Unitization of Tanneries and Water Pollution in the Ganges in Kanpur, India: The Salience of Fixed Costs

Amitrajeet Batabyal

MPRA Paper from University Library of Munich, Germany

Abstract: We study the merits of regulating water pollution in the Ganges river caused by tanneries in Kanpur, India, by unitizing or merging the polluting tanneries. We first describe the � ≥ 2 polluting tanneries in Kanpur as a Cournot oligopoly in which all tanneries incur fixed and variable costs in producing leather. Second, we derive the Nash equilibrium output of leather and profits and discuss how many tanneries can survive in this equilibrium as a function of the fixed costs. Third, we permit �

Keywords: Fixed Cost; Ganges River; Tannery; Unitization; Water Pollution (search for similar items in EconPapers)
JEL-codes: G34 Q25 (search for similar items in EconPapers)
Date: 2025-02-15, Revised 2024-09-15
New Economics Papers: this item is included in nep-env and nep-gth
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