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Environmental Costs of Industrialisation: A Study of Durgapur Region in West Bengal


  • Majumder, Rajarshi


Industrialization is perceived as inseparable part of economic development and developing economies adopt policies for transformation of agro-based underdevelopment regions to industry-based developed regions. However, public awareness about environmental problems emanating from industrialisation has swelled significantly and researchers have been trying to evaluate the consequence of pollution through field studies and quantitative analysis. It is now accepted that the benefit from industrialisation in a region needs to be examined against the perceived costs of increasing pollution and has to be carefully studied before allowing any further industries to come up in that area. This paper attempts to evaluate monetary costs of environmental damages in the rapidly industrialising locality of Durgapur Municipal Corporation in West Bengal. Using WTP and WTA methods, it is inferred from the study that the residents are quite aware of the problems caused by pollution from the present phase of industrialisation in the locality and are willing to pay to protect / clean the environment. The estimated valuation of environment in the area comes out to be around Rs94 million, if the residents seek to protect current environmental standards. If however, the residents want to go back to the situation prevalent before the neo-industrialisation process was set in, then the cost comes out to be a whooping Rs272 million. This is a pointer to the fact that we must look at such costs before embarking on further industrialisation process in the region to protect ecological/environmental balance and keep the system sustainable.

Suggested Citation

  • Majumder, Rajarshi, 2009. "Environmental Costs of Industrialisation: A Study of Durgapur Region in West Bengal," MPRA Paper 35054, University Library of Munich, Germany, revised Jan 2010.
  • Handle: RePEc:pra:mprapa:35054

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    References listed on IDEAS

    1. Usha Gupta, 2008. "Valuation of Urban Air Pollution: A Case Study of Kanpur City in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(3), pages 315-326, November.
    2. J. M. Bowker & H. F. MacDonald, 1993. "An Economic Analysis of Localized Pollution: Rendering Emissions in a Residential Setting," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(1), pages 45-59, March.
    3. Isabel Vanslembrouck & Guido Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri-environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511.
    4. Sengupta, Ramprasad & Mandal, Subrata, 2005. "Health damage cost of automotive air pollution: Cost benefit analysis of fuel quality upgradation for Indian cities," Working Papers 05/37, National Institute of Public Finance and Policy.
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    More about this item


    Environmental Damage; Industrialisation; Pollution; CVM; Durgapur; India;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology


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