Effluent charge reform for controlling water pollution in the Malaysian crude palm oil industry

This study analyzes the costs borne by Malaysian palm oil mills (POMs) in order to reach standard levels. A number of studies have been conducted on Malaysian palm oil mills; however, none has obtained the marginal abatement cost (MAC) through an estimated total cost function. More particularly, as...

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Veröffentlicht in:Environment and development economics 2012-12, Vol.17 (6), p.781-794
Hauptverfasser: Hojat, Amir Hossein Montazer, Rahim, Khalid Abdul
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creator Hojat, Amir Hossein Montazer
Rahim, Khalid Abdul
description This study analyzes the costs borne by Malaysian palm oil mills (POMs) in order to reach standard levels. A number of studies have been conducted on Malaysian palm oil mills; however, none has obtained the marginal abatement cost (MAC) through an estimated total cost function. More particularly, as far as inflation is concerned, the effluent-related fee and effluent charge specified have not been revised within the past two decades. In addition, to our knowledge, there has not been any study comparing MAC to the mills of the two different methods of disposal, namely watercourse and on land. Our results show that, to force POMs to meet the standard, the effluent charge must be set higher, equaling the MAC. While the results show the existence of economies of scale in abatement activity, setting the effluent-related fee equal to the MAC may encourage mills to further abate their water pollution.
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A number of studies have been conducted on Malaysian palm oil mills; however, none has obtained the marginal abatement cost (MAC) through an estimated total cost function. More particularly, as far as inflation is concerned, the effluent-related fee and effluent charge specified have not been revised within the past two decades. In addition, to our knowledge, there has not been any study comparing MAC to the mills of the two different methods of disposal, namely watercourse and on land. Our results show that, to force POMs to meet the standard, the effluent charge must be set higher, equaling the MAC. 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source PAIS Index; Cambridge Journals; Jstor Complete Legacy
subjects Abatement
Acetal resins
Biochemical oxygen demand
Charge
Cost
Cost estimates
Cost functions
Economic models
Economic theory
Effluent standards
Effluents
Environmental economics
Environmental policy
Environmental quality
Fees
Fees & charges
Industrial effluents
Inflation
Land
Marginal abatement costs
Marginal costs
Mills
Oils & fats
Palm oil
Petroleum industry
Pollutants
Pollution abatement
Pollution control
River ecology
Studies
Vegetable oils
Wastewater
Water pollution
Water pollution control
Water quality
title Effluent charge reform for controlling water pollution in the Malaysian crude palm oil industry
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