel Sector In India and The Bokaro Steel Plantmentioning

confidence: 99%

“…The baseline emission scenario refers to a situation in MC = dAC dR Where, R = Q(SPM bt − SPM at ) or SPM load abated. Marginal cost is given by partial derivative of AC with respect to R (Goldar and Pandey, 2001). Therefore…”

Section: The Datamentioning

confidence: 99%

Comparing the cost effectiveness of market-based policy instruments versus regulation: the case of emission trading in an integrated steel plant in India

Pandey

Bhardwaj

2004

Envir. Dev. Econ.

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Cost-effective policies allow for minimizing the compliance costs associated with reaching a desired environmental quality target. In this paper a conceptual model has been developed to examine the compliance costs under an intra-plant emission trading system for a non-uniformly mixed assimilative pollutant. The model incorporates the number of emission sources, the concentration of pollutants emitted at each source, the marginal cost of abatement for each source, the transfer coefficient that relates emission at each source with the impact on ambient air quality, and the desired ambient air quality target. The model is applied to an integrated steel plant in India. Results of this study demonstrate that emission trading is more cost effective than the existing regulatory system. Further, intra-plant trades would result in significant savings to the steel plant while securing an improvement in ambient air quality in the studied geographical area.

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Water pricing and abatement of industrial water pollution: study of distilleries in India

Cited by 17 publications

References 6 publications

Taxing the Pollution

Taxing the Pollution

Effluent charge reform for controlling water pollution in the Malaysian crude palm oil industry

Comparing the cost effectiveness of market-based policy instruments versus regulation: the case of emission trading in an integrated steel plant in India

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