An Effluent Charge for Sarangani Bay, Philippines: An Ex-ante Assessment
Anabeth L. Indab
Aireen I. Guzman
Ricardo T. Bagarinao
This study looks at the implications of using an effluent charge to control industrial pollution in Sarangani Bay, the Philippines. It finds that an effluent charge of Pesos 6/kg (USD 0.11/kg) on BOD would bring about a 92% drop in industrial pollution. This would be sufficient for the waters of the bay to meet the national Class SB ambient pollution standard. The study also finds that the total abatement cost under this level of charge would be about Pesos 14 million (USD 265,000) per year less than the cost of the current command and control scheme. In light of these findings, the study recommends that the government of the Philippines should consider using such an economic instrument.
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