Alternative policy instruments for water pollution control :: A case study of Palm Oil Industries in Jambi Province

RESMANSYAH, Prof. Dr. Yonosuke Hara

2010 | Tesis | S2 Ilmu ekonomi

One of the main environmental issues in Jambi is water pollution. Thus far, the environmental policy instruments that have been applied by the government have not yielded satisfying result, and an alternative means needs to be considered. This study explores environmental policy instruments that can be applied by local administrations at the provincial level to address water pollution problems, particularly derived from the activities of palm oil mills, based on review of successful practices and adjust them to local conditions and constraints. Wastewater data from the activities of palm oil mills in 2007 and 2009, recorded by the local environmental laboratory, are used to analyze the environmental performance of the firms and their regulatory compliances. The data shows that the POME on average is above regulatory limits, particularly for the firms which applied pond stabilization systems in their abatement process, implies that there is lack of incentives for firms to reduce their pollution level. This situation is then illustrated using MAC-MEP model. Based on the models and successful practices, information disclosure is the alternative policy instruments that recommended to addresses the problems while strengthening current existing policy by changing the role of provincial environment agency.

Kata Kunci : policy instruments,Environments,Water pollution,Palm oil mills