Estimation of marginal abatement cost of water pollution in food processing industries

Student name: Ms Karuna Bhatia
Guide: Prof. Sukanya Das
Year of completion: 2025
Host Organisation: Jawaharlal Nehru University
Supervisor (Host Organisation): Dr Indrani Roy Chowdhury

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Abstract:

This research focuses on assessing the marginal abatement cost (MAC) of water pollution in the Food Processing Units of Sonipat, Haryana, with particular emphasis on the pollution of the Yamuna River. The approach, the Directional Output Distance Function (DODF), is applied to estimate the MAC and shadow prices for three key water pollution indicators: BOD, COD, and TSS. Additionally, it underscores the severity of water pollution in the region caused by industrial activities. Primary data for the analysis was gathered through field surveys and interviews, while secondary data was sourced from CMIE Prowess IQ, HPCB, and CPCB records. Drawing on the MAC and shadow price estimations, this study recommends replacing the existing command-and-control (CAC) framework with an incentive-based economic mechanism, such as a pollution tax tailored to specific pollutants.

Keywords: Marginal Abatement Cost, Directional Distance Output Function, Water Pollution, Environmental Tax, Industrial Pollution, Pollution Tax.