Economic Assessment of Environmental Pollution Damages Caused by Industry on Agriculture: The Case of Samsun Fertilizer (TÜGSAS) and Karadeniz Copper (KBI) Industries

Authors: HARUN TANRIVERMİŞ, ZİYA GÖKALP MÜLAYİM

Abstract: In this study, to assess the environmental pollution damages to agriculture the case of TÜGSAS and KBI industries were chosen. For this aim, change-in-productivity, preventive/defensive expenditures and contingent valuation approaches are applied to the selected case for assessing the pollution damage. The result indicates that the value of pollution damages to major agricultural crops in 1994 are estimated as 70.8 billion TL in Tekkeköy region. It has been determined that there is an inverse relationship between the crop losses ratio and the distance from the pollution sources. The minimum value of damages to environment caused by TÜGSAS and KBI is estimated as 62.4 billion TL/year by defensive expenditures approach. The damages caused by TÜGSAS and KBI on agriculture in this region are determined as 107.6 billion TL by the contingent valuation method.

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