JOURNAL ARTICLE

The Representative Kanpur Tannery's Ganges Water Pollution Problem.

  • Published In: Indian Economic Journal, 2025, v. 73, n. 3. P. 582 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Batabyal, Amitrajeet A. 3 of 3

Abstract

This research note examines the deadweight loss (DWL) caused by water pollution from a representative leather-producing tannery in Kanpur, India, and explores how an effluent fee can be used to achieve socially optimal leather production. Using a linear economic model, the study quantifies the negative externality of chemical waste discharged into the Ganges River and derives closed-form expressions for market equilibrium, social optimum, and the associated DWL. The analysis shows that imposing an effluent fee equal to the marginal external cost internalizes the pollution externality, guiding policy to reduce environmental harm while optimizing production. The note also suggests potential extensions to incorporate uncertainty, natural river cleansing capacity, and interactions among multiple polluters.

Additional Information

  • Source:Indian Economic Journal. 2025/05, Vol. 73, Issue 3, p582
  • Document Type:Article
  • Subject Area:Environmental Sciences
  • Publication Date:2025
  • ISSN:0019-4662
  • DOI:10.1177/00194662241265476
  • Accession Number:185066858
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