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Polluting tanneries and small farmers in Kanpur, India: a theoretical analysis

Author

Listed:
  • Batabyal, Amitrajeet
  • Kourtit, Karima
  • Nijkamp, Peter

Abstract

We focus on the interaction between a representative polluting tannery and a negatively impacted small farmer in Kanpur, India. The tannery produces leather and toxic chemical waste that ends up in wastewater used by the small farmer to irrigate agricultural land and grow vegetables. The waste generated by the tannery is functionally related to its output of leather. The small farmer faces a capacity constraint that describes the maximum amount of vegetables he can grow. In this setting, we perform three tasks. First, we determine the optimal production of leather when the tannery does not account for the negative effect it has on the small farmer. Second, on the assumption that the tannery compensates the small farmer per unit of waste it generates, we ascertain the optimal compensation amount, the optimal output of leather, and the profit levels of the tannery and the small farmer. Finally, we compare the solutions in the preceding two cases and explain what accounts for the differences between them.

Suggested Citation

  • Batabyal, Amitrajeet & Kourtit, Karima & Nijkamp, Peter, 2022. "Polluting tanneries and small farmers in Kanpur, India: a theoretical analysis," MPRA Paper 115216, University Library of Munich, Germany, revised 31 Aug 2022.
    • Handle: RePEc:pra:mprapa:115216
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    File URL: https://mpra.ub.uni-muenchen.de/115216/1/MPRA_paper_115216.pdf
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    References listed on IDEAS

    as
    1. Amitrajeet A. Batabyal & Hamid Beladi, 2017. "Cleaning the Ganges in Varanasi to Attract Tourists," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(4), pages 511-513, December.
    2. Amitrajeet A. Batabyal, 2023. "Tanneries in Kanpur and pollution in the Ganges: A theoretical analysis," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(5), pages 1114-1123, June.
    3. Xing, Shiqi & Batabyal, Amitrajeet, 2019. "A Safe Minimum Standard, an Elasticity of Substitution, and the Cleanup of the Ganges in Varanasi," MPRA Paper 93846, University Library of Munich, Germany, revised 15 Mar 2019.
    4. Aparajita Singh & Haripriya Gundimeda, 2021. "Measuring technical efficiency and shadow price of water pollutants for the leather industry in India: a directional distance function approach," Journal of Regulatory Economics, Springer, vol. 59(1), pages 71-93, February.
    5. Beladi, Hamid & Liu, Lu & Oladi, Reza, 2013. "On pollution permits and abatement," Economics Letters, Elsevier, vol. 119(3), pages 302-305.
    6. Amitrajeet A. BATABYAL & Seung Jick YOO, 2022. "A Theoretical Analysis Of Costs, Waste Treatment, Pollution In The Ganges, And Leather Production By Tanneries In Kanpur, India," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 47-53, June.
    7. Batabyal, Amitrajeet & Beladi, Hamid, 2020. "A Political Economy Model of the Ganges Pollution Cleanup Problem," MPRA Paper 102790, University Library of Munich, Germany, revised 28 May 2020.
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    1. Amitrajeet A. BATABYAL & Seung Jick YOO, 2022. "A Theoretical Analysis Of Costs, Waste Treatment, Pollution In The Ganges, And Leather Production By Tanneries In Kanpur, India," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 47-53, June.

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    More about this item

    Keywords

    chemical waste; irrigation; leather; small farmer; tannery;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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