The Laguna Lake Development Authority (LLDA) introduced a pollution charge in 1997, known as the Environmental User Fee System, which is a market-based instrument designed to reduce water pollution from industry. The system administers two types of fees: a fixed fee and a variable fee that is determined by the biochemical oxygen demand (BOD) loading. This variable charge allows industries to determine the amount of pollutants they are willing to discharge into the lake depending on their ability to pay. The EUFS is forcing industries to take pollution control measures to avoid a financial penalty for discharging polluted wastewater.
This is an excerpt of a case study from WaterWealth, a publication on basin management across Asia and the Pacific. WaterWealth is available for download on the
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