We surveyed rice farmers in two areas with the assumption that they had the same naturalenvironment conditions and social characteristics, and only differed with respect to pollution.One area was considered to be the polluted area, receiving wastewater from nearby industrialparks, while the other area was assumed to be the non-polluted area, being distant from sourcesof industrial pollutants. The productivity loss of rice production caused by water pollutionwas estimated by the difference in rice yield between the two regions (Translog productionfunction approach). The similar calculation was applied for cost increase and profit loss dueto water pollution by applying the methods of Cobb-Douglas cost function and translog profitfunction respectively.
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