India’s economic growth and environmental sustainability : what are the tradeoffs ?
One of the key environmental problems facing India is that of particle pollution from the combustion of fossil fuels. This has serious health consequences and with the rapid growth in the economy these impacts are increasing. At the same time, economic growth is an imperative and policy makers are concerned about the possibility that pollution reduction measures could reduce growth significantly. This paper addresses the tradeoffs involved in controlling local pollutants such as particles. Using an established Computable General Equilibrium model, it evaluates the impacts of a tax on coal or on emissions of particles such that these instruments result in emission levels that are respectively 10 percent and 30 percent lower than they otherwise would be in 2030. The main findings are as follows: (i) A 10 percent particulate emission reduction results in a lower gross domestic product but the size of the reduction is modest; (ii) losses in gross domestic proudct from the tax are partly offset by the health gains from lower particle emissions; (iii) the taxes reduce emissions of carbon dioxide by about 590 million tons in 2030 in the case of the 10 percent reduction and 830 million tons in the case of the 30 percent reduction; and (iv) taken together, the carbon dioxide reduction and the health benefits are greater than the loss of gross domestic product in both cases.
|Date of creation:||01 Sep 2012|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maurizio Bussolo & David O’Connor, 2001. "Clearing the Air in India: The Economics of Climate Policy with Ancillary Benefits," OECD Development Centre Working Papers 182, OECD Publishing.
- Lars Bergman, 1991. "General equilibrium effects of environmental policy: A CGE-modeling approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(1), pages 43-61, March.
- Yang, Hao-Yen, 2001. "Trade liberalization and pollution: a general equilibrium analysis of carbon dioxide emissions in Taiwan," Economic Modelling, Elsevier, vol. 18(3), pages 435-454, August.
- Maureen L. Cropper & Nathalie B. Simon & Anna Alberini & Seema Arora & P.K. Sharma, 1997. "The Health Benefits of Air Pollution Control in Delhi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1625-1629.
- Beghin, John C. & Bowland, Bradley J. & Dessus, S bastien & Roland-Holst, David & Mensbrugghe, Dominique van der, 2002.
"Trade integration, environmental degradation, and public health in Chile: assessing the linkages,"
Environment and Development Economics,
Cambridge University Press, vol. 7(02), pages 241-267, May.
- John C. Beghin & Brad J. Bowland & Sebastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1999. "Trade Integration, Environmental Degradation, and Public Health in Chile: Assessing the Linkages," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp211, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Beghin, John C. & Bowland, Brad J. & Dessus, Sebastien & Roland-Holst, David & Van der Mensbrugghe, Dominique, 2002. "Trade Integration, Environmental Degradation, and Public Health in Chile: Assessing the Linkages," Staff General Research Papers Archive 5121, Iowa State University, Department of Economics.
- John C. Beghin & Brad J. Bowland & Sebastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1999. "Trade Integration, Environmental Degradation, and Public Health in Chile: Assessing the Linkages," Center for Agricultural and Rural Development (CARD) Publications 99-wp211, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- M. Murty & Surender Kumar & Kishore Dhavala, 2007. "Measuring environmental efficiency of industry: a case study of thermal power generation in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 31-50, September.
- M N, Murty & Kumar, Surender & Dhavala, Kishore, 2006. "Measuring Environmental Efficiency of Industry: A Case Study of Thermal Power Generation in India," MPRA Paper 1693, University Library of Munich, Germany.
- Edwards, T. Huw. & Hutton, John P., 2001. "Allocation of carbon permits within a country: a general equilibrium analysis of the United Kingdom," Energy Economics, Elsevier, vol. 23(4), pages 371-386, July.
- Willem Gunning, Jan & Keyzer, Michiel A., 1995. "Applied general equilibrium models for policy analysis," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 35, pages 2025-2107 Elsevier.
- Ojha, Vijay P., 2009. "Carbon emissions reduction strategies and poverty alleviation in India," Environment and Development Economics, Cambridge University Press, vol. 14(03), pages 323-348, June.
- John Beghin & Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1996. "General Equilibrium Modelling of Trade and the Environment," OECD Development Centre Working Papers 116, OECD Publishing.
- Sengupta, Ishita, 2007. "Optimal time for investment to regulate emissions of particulate matter in Indian thermal power plants," Environment and Development Economics, Cambridge University Press, vol. 12(06), pages 827-860, December.
- Jorgenson, Dale W. & Wilcoxen, Peter J., 1990. "Intertemporal general equilibrium modeling of U.S. environmental regulation," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 715-744.
- Ianchovichina, Elena & Darwin, Roy & Shoemaker, Robbin, 2001. "Resource use and technological progress in agriculture: a dynamic general equilibrium analysis," Ecological Economics, Elsevier, vol. 38(2), pages 275-291, August. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6208. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.