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

Surender Kumar, Shunsuke Managi

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)709-733
Number of pages25
JournalEnvironment and Development Economics
Volume16
Issue number6
DOIs
Publication statusPublished - Dec 1 2011
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Development
  • Environmental Science(all)
  • Economics and Econometrics

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