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Title: Can tax combat pollution? : an assessment of the Sri Lankan rubber industry
Authors: Edirisinghe, Jagath
Bellamy, Rufus
Date: 2008
Publisher: SANDEE, Kathmandu, NP
Series/Report no.: SANDEE policy brief / South Asian Network for Development and Environmental Economics; no. 29-08
Abstract: Rubber processing in Sri Lanka is one of the most polluting industrial activities in the country, and, the current ‘command and control’ system of pollution control is proving to be ineffective. Now, a new SANDEE research suggests that taxation could be used to encourage the industry to clean up its act. // The SANDEE study recommends that the government should levy a tax equivalent to 8.6 per cent of the total annual turnover of the rubber industry. It argues that this would provide an incentive for the rubber industry to meet environmental standards. Such an economic instrument would also motivate the Sri Lankan Central Environmental Authority to monitor effluents more carefully, and that would give polluting firms an incentive to find innovative ways of dealing with their waste, such as recycling the chemicals in their effluents.
Description: This policy brief is based on SANDEE working paper no. 30-08, "Taxing pollution : a case for reducing the environmental impacts of rubber production in Sri Lanka"
Project Number: 102580
Project Title: South Asian Network for Development and Environmental Economics (SANDEE)
Access: Open Access
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