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Cutting the Costs of Cleanup: The Case for Tradable Discharge Permits in the Upper Nanpan River, China

Author

Listed:
  • Wendong Tao

    (Yunnan Institute of Environmental Sciences)

  • Weimin Yang

    (Yunnan Institute of Environmental Sciences)

  • Bo Zhou

    (Yunnan Environmental Protection Bureau)

Abstract

Water pollution is one of China's most pressing environmental issues, but a recent economic study in Yunnan province has found that in certain cases market forces can be harnessed to effectively drive river clean-up. The study looked at the feasibility of allowing industries along the heavily-polluted upper Nanpan River, Yunnan to trade permits for discharging waste into the watercourse. It found that such a tradable discharge permit (TDP) approach would be an efficient way of controlling pollution in the river and would also substantially reduce costs by providing flexibility to polluters. The study was done in light of the failure of the current non-tradable permits system and against the background of the Yunnan provincial government's resolve to carry out comprehensive water pollution control.

Suggested Citation

  • Wendong Tao & Weimin Yang & Bo Zhou, 1998. "Cutting the Costs of Cleanup: The Case for Tradable Discharge Permits in the Upper Nanpan River, China," EEPSEA Policy Brief pb1998062, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jun 1998.
    • Handle: RePEc:eep:pbrief:pb1998062
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    File URL: http://www.eepsea.org/pub/pb/117858.pdf
    File Function: First version, 1998
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    Keywords

    Water pollution; China;

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