Taxation and Water Pollution Control of Industrial Activity: A Study of Sugar Industry

Document Type : Research Paper


1 . Ph.D Student, Department of Economics at the University of Sistan and Baluchestan,

2 Associate Professor, Department of Economics at the University of Sistan and Baluchestan


The Sugar industry is one of the highest water-consuming industries and due to organic matter contaminations and high BOD index of its wastewater, it is one of the most water-polluting industries. It imposes costly externalities to society. This survey aimed first to assess environmental efficiency and marginal abatement costs of BOD and then to estimate marginal abatement cost function and calculate pigovian tax using regression analysis. The results show in order to be in compliance with Iran’s national standard level of BODC, appropriate required pigouvian tax per kilogram of BOD for appropriate wastewater disposal to absorbent wells, surface waters and farmlands are respectively 739366, 739366 and 703069 Rials.
JEL Classification: C63، H23، P28، Q01


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