Tanneries in Kanpur and pollution in the Ganges: A theoretical analysis

We study pollution in the Ganges river caused by tanneries city of Kanpur India. Two tanneries, A and B, are located on same bank Kanpur. Both produce leather production requires use chemicals that toxic to humans. Tannery is upstream from tannery B. A's depends directly only labor but B's use, chemical waste generated A, natural absorbing capacity Ganges. In this setting, we accomplish three tasks. First, determine equilibrium both benchmark case which there no pollution. Second, ascertain how altered when B accounts for negative externality imposed it A. Finally, analyze what happens two merge then discuss some policy implications emanating our research.