IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Water pollution abatement by Chinese industry : cost estimates and policy implications

  • Dasgupta, Susmita
  • Huq, Minul
  • Wheeler, David
  • Chonghua Zhang

Using factory-level data provided by China's National Environmental Protection Agency and the Tianjin Environmental Protection Bureau, the authors of this report estimate the costs of water pollution abatement for Chinese industry. Using their econometric results, they analyze the cost-effectiveness of current pollution control policy in China and make the conclusions that follow. (1) For each pollutant, marginal abatement costs exhibit great differences by sector, scale, and degree of abatement. (2) The benefits of stricter discharge standards should be weighed carefully against the costs. (3) Emissions charges as low as $1 per ton would be sufficient to induce 80 percent abatement of suspended solids, chemical oxygen demand, and biological oxygen demand, respectively. (4) The current regulatory system provides an economic incentive to abate by charging a levy on pollution that exceeds the standard. The results of this analysis suggest, however, that changing to a full emissions charge system would greatly reduce overall abatement costs. The approach the authors recommend for measuring the costs of abatement is to use joint abatement cost functions that relate total costs to treatment volume and the simultaneous effect of reductions in suspended solids, chemical oxygen demand, biological oxygen demand, and other pollutants. Tests of alternative functional forms suggest that a simple (constant elasticity) model fits the data as well as a complex (translog) model does, permitting sophisticated policy experiments with relatively simple calculations.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1996/08/01/000009265_3961214131504/Rendered/PDF/multi_page.pdf
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1630.

as
in new window

Length:
Date of creation: 31 Aug 1996
Date of revision:
Handle: RePEc:wbk:wbrwps:1630
Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Web page: http://www.worldbank.org/Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1630. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.