Market-Based Instrument for Waste Water Management in Thailand (in English)
Leamthai Poovanich and Assoc. Prof. Ruangrai Tokrisna, Ph.D.
This study tested the efficiency of some market-based instruments (MBI) in coping with waste water pollution in Thailand. It comprises three policies: 1) tradable water permit at 4.98 Baht/permit, 2) emission charge for households at 0.83 Baht/m3, and 3) “1” and “2” applied together. The analysis used the computable general equilibrium (CGE) model to investigate the economy-wide impacts of the policies. The simulation results indicated that MBI is an efficient management tool for waste water management. The first policy would maintain the volume of waste water from industry sector at the initial level. The second would decrease household waste water by 28.29 million kg – equivalent BOD/year. The same results were obtained when the two policies used together, but household waste water decreased further to 29.84 million kg – equivalent BOD/year. The policies would enable the government to raise revenue, which can be used for waste water management.
Keywords: waste water management, market-based instrument (MBI), computable general equilibrium (CGE), social accounting matrices (SAM)
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