IDEAS home Printed from https://ideas.repec.org/p/snd/wpaper/5.html
   My bibliography  Save this paper

Taxing the Pollution: A Case for Reducing the Environmental Impacts of Rubber Production in Sri Lanka

Author

Listed:
  • Jagath Edirisinghe
  • Susantha Siriwardana
  • Sarath Siriwardana
  • Punsara Pras
  • ith

Abstract

Most firms that process rubber in Sri Lanka do not comply with national water pollution control standards. This study seeks to estimate a pollution tax that could motivate firms to meet these standards. The authors use data from 62 rubber producing firms in Sri Lanka over three years to estimate a marginal cost function for pollution abatement. They 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 of Chemical Oxygen Demand (COD) per year. While the burden of a pollution tax on the average firm would be 8.6% of annual turnover, the tax burden varies with the size of the firm. The authors suggest that the use of such an economic instrument might motivate the Central Environmental Authority to monitor effluents more carefully and firms to make use of effluents.

Suggested Citation

  • Jagath Edirisinghe & Susantha Siriwardana & Sarath Siriwardana & Punsara Pras & ith, "undated". "Taxing the Pollution: A Case for Reducing the Environmental Impacts of Rubber Production in Sri Lanka," Working papers 5, The South Asian Network for Development and Environmental Economics.
  • Handle: RePEc:snd:wpaper:5
    as

    Download full text from publisher

    File URL: http://www.sandeeonline.org/uploads/documents/publication/746_PUB_working_paper30.pdf
    Download Restriction: no

    File URL: http://www.sandeeonline.org/uploads/documents/abstract/746_ABS_abstract30.pdfFile-FormatABS:application/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Seo, Sung-No Niggol & Mendelsohn, Robert & Munasinghe, Mohan, 2005. "Climate change and agriculture in Sri Lanka: a Ricardian valuation," Environment and Development Economics, Cambridge University Press, vol. 10(5), pages 581-596, October.
    2. World Bank, 2008. "Climate Change Impacts in Drought and Flood Affected Areas : Case Studies in India," World Bank Publications - Reports 8075, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wassie Berhanu & Fekadu Beyene, 2015. "Climate Variability and Household Adaptation Strategies in Southern Ethiopia," Sustainability, MDPI, vol. 7(6), pages 1-23, May.
    2. Severen, Christopher & Costello, Christopher & Deschênes, Olivier, 2018. "A Forward-Looking Ricardian Approach: Do land markets capitalize climate change forecasts?," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 235-254.
    3. Wasantha Athukorala & Clevo Wilson, 2012. "Groundwater overuse and farm-level technical inefficiency: evidence from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 279, School of Economics and Finance, Queensland University of Technology.
    4. Eriyagama, Nishadi & Smakhtin, Vladimir, 2010. "Observed and projected climatic changes, their impacts and adaptation options for Sri Lanka: a review," IWMI Conference Proceedings 211313, International Water Management Institute.
    5. Mendelsohn, Robert & Seo, Niggol, 2007. "Changing farm types and irrigation as an adaptation to climate change in Latin American agriculture," Policy Research Working Paper Series 4161, The World Bank.
    6. Jane Kabubo‐Mariara, 2008. "Climate change adaptation and livestock activity choices in Kenya: An economic analysis," Natural Resources Forum, Blackwell Publishing, vol. 32(2), pages 131-141, May.
    7. Ward, Patrick S. & Ortega, David L. & Spielman, David J. & Singh, Vartika, 2013. "Farmer preferences for drought tolerance in hybrid versus inbred rice: Evidence from Bihar, India:," IFPRI discussion papers 1307, International Food Policy Research Institute (IFPRI).
    8. K.S. Kavi Kumar & Kamal Karunagoda & Enamul Haque & L. Venkatachelam & Girish Nath Bahal, 2012. "Addressing Long-term Challenges to Food Security and Rural Livelihoods in South Asia," Working Papers 2012-075, Madras School of Economics,Chennai,India.
    9. K.S. Kavi Kumar, 2009. "Climate Sensitivity of Indian Agriculture," Working Papers 2009-043, Madras School of Economics,Chennai,India.
    10. S. Niggol Seo, 2011. "The impacts of climate change on Australia and New Zealand: a Gross Cell Product analysis by land cover," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(2), pages 220-238, April.
    11. R. P. Dayani Gunathilaka & James C. R. Smart & Christopher M. Fleming, 2017. "The impact of changing climate on perennial crops: the case of tea production in Sri Lanka," Climatic Change, Springer, vol. 140(3), pages 577-592, February.
    12. Wassie Berhanu & Fekadu Beyene, 2014. "The Impact of Climate Change on Pastoral Production Systems: A Study of Climate Variability and Household Adaptation Strategies in Southern Ethiopian Rangelands," WIDER Working Paper Series wp-2014-028, World Institute for Development Economic Research (UNU-WIDER).
    13. Hossain, Mohammad Shakhawat & Arshad, Muhammad & Qian, Lu & Zhao, Minjuan & Mehmood, Yasir & Kächele, Harald, 2019. "Economic impact of climate change on crop farming in Bangladesh: An application of Ricardian method," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    14. Arellano Gonzalez, Jesus, 2018. "Estimating climate change damages in data scarce and non-competitive settings: a novel version of the Ricardian approach with an application to Mexico," 2018 Annual Meeting, August 5-7, Washington, D.C. 274010, Agricultural and Applied Economics Association.
    15. Seo, S. Niggol, 2010. "Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture," Food Policy, Elsevier, vol. 35(1), pages 32-40, February.
    16. P.B. Eregha & J.S. Babatolu & R.T. Akinnubi, 2014. "Climate Change and Crop Production in Nigeria: An Error Correction Modelling Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 297-311.
    17. Dissanayake, Sumali & Mahadevan, Renuka & Asafu-Adjaye, John, 2019. "Is there a role for trade liberalization in mitigating the impacts of climate change on agriculture?," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 307-324.
    18. Ajay Kumar, 2014. "Climate Change and Sugarcane Productivity in India: An Econometric Analysis," Journal of Social and Development Sciences, AMH International, vol. 5(2), pages 111-122.
    19. Rajapaksha P. D. Gunathilaka & James C. R. Smart & Christopher M. Fleming & Syezlin Hasan, 2018. "The impact of climate change on labour demand in the plantation sector: the case of tea production in Sri Lanka," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), pages 480-500, July.
    20. Mora-Rivera, José Jorge, 2013. "efectos del cambio climático sobre la renta de la tierra de guatemala: un enfoque ricardiano," eseconomía, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(38), pages 7-38, segundo t.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:snd:wpaper:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anuradhak (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.