Wastewater Use in Cauliflower Production and Farmer’s Health: An Economic Analysis

Shahzad Kouser, Mr. Abedullah, Abdus Samie

Abstract


The present study aims to estimate the economic values of
negative externalities of wastewater use in cauliflower production.
Cost-benefit analysis is employed to estimate the farmer’s health
externalities in the production sector. The data are collected from 200
farmers (100 from each group, wastewater and freshwater) in the year
2006 from two peri-urban villages of Faisalabad city. Ignoring the value
of negative externalities, wastewater use is profitable in vegetable
production but when the economic value of negative externalities are
factored in the analysis, the results strongly discourage its use. The
cost of health externalities due to wastewater use in cauliflower
production (only for a three-month crop) is Rs 3.2 million from the 741
acres planted. In Faisalabad, 5,283 acres of vegetables are cultivated
using wastewater, and the value of total negative health externalities
amounts to Rs 90.7 million in a year. A huge economic loss due to
wastewater use may attract the attention of policy agents to intervene.
Among different available options, installation of a water treatment
plant appears to be most viable to minimise the external effect of
wastewater use in peri-urban agriculture.

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DOI: https://doi.org/10.30541/v48i1pp.47-66

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