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A Theoretical Analysis of Costs, Waste Treatment, Pollution in the Ganges, and Leather Production by Tanneries in Kanpur, India

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  • Batabyal, Amitrajeet
  • Yoo, Seung Jick

Abstract

We theoretically analyze the interaction between two representative and real tanneries, denoted by A and B, that are located on the same bank of the Ganges River in Kanpur, India. Tannery A is situated upstream from tannery B. Both tanneries produce leather and leather production by tannery A also gives rise to chemical waste that adversely affects the cost incurred by tannery B in producing leather. In this setting, we perform four tasks. First, we determine the amount of chemical waste and the leather produced by tanneries A and B in a competitive equilibrium. Second, we explain why this competitive equilibrium is inefficient from a societal standpoint. Third, we ascertain the socially optimal amount of leather produced by the two tanneries. Finally, we illustrate the working of our theoretical model with a specific example in which we use explicit functional forms and numbers.

Suggested Citation

  • Batabyal, Amitrajeet & Yoo, Seung Jick, 2022. "A Theoretical Analysis of Costs, Waste Treatment, Pollution in the Ganges, and Leather Production by Tanneries in Kanpur, India," MPRA Paper 114284, University Library of Munich, Germany, revised 22 Aug 2022.
    • Handle: RePEc:pra:mprapa:114284
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    References listed on IDEAS

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    1. Amitrajeet A. Batabyal & Hamid Beladi, 2017. "Cleaning the Ganges in Varanasi to Attract Tourists," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(4), pages 511-513, December.
    2. Amitrajeet A. Batabyal, 2023. "Tanneries in Kanpur and pollution in the Ganges: A theoretical analysis," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(5), pages 1114-1123, June.
    3. Georgios KARRAS, 2015. "Fiscal Activism In European Regions: Evidence On Fiscal Rules Before And After The Euro," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 21-34, June.
    4. Cristina Lincaru & Mihaela Ghenta & Draga Atanasiu & Vasilica Ciuca & Codruta Dragoiu & Beatrice Chiriac, 2010. "Regional Development And Diversity/Variety Of Firms: The Case Of Romania," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 119-132, December.
    5. Xing, Shiqi & Batabyal, Amitrajeet, 2019. "A Safe Minimum Standard, an Elasticity of Substitution, and the Cleanup of the Ganges in Varanasi," MPRA Paper 93846, University Library of Munich, Germany, revised 15 Mar 2019.
    6. Michael MITSOPOULOS & Theodore PELAGIDIS, 2021. "Labor Taxation And Investment In Developed Countries. The Impact On Employment," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 13-31, June.
    7. Aparajita Singh & Haripriya Gundimeda, 2021. "Measuring technical efficiency and shadow price of water pollutants for the leather industry in India: a directional distance function approach," Journal of Regulatory Economics, Springer, vol. 59(1), pages 71-93, February.
    8. repec:hrs:journl:v:3:y:2011:i:2:p:45-59 is not listed on IDEAS
    9. Peter Nijkamp, 2011. "The Role Of Evaluation In Supporting A Human Sustainable Development: A Cosmonomic Perspective," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 13-22, June.
    10. Batabyal, Amitrajeet & Kourtit, Karima & Nijkamp, Peter, 2022. "Polluting tanneries and small farmers in Kanpur, India: a theoretical analysis," MPRA Paper 115216, University Library of Munich, Germany, revised 31 Aug 2022.
    11. Y Nguyen CAO, 2021. "Factors Affecting On Urban Location Choice Decisions Of Enterprises," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 217-224, June.
    12. Alexiadis Stilianos & Christos Ap. LADIAS, 2011. "Optimal Allocation Of Investment And Regional Disparities," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 45-59, December.
    13. Batabyal, Amitrajeet & Beladi, Hamid, 2020. "A Political Economy Model of the Ganges Pollution Cleanup Problem," MPRA Paper 102790, University Library of Munich, Germany, revised 28 May 2020.
    14. repec:hrs:journl:v:2:y:2010:i:2:p:119-132 is not listed on IDEAS
    15. Maria GOULA & Christos Ap. LADIAS & Olga GIOTI-PAPADAKI & Nikolaos HASANAGAS, 2015. "The Spatial Dimension Of Environment-Related Attitudes: Does Urban Or Rural Origin Matter?," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 115-129, December.
    16. repec:hrs:journl:v:3:y:2011:i:1:p:13-22 is not listed on IDEAS
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    1. Amitrajeet A. Batabyal & Hamid Beladi, 2023. "Centralized versus Decentralized Cleanup of River Water Pollution: An Application to the Ganges," Games, MDPI, vol. 14(5), pages 1-12, October.
    2. Batabyal, Amitrajeet, 2023. "The representative Kanpur tannery’s Ganges water pollution problem," MPRA Paper 117786, University Library of Munich, Germany, revised 19 May 2023.
    3. Amitrajeet Batabyal & Hamid Beladi, 2024. "Decentralized vs. Centralized Water Pollution Cleanup in the Ganges in a Model with Three Cities," Networks and Spatial Economics, Springer, vol. 24(2), pages 383-394, June.
    4. Batabyal, Amitrajeet A. & Yoo, Seung Jick, 2024. "Heterogeneity in population and values and water pollution clean-up: The Ganges in Kanpur and Varanasi, India," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1527-1534.
    5. Batabyal, Amitrajeet & Yoo, Seung Jick, 2023. "Heterogeneity in population and values and water pollution control: The Ganges in Kanpur and Varanasi, India," MPRA Paper 120289, University Library of Munich, Germany, revised 06 Feb 2024.
    6. Batabyal, Amitrajeet & Kourtit, Karima & Nijkamp, Peter, 2022. "Polluting tanneries and small farmers in Kanpur, India: a theoretical analysis," MPRA Paper 115216, University Library of Munich, Germany, revised 31 Aug 2022.

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    More about this item

    Keywords

    Ganges River; Leather Production; Tannery; Waste Treatment; Water Pollution;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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