Non-separability and substitutability among water pollutants : evidence from India

Kumar, Surender & Managi, Shunsuke (2011) Non-separability and substitutability among water pollutants : evidence from India. Environment and Development Economics, 16(6), pp. 709-733.

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The design and implementation of environmental policy often involve more than one pollutant, and must consider pollution as a byproduct of the production of marketable output. In this paper, we test the implicit assumption in the empirical literature that (1) production of marketable output, pollution and abatement are separable, and (2) different pollutants can be abated separately. Using unique plant-level data in India, we reject the null hypotheses of separability between marketable output and pollutants, and between different pollutants. Firms must incur abatement costs for reducing pollution levels. In addition, complement and substitute relationships between water pollutants are demonstrated with statistical significance.

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ID Code: 75453
Item Type: Journal Article
Refereed: Yes
Keywords: water , pollutants, India
DOI: 10.1017/S1355770X11000283
ISSN: 1469-4395
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Deposited On: 25 Aug 2014 00:00
Last Modified: 25 Aug 2014 23:44

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