IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v141y2020ics030142152030207x.html
   My bibliography  Save this article

Green Growth and the Right to Energy in India

Author

Listed:
  • Azad, Rohit
  • Chakraborty, Shouvik

Abstract

In this paper, we propose an Energy Policy with Equity (EPE) for India, which will fundamentally change the energy mix of the Indian economy towards clean, green energy and will guarantee universal access to formal sources of energy like electricity, up to a certain amount. Any carbon mitigation strategy needs to alter India’s dependence on fossil fuels, requiring a systemic overhaul of its energy mix. Implementing a carbon tax will mitigate emissions and mobilise revenue. While part of this carbon tax revenue could be used to change the energy mix, the other part could be used for an in-kind transfer of free energy, up to a limit, beyond which it becomes fully chargeable from the first unit consumed. This we call the Right to Energy programme. We find that in order to implement this programme and also to meet the global carbon reduction goals, the necessary tax would be $60.4 per metric ton of carbon dioxide. The free entitlement of fuel and electricity per household comes out to be 2268 kWh per annum, and there is an annual universal travel pass of $17.9 per person for use in public transport.

Suggested Citation

  • Azad, Rohit & Chakraborty, Shouvik, 2020. "Green Growth and the Right to Energy in India," Energy Policy, Elsevier, vol. 141(C).
  • Handle: RePEc:eee:enepol:v:141:y:2020:i:c:s030142152030207x
    DOI: 10.1016/j.enpol.2020.111456
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142152030207X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2020.111456?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anwar Shah & Bjorn Larsen, 2014. "Carbon taxes, the greenhouse effect, and developing countries," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 353-402, May.
    2. Fremstad, Anders & Paul, Mark, 2019. "The Impact of a Carbon Tax on Inequality," Ecological Economics, Elsevier, vol. 163(C), pages 88-97.
    3. Matthew Riddle & James Boyce, 2007. "Cap and Dividend: How to Curb Global Warming while Protecting the Incomes of American Families," Working Papers wp150, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. (No last name available), Himanshu, 2013. "Poverty and Food Security in India," ADB Economics Working Paper Series 369, Asian Development Bank.
    5. Roberton C. Williams III & Hal Gordon & Dallas Burtraw & Jared C. Carbone & Richard D. Morgenstern, 2015. "The Initial Incidence of a Carbon Tax Across Income Groups," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(1), pages 195-214, March.
    6. Dale W. Jorgenson & Richard J. Goettle & Mun S. Ho & Peter J. Wilcoxen, 2015. "Carbon Taxes and Fiscal Reform in the United States," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(1), pages 121-138, March.
    7. Metcalf, Gilbert E., 1999. "A Distributional Analysis of Green Tax Reforms," National Tax Journal, National Tax Association;National Tax Journal, vol. 52(4), pages 655-682, December.
    8. Fan Zhang, 2019. "In the Dark," World Bank Publications - Books, The World Bank Group, number 30923, December.
    9. Brenner, Mark & Riddle, Matthew & Boyce, James K., 2007. "A Chinese sky trust?: Distributional impacts of carbon charges and revenue recycling in China," Energy Policy, Elsevier, vol. 35(3), pages 1771-1784, March.
    10. Khera, Reetika, 2014. "Cash vs. in-kind transfers: Indian data meets theory," Food Policy, Elsevier, vol. 46(C), pages 116-128.
    11. Metcalf, Gilbert E., 1999. "A Distributional Analysis of Green Tax Reforms," National Tax Journal, National Tax Association, vol. 52(n. 4), pages 655-82, December.
