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Estimation of Marginal Abatement Cost of Air Pollution in Durgapur City of West Bengal

Author

Listed:
  • Kakali Mukhopadhyay

    (Madras School of Economics)

  • Souvik Bhattacharya

    (Tata Energy Research Institute, New Delhi)

Abstract

Air pollution in industrial cities with emissions from firms is a growing problem in India. Durgapur, one of the growing industrial cities in eastern India, covering a host of industries, suffers from similar problems. The paper estimates the marginal abatement cost of air pollution of industries in Durgapur, West Bengal. We model the technology of a firm with output-distance function. Here the linear programming approach is adopted to estimate the shadow prices and distance values. Results reveal that there is a wide variation in shadow prices of Suspended Particulate Matter and distance values between firms under particular category of industries thus indicating the variability in the degree of compliance, use of resources and the vintages of capital. In this context the paper suggests policies for air quality management in urban industrial areas of West Bengal which will help to achieve sustainable industrial development.

Suggested Citation

  • Kakali Mukhopadhyay & Souvik Bhattacharya, 2006. "Estimation of Marginal Abatement Cost of Air Pollution in Durgapur City of West Bengal," Working Papers 2006-013, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2006-013
    as

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    References listed on IDEAS

    as
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    2. Murty, M.N. & Kumar, Surender, 2002. "Measuring the cost of environmentally sustainable industrial development in India: a distance function approach," Environment and Development Economics, Cambridge University Press, vol. 7(3), pages 467-486, July.
    3. Kumar, Surender & Gupta, Sreekant, 2004. "Resource use efficiency of US electricity generating plants during the SO2 trading regime: A distance function approach," Working Papers 04/17, National Institute of Public Finance and Policy.
    4. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-891, December.
    5. Brümmer, Bernhard & Glauben, Thomas & Thijssen, Geert, 1999. "Analysis of productivity growth within a distance function approach: An application to European dairy farms," FE Working Papers 9903, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
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