Environmental degradation in developing countries is a matter of life and death rather than quality of life and aesthetics. Water pollution accounts for a large number of diseases and consequent death in these countries. Present study primarily focus on the problem of water pollution management in India. Paper industry being one of the most water-intensive industry has been taken as a case study. A necessary theoretical background regarding institutional framework in India vis-a-vis with some major industrial countries to tackle environmental degradations, has been highlighted. A comprehensive analysis of alternatives institutional arrangements (market based, command-and-control and public participation) has been done. Water pollutant specific taxes-standard rates has been estimated for paper industry in India using different types of methodology. Various researchers have done excellent work to estimate industry specific taxes rates but still a lot of work is required to be carried out, which would enable the policy maker to incorporate the market based instruments to manage environment concerns. This study is a one step in that direction.
Principles of Microeconomics-I
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