    12. Shahbaz, Muhammad & Gozgor, Giray & Hammoudeh, Shawkat, 2019. "Human capital and export diversification as new determinants of energy demand in the United States," Energy Economics, Elsevier, vol. 78(C), pages 335-349.
    13. Sreenivasan Subramanian & D. Jayaraj, 2006. "The Distribution of Household Wealth in India," WIDER Working Paper Series RP2006-116, World Institute for Development Economic Research (UNU-WIDER).
    14. Roberton C. Williams III & Hal Gordon & Dallas Burtraw & Jared C. Carbone & Richard D. Morgenstern, 2014. "The Initial Incidence of a Carbon Tax Across U.S. States," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(4), pages 807-830, December.
    15. Jensen, Jesper & Tarr, David, 2002. "Trade, foreign exchange, and energy policies in the Islamic Republic of Iran : reform agenda, economic implications, and impact on the poor," Policy Research Working Paper Series 2768, The World Bank.
    16. Boyce, James K., 2018. "Carbon Pricing: Effectiveness and Equity," Ecological Economics, Elsevier, vol. 150(C), pages 52-61.
    17. repec:pri:rpdevs:deaton_price_trends_in_india_version_3_jan_08_all.pdf is not listed on IDEAS
    18. Warwick J. McKibbin & Adele C. Morris & Peter J. Wilcoxen & Yiyong Cai, 2015. "Carbon Taxes and U.S. Fiscal Reform," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(1), pages 139-156, March.
    19. Younger, Stephen D, et al, 1999. "Tax Incidence in Madagascar: An Analysis Using Household Data," The World Bank Economic Review, World Bank, vol. 13(2), pages 303-331, May.
    20. Anan Wattanakuljarus, 2019. "Effects and burdens of a carbon tax scheme in Thailand," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 173-219, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Binju P Raj & Chandan Swaroop Meena & Nehul Agarwal & Lohit Saini & Shabir Hussain Khahro & Umashankar Subramaniam & Aritra Ghosh, 2021. "A Review on Numerical Approach to Achieve Building Energy Efficiency for Energy, Economy and Environment (3E) Benefit," Energies, MDPI, vol. 14(15), pages 1-26, July.
    2. Baniya, Bishal & Giurco, Damien & Kelly, Scott, 2021. "Green growth in Nepal and Bangladesh: Empirical analysis and future prospects," Energy Policy, Elsevier, vol. 149(C).
    3. Wang, Zhaohua & Liu, Qiang & Zhang, Bin, 2022. "What kinds of building energy-saving retrofit projects should be preferred? Efficiency evaluation with three-stage data envelopment analysis (DEA)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    4. Xiaohang Wu & Hasan Dinçer & Serhat Yüksel, 2022. "Analysis of crowdfunding platforms for microgrid project investors via a q-rung orthopair fuzzy hybrid decision-making approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-22, December.
    5. Syed Abdul Rehman Khan & Zhang Yu & Muhammad Umar & Hafiz Muhammad Zia‐ul‐haq & Muhammad Tanveer & Laeeq Razzak Janjua, 2022. "Renewable energy and advanced logistical infrastructure: Carbon‐free economic development," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 693-702, August.
    6. Azad, Rohit & Chakraborty, Shouvik, 2023. "An Indian Green Deal," Ecological Economics, Elsevier, vol. 209(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fremstad, Anders & Paul, Mark, 2019. "The Impact of a Carbon Tax on Inequality," Ecological Economics, Elsevier, vol. 163(C), pages 88-97.
    2. Nils Ohlendorf & Michael Jakob & Jan Christoph Minx & Carsten Schröder & Jan Christoph Steckel, 2021. "Distributional Impacts of Carbon Pricing: A Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(1), pages 1-42, January.
    3. Nils Ohlendorf & Michael Jakob & Jan Christoph Minx & Carsten Schröder & Jan Christoph Steckel, 2018. "Distributional Impacts of Climate Mitigation Policies - a Meta-Analysis," Discussion Papers of DIW Berlin 1776, DIW Berlin, German Institute for Economic Research.
