Heterogeneity in population and values and water pollution control: The Ganges in Kanpur and Varanasi, India

Amitrajeet Batabyal and Seung Jick Yoo

MPRA Paper from University Library of Munich, Germany

Abstract: We utilize the public good features of Ganges water pollution clean-up and conduct a game-theoretic analysis of an economy consisting of two Indian cities, Kanpur and Varanasi, through which the Ganges flows. We show how heterogeneity in the two cities in population and the value placed on pollution clean-up determines whether clean-up ought to be centralized or decentralized. Under decentralization, in several scenarios, it is optimal for only one city to clean-up pollution. Under centralization, this exclusive clean-up of pollution is suboptimal but the amount of pollution cleaned up can be larger or smaller than the amount cleaned up under decentralization. We note the broader environmental and public health implications of pollution control and contend that the two differences between Kanpur and Varanasi and the use of majority voting are key factors to consider when pondering how much pollution to clean up in this economy and in other settings.

Keywords: Clean-up; Ganges River; Population Difference; Values Difference; Water Pollution (search for similar items in EconPapers)
JEL-codes: D81 Q53 Q56 (search for similar items in EconPapers)
Date: 2023-06-03, Revised 2024-02-06
New Economics Papers: this item is included in nep-ene and nep-env
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