Farmers’ Willingness to Pay to Avert the Negative Externalities of Pollution of Dyeing Industry in Tamil Nadu

Effluents discharged by several industries, particularly the textile dyeing industry, have led to severe pollution of surface and groundwater sources and soils, which have ultimately affected the livelihood of the poor. Environmental problems in the agricultural sector caused by dyeing industrial pollution in Karur district have been discussed in this study. Averting Expenditure Approach and Contingent Valuation technique have been employed for this purpose. The farm income and distance between farm and polluted river have been found significant in deciding the value of polluted lands. The pollution averting expenditure incurred by the farmers increases with increase in the intensity of pollution. It is mainly the farm income that determines the pollution averting expenditure. The farmers in the study area are well aware about the detrimental effects of pollution and they have expressed their willingness to pay for internalizing the pollution effects even though it is mainly the duty of the polluters.