On Unitization as a Way of Addressing Water Pollution in the Ganges in Kanpur, India

Batabyal, Amitrajeet and Beladi, Hamid (2025): On Unitization as a Way of Addressing Water Pollution in the Ganges in Kanpur, India.

Abstract

We study water pollution in the Ganges River caused by tanneries in Kanpur, India. We analyze the merits of a recent claim that unitizing or merging the polluting tanneries can improve water quality in the Ganges. We first describe the n≥2 polluting tanneries in Kanpur as a Cournot oligopoly and derive the equilibrium output of leather and profits. Second, we permit m<n tanneries to merge and determine the cost function, when the m tanneries can use their production facilities, and there are no other efficiency gains from unitization. Third, we examine when the m-tannery unitization is profitable to the unitized entity and to the non-unitized tanneries. Fourth, we discuss our conclusions about the profitability of the unitized and the non-unitized tanneries and comment on what our findings mean for improved water quality in the Ganges. Finally, we discuss some key regional dimensions of the Ganges water pollution problem caused by tanneries in Kanpur.

• Item Type: MPRA Paper
• Language: English
• Keywords: Ganges River, Merger, Tannery, Unitization, Water Pollution
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q25 - Water; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q28 - Government Policy

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