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Economic and Environmental Consequences of the impact of Industrial pollution: A case experience of Domestic Rural Water Supply

S. Boopathi, M. Rameshkumar


This paper is an attempt to view and assess the cornerstone of water pollution (industrial) in the rural communities and to assess the negative externalities i.e., loss of public health and agricultural production. There are more than 10004 industrial units in Tamil Nadu which have been classified under highly polluting or "red" category (TNPCB, 2006). Under this, there are a large number of textile bleaching and dyeing units in Tiruppur, Coimbatore district, Erode, and Karur districts of Tamilnadu,South India, which have contaminated rivers such as the Noyyal, Amaravathy and other water bodies. Water pollution reduces the amount of pure fresh water used for various purposes. Agriculture sector is the first victim of surface water pollution as water used for irrigation becomes unfit due to industrial effluent discharge. The major cultivated crops namely Cotton, Ragi, Brinjal, Chilly, Millet, Ground nut, Maize, Sugar cane and Sun-flower are the victim of industry water pollution. This paper discus the results obtained from the study made by the authors in Noyyal river region where the polluted water from dyeing and bleaching units in Tirupur are discharged into river water. The primary survey was conducted in way side villages of Noyyal River to analyze the proximity of industry, implications of social damage and its cost owing to industrial pollution. Negative externality due to industrial pollution on agriculture in Noyyal river command, Tamil Nadu is estimated. A systematic cost analysis revealed that in monetary terms the impact of industrial pollution on rural communities is quite extensive. Indiscriminate environmental problems due to industrial pollution of rivers has resulted in negative externalities which affect the rural communities in different forms such as increased water loss, productivity loss, land convertibility, reduction in cultivable area, opportunity cost loss due to health and thereof. The hedonic price mechanism has supported to estimate the farm land values. The irrigation systems are worsening due to pollution. This results in low productivity, poor employment and deteriorating economic conditions of landholders to be changed totally.


water pollution, negative externalities, hedonic price method, Damage cost

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