Economics of Water Pollution
Ahmad, J., B. N. Golder, S. Misra, M. Jakariya et al
(2002), 'Willingness to pay for arsenic free ‘safe’
drinking water in Bangladesh', (Field note / Water and Sanitation Program), New Delhi, India : Water
and Sanitation Program - South Asia 16 p.
Brief description of a study on willingness to pay for arsenic-free, safe drinking water in rural
Bangladesh which investigated the factors that influence demand for arsenic-free, safe drinking water
and examined preferences regarding household/community-based arsenic mitigation technologies. The
focus of this report is on the design, particularly the methodology used for estimating willingness to
pay (WTP).The estimates of WTP obtained are presented. Some key results of the field survey,
together with the main findings and policy recommendations, have been published in a separate note
entitled, 'Fighting arsenic, listening to rural communities : findings from a study on willingness to pay
for arsenic-free, safe drinking water in rural Bangladesh'.
Full text available online at:
Cao, H. and S. Ikeda (2005), ‘Inter-zonal tradable discharge permit system to control water pollution in
Tianjin, China’, Environmental Science and Technology 39(13): 4692-4699.
Abstract: In recent years, Chinese environmental authorities have expressed interest in the use of
Tradable Discharge Permits (TDP) as a regulatory instrument to control pollutant emissions.
Environmental professionals still have not had enough experience however, in designing and managing
TDP systems, especially for non-uniformly dispersed pollutants. As an empirical study, this paper
proposes an inter-zonal TDP system and analyzes its effectiveness in cost saving and environmental
protection for reducing water pollutant COD (Chemical oxygen demand) in Tianjin, China. Zonal
permit system (ZPS) and emission permit system (EPS) are discussed for comparison. The inter-zonal
TDP System is demonstrated to improve cost efficiency by allowing permit trades between zones, as
long as water
quality constraints are satisfied. The transactions are assumed to proceed in a multilateral
sequential way and are simulated with a circularly running linear programming (LP) model. The
simulation of permit transactions among 20 firms shows that to reach the same COD removal target,
ZPS, inter-zonal TDP system, and EPS lowered the total reduction cost by 12.8%, 14.6%, and 15.8%,
respectively. EPS, however, brought about "hot spots" problem. Finally, the transaction costs and
sensitivity of the three TDP systems to changes in both COD reduction rate and the initial permit