The feasibility of tradable discharge permit system for water pollution in the Philippines
Date
2008-10
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Abstract
This paper assesses the feasibility of tradable discharge permit system in the Philippines based on the case of Laguna Lake Development Authority which has pioneered the use of market-based instrument called the Environment User Fee System, a non tradable permit system, to address water pollution in Laguna de Bay Region which serves as a waste sink for Metro Manila and provinces of Laguna, Rizal, Batangas, Cavite and Quezon. The assessment of the feasibility of tradable permits is extended to Regions 3, 6 and 12. Tradable and non tradable permits systems are compared using cost-benefit analysis and it is shown that tradable permit is less costly and more beneficial than non tradable permit. The feasibility of tradable permit is assessed relative to technical, institutional, economic and social pre-conditions. Based on these pre-conditions the Laguna Lake Development Authority Environment User Fee System should graduate into a tradable permit system if sustainability and environment protection are to be achieved in the foreseeable future. In Regions 3, 6, and 12, given the current state of water bodies, the Environment Management Bureau responsible for water management in these regions should consider the adoption of the tradable permit system but only upon the satisfaction of some pre-conditions to ensure the success of the system.
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Water pollution, Environmental economics, Water management, Water quality, Water discharge permit, Environmental policy