Environmental Economics: An old case study
Imagine a factory located upstream that pollutes a river. It produces steel for the automotive industry. Downstream, local fishermen find they catch less fishes due to the pollution. Both are flourishing businesses that produce wealth and prosperity for the community.
I will suggest a multicriteria analysis. If we take a look at this case, the river is a public good and has a direct use value. The fabric has the right to use it and the fisherman has the right to use it as well. This good is required for both parties to develop economic activities, which will benefit the community (yes, even the factory because it might be a source of employment for the habitants)
I think there’s no need to a survey because the river has a high use value for all the people, and both parties has the right to use the river. Taxes for instance, won’t be either a solution.
Because of the situation, setting a cap or limit for the contamination will be the best option in this case. The cap is important, because if there is no limit of pollution or the extraction of aluminum turns into a bigger scale, then this community will run out of environmental services.
The land management could also be a good solution. If the community creates a regulatory plan, for organizing the community’s activities, it’s possible to create less pollution from the fabric to the river.
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14 Dec 2011
por
Natalia Diaz Zamora
IMSD /
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