Cutting the Costs of Cleanup: The Case for Tradable Discharge Permits in the Upper Nanpan River, China

Wendong Tao, Weimin Yang and Bo Zhou
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Wendong Tao: Yunnan Institute of Environmental Sciences
Weimin Yang: Yunnan Institute of Environmental Sciences
Bo Zhou: Yunnan Environmental Protection Bureau

No pb1998062, EEPSEA Policy Brief from Economy and Environment Program for Southeast Asia (EEPSEA)

Abstract: Water pollution is one of China's most pressing environmental issues, but a recent economic study in Yunnan province has found that in certain cases market forces can be harnessed to effectively drive river clean-up. The study looked at the feasibility of allowing industries along the heavily-polluted upper Nanpan River, Yunnan to trade permits for discharging waste into the watercourse. It found that such a tradable discharge permit (TDP) approach would be an efficient way of controlling pollution in the river and would also substantially reduce costs by providing flexibility to polluters. The study was done in light of the failure of the current non-tradable permits system and against the background of the Yunnan provincial government's resolve to carry out comprehensive water pollution control.

Keywords: Water pollution; China (search for similar items in EconPapers)
Date: 1998-06, Revised 1998-06
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