ABAYOMI IBIYEMI, YASMIN MOHD ADNAN AND MD. NASIR DAUD
Abstract
Pollution charging theory relies on the measure of pollution generated per unit, control costs, and revenue generation. This study advocates a shift to one that factors explicitly, production capacity utilisation scales for the process industries. The paper aims at a change of behavior through an equity-driven, production-cognate pollution charging model predicated on the valuation principles of substitution and expectation. The inquiry fixates on what would be the approach to estimating pollution charge that could integrate industrys capacity utilisation and internal financial control system? It investigates control methodologies and presents an overview of charging systems in the selected countries. A case study industry is used in Nigeria to develop an existing use value charging assessment. Two commissioned experts scored the Scalage. A triangulation study verifies the approach. The study instigates a change of behaviour, by inducing industries to set productive capacity limits through a crossover of cost internalisation and compliance mechanisms.