IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The Trade-Off among Carbon Emissions, Economic Growth and Poverty Reduction in India

Listed author(s):
  • V. P. Ojha
Registered author(s):

    This study examines the consequences of a) a domestic carbon tax policy, and, b) participation in a global tradable emission permits regime on carbon emissions, Gross Domestic Product (GDP), and poverty, in India. The results, based a computable general equilibrium model of the Indian economy, show that a carbon tax policy that simply recycles carbon tax revenues to households imposes heavy costs in terms of lower economic growth and higher poverty. However, the fall in GDP and rise in poverty can be minimized or even prevented if the emission restriction target is a very mild one and tax revenues are transferred to the poor. A soft emission reduction target is all that India needs to set for itself, given that even a ten percent annual reduction in aggregate emissions will bring down its per capita emissions to a level far below global per capita emissions. On the other hand, participation in the tradable emission permits regime opens up an opportunity for India to sell surplus permits. India would then be able to use the revenues from permits to speed up GDP growth and poverty reduction and keep its per capita emission below the 1990 per capita global emissions level.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by The South Asian Network for Development and Environmental Economics in its series Working papers with number 24.

    in new window

    Date of creation:
    Handle: RePEc:snd:wpaper:24
    Contact details of provider: Postal:
    South Asian Network for Development and Environmental Economics PO Box: 8975, EPC: 1056 Kathmandu, Nepal

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:snd:wpaper:24. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anuradhak)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.