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Designing Economic Instruments and Participatory Institutions for Environmental Management in India


  • M. N. Murty


This paper examines the possibility of using economic instruments, especially pollution taxes and bargaining approaches, as a means to encourage or improve people's participation in environmental management in India. It provides an intuitive description of methods for designing economic instruments and bargaining approaches. A case study describes the estimation of pollution taxes for controlling air pollution in thermal power generation in India. Another case study examining some bargaining methods that are already in force in India shows their usefulness in controlling industrial pollution.Key Words: Pollution tax, Bargaining, Collective action, Transaction costs, Decentralized solutions, India

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  • M. N. Murty, "undated". "Designing Economic Instruments and Participatory Institutions for Environmental Management in India," Working papers 48, The South Asian Network for Development and Environmental Economics.
  • Handle: RePEc:snd:wpaper:48

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    1. Mendelsohn, Robert & Dinar, Ariel & Sanghi, Apurva, 2001. "The effect of development on the climate sensitivity of agriculture," Environment and Development Economics, Cambridge University Press, vol. 6(01), pages 85-101, February.
    2. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-771, September.
    3. Dinar, A. & Mendelsohn, R. & Evenson, R. & Parikh, J. & Sanghi, A. & Kumar, K. & McKinsey, J. & Lonergen, S., 1998. "Measuring the Impact of CLimate Change on Indian Agriculture," Papers 402, World Bank - Technical Papers.
    4. Wolfram Schlenker & Michael J. Roberts, 2008. "Estimating the Impact of Climate Change on Crop Yields: The Importance of Nonlinear Temperature Effects," NBER Working Papers 13799, National Bureau of Economic Research, Inc.
    5. Cline, William R, 1996. "The Impact of Global Warming on Agriculture: Comment," American Economic Review, American Economic Association, vol. 86(5), pages 1309-1311, December.
    6. William R. Cline, 2007. "Global Warming and Agriculture: Impact Estimates by Country," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4037.
    7. World Bank, 2008. "Climate Change Impacts in Drought and Flood Affected Areas : Case Studies in India," World Bank Other Operational Studies 8075, The World Bank.
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