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Tanneries in Kanpur and pollution in the Ganges: a theoretical analysis

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  • Batabyal, Amitrajeet

Abstract

We study pollution in the Ganges river caused by tanneries in the city of Kanpur in India. Two tanneries, A and B, are located on the same bank of the Ganges in Kanpur. Both produce leather and the production of leather requires the use of chemicals that are toxic to humans. Tannery A is located upstream from tannery B. Tannery A's leather production depends directly only on labor use but tannery B's leather production depends on labor use, the chemical waste generated by tannery A, and the natural pollution absorbing capacity of the Ganges. In this setting, we accomplish three tasks. First, we determine the equilibrium production of leather by both tanneries in the benchmark case in which there is no pollution. Second, we ascertain how the benchmark equilibrium is altered when tannery B accounts for the negative externality imposed on it by tannery A. Finally, we analyze what happens to leather production and to labor use when the two tanneries merge and then we discuss some policy implications emanating from our research.

Suggested Citation

  • Batabyal, Amitrajeet, 2022. "Tanneries in Kanpur and pollution in the Ganges: a theoretical analysis," MPRA Paper 115032, University Library of Munich, Germany, revised 06 Sep 2022.
    • Handle: RePEc:pra:mprapa:115032
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    References listed on IDEAS

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    1. Singh, Aparajita & Gundimeda, Haripriya, 2020. "Why Regulations Come Up Short? Some Observations from a Field Study of the Kanpur Leather Industry," Ecology, Economy and Society - the INSEE Journal, Indian Society of Ecological Economics (INSEE), vol. 3(02), July.
    2. 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.
    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. Markandya, A. & Murty, M.N., 2004. "Cost–benefit analysis of cleaning the Ganges: some emerging environment and development issues," Environment and Development Economics, Cambridge University Press, vol. 9(1), pages 61-81, February.
    6. 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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    Cited by:

    1. Batabyal, Amitrajeet, 2023. "How spillovers from pollution cleanup in the Ganges affect welfare in Kanpur and Varanasi," MPRA Paper 118366, University Library of Munich, Germany, revised 23 Aug 2023.
    2. Amitrajeet A. Batabyal & Hamid Beladi, 2023. "Centralized versus Decentralized Cleanup of River Water Pollution: An Application to the Ganges," Games, MDPI, vol. 14(5), pages 1-12, October.
    3. 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.
    4. 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.

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    More about this item

    Keywords

    Ganges river; leather; merger; pollution; tannery;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • 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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