Polluting tanneries and small farmers in Kanpur, India: a theoretical analysis

Amitrajeet Batabyal, Karima Kourtit and Peter Nijkamp

MPRA Paper from University Library of Munich, Germany

Abstract: We focus on the interaction between a representative polluting tannery and a negatively impacted small farmer in Kanpur, India. The tannery produces leather and toxic chemical waste that ends up in wastewater used by the small farmer to irrigate agricultural land and grow vegetables. The waste generated by the tannery is functionally related to its output of leather. The small farmer faces a capacity constraint that describes the maximum amount of vegetables he can grow. In this setting, we perform three tasks. First, we determine the optimal production of leather when the tannery does not account for the negative effect it has on the small farmer. Second, on the assumption that the tannery compensates the small farmer per unit of waste it generates, we ascertain the optimal compensation amount, the optimal output of leather, and the profit levels of the tannery and the small farmer. Finally, we compare the solutions in the preceding two cases and explain what accounts for the differences between them.

Keywords: chemical waste; irrigation; leather; small farmer; tannery (search for similar items in EconPapers)
JEL-codes: Q15 Q53 (search for similar items in EconPapers)
Date: 2022-05-14, Revised 2022-08-31
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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