Publication: India’s Economic Growth and Environmental Sustainability : What Are the Tradeoffs?
Date
2012-09
ISSN
Published
2012-09
Author(s)
Mani, Muthukumara
Markandya, Anil
Sagar, Aarsi
Sahin, Sebnem
Abstract
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.
Citation
“Mani, Muthukumara; Markandya, Anil; Sagar, Aarsi; Sahin, Sebnem. 2012. India’s Economic Growth and Environmental Sustainability : What Are the Tradeoffs?. Policy Research Working Paper; No. 6208. © http://openknowledge.worldbank.org/entities/publication/056c1226-777e-51b6-a514-98554d5ef7fc License: CC BY 3.0 IGO.”
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