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

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  • Bishwanath Goldar

    (University Enclave)

  • Rita Pandey

    (National Institute of Public Finance and Policy)

Abstract

This paper analyses the issue of appropriate pricing of water for effectively controlling water pollution by distilleries in India. A major focus of the study is the practice of diluting effluent streams by clean groundwater to meet environmental regulations. The analysis is undertaken using a nonlinear programming model. The results indicate that under the command and control system of environmental regulation, or if it is replaced by fiscal instruments, groundwater must be appropriately priced, reflecting its economic cost, to ensure that the distilleries undertake pollution abatement to the desired extent.

Suggested Citation

  • Bishwanath Goldar & Rita Pandey, 2001. "Water pricing and abatement of industrial water pollution: study of distilleries in India," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 4(2), pages 95-113, September.
    • Handle: RePEc:spr:envpol:v:4:y:2001:i:2:d:10.1007_bf03353918
    DOI: 10.1007/BF03353918
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    References listed on IDEAS

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    1. Pandey, Rita, 1997. "Designing of pigouvian tax for pollution abatement in sugar industry," Working Papers 97/4, National Institute of Public Finance and Policy.
    2. Susmita Dasgupta & Mainul Huq & David Wheeler & Chonghua Zhang, 2001. "Water pollution abatement by Chinese industry: cost estimates and policy implications," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 547-557.
    3. Daniel Rossi & C. Edwin Young & Donald J. Epp, 1979. "The Cost Impact of Joint Treatment of Domestic and Poultry Processing Wastewaters," Land Economics, University of Wisconsin Press, vol. 55(4), pages 444-459.
    4. William J. Baumol & Wallace E. Oates, 1971. "The Use of Standards and Prices for Protection of the Environment," Palgrave Macmillan Books, in: Peter Bohm & Allen V. Kneese (ed.), The Economics of Environment, pages 53-65, Palgrave Macmillan.
    5. Goldar, Bishwanath & Misra, Smita & Mukherji, Badal, 2001. "Water pollution abatement cost function: methodological issues and an application to small-scale factories in an industrial estate in India," Environment and Development Economics, Cambridge University Press, vol. 6(1), pages 103-122, February.
    6. Fraas, Arthur G. & Munley, Vincent G., 1984. "Municipal wastewater treatment cost," Journal of Environmental Economics and Management, Elsevier, vol. 11(1), pages 28-38, March.
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