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.

Bibliographic Details

Main Authors:	Mani, Muthukumara, Markandya, Anil, Sagar, Aarsi, Sahin, Sebnem
Other Authors:	World Bank, Washington, DC
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	2012-09
Subjects:	ABATEMENT, ABATEMENT COSTS, ABRASION, ACID, ACID RAIN, AIR, AIR POLLUTANTS, AIR POLLUTION, AIR POLLUTION CONTROL, AIR POLLUTION PROBLEMS, AIR QUALITY, ALTERNATIVE SCENARIOS, AMBIENT CONCENTRATIONS, ANNUAL GROWTH RATE, ASH, BIOGAS, BIOMASS, BOILERS, BUSINESS AS USUAL SCENARIO, CALORIFIC VALUE, CARBON, CARBON ABATEMENT, CARBON CAPTURE, CARBON DIOXIDE, CARBON DIOXIDE EMISSIONS, CARBON EMISSIONS, CARBON SEQUESTRATION, CARBONIZATION, CHEMICALS, CIRCULAR FLOW, CLEAN AIR, CLEAN AIR ACT, CLEAN ENERGY, CLEAN TECHNOLOGIES, CLEANER TECHNOLOGIES, CLIMATE, CLIMATE CHANGE, CO, CO2, COAL, COMBUSTION, COMPENSATING WAGE DIFFERENTIALS, CONCENTRATIONS OF POLLUTANTS, COST OF PRODUCTION, CRUDE OIL, DAMAGES, DEFORESTATION, DEMAND FOR ENERGY, DEMOGRAPHICS, DEVELOPED COUNTRIES, DEVELOPMENT ECONOMICS, DIESEL, DISTRIBUTIONAL IMPACTS, DISTRIBUTIONAL IMPLICATIONS, ECOLOGICAL ECONOMICS, ECONOMIC ACTIVITY, ECONOMIC BENEFITS, ECONOMIC COSTS, ECONOMIC DATA, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC IMPACTS, ECONOMIC INCENTIVES, ECONOMICS, ECOSYSTEM, EFFICIENCY GAINS, EFFICIENCY IMPROVEMENTS, ELASTICITIES, ELECTRICITY, ELECTRICITY GENERATION, EMISSION, EMISSION ABATEMENT, EMISSION BASELINE, EMISSION COEFFICIENTS, EMISSION CONTROL, EMISSION DATA, EMISSION ESTIMATES, EMISSION LEVEL, EMISSION LEVELS, EMISSION REDUCTION, EMISSION REDUCTION POLICIES, EMISSION TAXES, EMISSION TRADING, EMISSIONS, EMISSIONS FROM FUEL, EMISSIONS FROM FUEL COMBUSTION, EMISSIONS REDUCTION, END-USE ENERGY EFFICIENCY, ENERGY CONSUMPTION, ENERGY DEMAND, ENERGY EFFICIENCY, ENERGY POLICY, ENERGY SOURCES, ENERGY USE, ENVIRONMENTAL, ENVIRONMENTAL BENEFITS, ENVIRONMENTAL DEGRADATION, ENVIRONMENTAL ECONOMICS, ENVIRONMENTAL IMPACTS, ENVIRONMENTAL ISSUES, ENVIRONMENTAL POLICY, ENVIRONMENTAL PROBLEMS, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL QUALITY, ENVIRONMENTAL REGULATION, ENVIRONMENTAL REGULATIONS, ENVIRONMENTAL TARGETS, ENVIRONMENTAL TAXATION, ENVIRONMENTAL TAXES, EQUILIBRIUM, EXTERNALITIES, FATS, FERROUS METALS, FINANCIAL SECTOR, FINANCIAL SUPPORT, FISHING, FOOD POLICY RESEARCH, FOREST, FORESTRY, FORESTS, FOSSIL FUEL, FOSSIL FUEL USE, FOSSIL FUELS, FUEL CONSUMPTION, FUEL SUBSTITUTION, FUEL USE, GASES, GENERAL EQUILIBRIUM MODEL, GLOBAL WARMING, GREENHOUSE, GREENHOUSE GAS, GREENHOUSE GAS ABATEMENT, GROWTH ASSUMPTIONS, HEAVY FUEL OIL, HYDROLOGY, IMPACTS OF EMISSION REDUCTION, INCOME, INDUSTRIAL POLLUTION, INFRASTRUCTURE INVESTMENT, INTERMEDIATE GOODS, INTERMEDIATE INPUTS, IRON, LABOR FORCE, LABOR MARKETS, LABOR PRODUCTIVITY, LABOR SUPPLY, LEVELS OF EMISSIONS, LIQUEFIED PETROLEUM GAS, MARGINAL ABATEMENT, MARGINAL ABATEMENT COSTS, MARGINAL COSTS, METALS, MONETARY TERMS, NATIONAL ACCOUNTS, NATURAL CAPITAL, NATURAL GAS, NATURAL RESOURCES, NITRATES, NITROGEN, NITROGEN OXIDES, NOX, NUCLEAR ENERGY, OIL, OIL EQUIVALENT, OIL PRICE, OIL PRODUCTS, OILS, PAPER PRODUCTS, PARTICLES, PARTICULATE, PARTICULATE MATTER, PERFORMANCE STANDARDS, PETROLEUM PRODUCTS, PM10, POLICY INSTRUMENTS, POLICY MAKERS, POLICY SCENARIOS, POLLUTANT CONCENTRATIONS, POLLUTION, POLLUTION CONTROL, POLLUTION REDUCTION, POPULATION GROWTH, POWER GENERATION, POWER PLANTS, POWER STATIONS, PP, PRICE CHANGES, PRICE TAG, PRICE VOLATILITY, PRIVATE CONSUMPTION, PRODUCER PRICE, PRODUCTION PROCESSES, PRODUCTIVITY GROWTH, PUBLIC GOOD, QUALITY STANDARDS, RELATIVE PRICES, RENEWABLE ENERGY, RESEARCH AGENDA, RESOURCE ALLOCATION, RESOURCE CONSERVATION, RESOURCE ECONOMICS, RESOURCE USE, RISK MANAGEMENT, RIVER BASINS, SCENARIOS, SO2, SOIL DEGRADATION, SOX, SUGAR CANE, SULFATES, SULFUR, SULFUR DIOXIDE, SULFUR EMISSIONS, SUSTAINABLE GROWTH, TAX RATES, TECHNOLOGICAL CHANGE, TECHNOLOGICAL PROGRESS, TOTAL EMISSIONS, TRADEOFFS, TRANSPORT SECTOR, UNCERTAINTIES, URBAN AIR POLLUTION, WASTE DISPOSAL, WATER QUALITY, WILLINGNESS TO PAY, WOOD PRODUCTS, WTP,
Online Access:	http://documents.worldbank.org/curated/en/2012/09/16763166/india s-economic-growth-environmental-sustainability-tradeoffs http://hdl.handle.net/10986/12057
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