    4. James Boyce & Matthew Riddle & Mark D. Brenner, 2005. "A Chinese Sky Trust? Distributional Impacts of Carbon charges and Revenue Recycling in China," Working Papers wp_brenner_riddle_boyce, Political Economy Research Institute, University of Massachusetts at Amherst.
    5. Brenner, Mark & Riddle, Matthew & Boyce, James K., 2007. "A Chinese sky trust?: Distributional impacts of carbon charges and revenue recycling in China," Energy Policy, Elsevier, vol. 35(3), pages 1771-1784, March.
    6. Cullenward, Danny & T. Wilkerson, Jordan & Wara, Michael & Weyant, John P., 2016. "Dynamically estimating the distributional impacts of U.S. climate policy with NEMS: A case study of the Climate Protection Act of 2013," Energy Economics, Elsevier, vol. 55(C), pages 303-318.
    7. Rausch, Sebastian & Schwarz, Giacomo A., 2016. "Household heterogeneity, aggregation, and the distributional impacts of environmental taxes," Journal of Public Economics, Elsevier, vol. 138(C), pages 43-57.
    8. Dorband, Ira Irina & Jakob, Michael & Kalkuhl, Matthias & Steckel, Jan Christoph, 2019. "Poverty and distributional effects of carbon pricing in low- and middle-income countries – A global comparative analysis," World Development, Elsevier, vol. 115(C), pages 246-257.
    9. Wu, Libo & Zhang, Shuaishuai & Qian, Haoqi, 2022. "Distributional effects of China's National Emissions Trading Scheme with an emphasis on sectoral coverage and revenue recycling," Energy Economics, Elsevier, vol. 105(C).
    10. Alvarez, Maximiliano, 2019. "Distributional effects of environmental taxation: An approximation with a meta-regression analysis," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 382-401.
    11. Stephie Fried & Kevin Novan & William B. Peterman, 2021. "Recycling Carbon Tax Revenue to Maximize Welfare," Finance and Economics Discussion Series 2021-023, Board of Governors of the Federal Reserve System (U.S.).
    12. William A Pizer & Steven Sexton, 2019. "The Distributional Impacts of Energy Taxes," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(1), pages 104-123.
    13. Julie Anne Cronin & Don Fullerton & Steven Sexton, 2019. "Vertical and Horizontal Redistributions from a Carbon Tax and Rebate," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(S1), pages 169-208.
    14. You-Yi Guo & Jin-Xu Lin & Shih-Mo Lin, 2022. "The Distribution Effects of a Carbon Tax on Urban and Rural Households in China," Sustainability, MDPI, vol. 14(13), pages 1-15, June.
    15. Frederick Ploeg, 2021. "Carbon pricing under uncertainty," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(5), pages 1122-1142, October.
    16. William Wills & Emilio Lebre La Rovere & Carolina Grottera & Giovanna Ferrazzo Naspolini & Gaëlle Le Treut & F. Ghersi & Julien Lefèvre & Carolina Burle Schmidt Dubeux, 2022. "Economic and social effectiveness of carbon pricing schemes to meet Brazilian NDC targets," Post-Print hal-03500923, HAL.
    17. Aubert, Diane & Chiroleu-Assouline, Mireille, 2019. "Environmental tax reform and income distribution with imperfect heterogeneous labour markets," European Economic Review, Elsevier, vol. 116(C), pages 60-82.
    18. Mireille Chiroleu-Assouline, 2022. "Rendre acceptable la nécessaire taxation du carbone. Quelles pistes pour la France ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 15-53.
    19. Hammerle, Mara & Best, Rohan & Crosby, Paul, 2021. "Public acceptance of carbon taxes in Australia," Energy Economics, Elsevier, vol. 101(C).
    20. Thomas Douenne & Adrien Fabre, 2019. "Can We Reconcile French People with the Carbon Tax? Disentangling Beliefs from Preferences," Policy Papers 2019.05, FAERE - French Association of Environmental and Resource Economists.

    More about this item

    Keywords

    Carbon tax; Right to Energy; Energy policy; Inequality; Asia; India;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:141:y:2020:i:c:s030142152030207x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.