World Bank, Washington, DCMani, MuthukumaraMarkandya, AnilSagar, AarsiSahin, Sebnem2013-01-022013-01-022012-09https://hdl.handle.net/10986/12057One 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.en-USCC BY 3.0 IGOABATEMENTABATEMENT COSTSABRASIONACIDACID RAINAIRAIR POLLUTANTSAIR POLLUTIONAIR POLLUTION CONTROLAIR POLLUTION PROBLEMSAIR QUALITYALTERNATIVE SCENARIOSAMBIENT CONCENTRATIONSANNUAL GROWTH RATEASHBIOGASBIOMASSBOILERSBUSINESS AS USUAL SCENARIOCALORIFIC VALUECARBONCARBON ABATEMENTCARBON CAPTURECARBON DIOXIDECARBON DIOXIDE EMISSIONSCARBON EMISSIONSCARBON SEQUESTRATIONCARBONIZATIONCHEMICALSCIRCULAR FLOWCLEAN AIRCLEAN AIR ACTCLEAN ENERGYCLEAN TECHNOLOGIESCLEANER TECHNOLOGIESCLIMATECLIMATE CHANGECOCO2COALCOMBUSTIONCOMPENSATING WAGE DIFFERENTIALSCONCENTRATIONS OF POLLUTANTSCOST OF PRODUCTIONCRUDE OILDAMAGESDEFORESTATIONDEMAND FOR ENERGYDEMOGRAPHICSDEVELOPED COUNTRIESDEVELOPMENT ECONOMICSDIESELDISTRIBUTIONAL IMPACTSDISTRIBUTIONAL IMPLICATIONSECOLOGICAL ECONOMICSECONOMIC ACTIVITYECONOMIC BENEFITSECONOMIC COSTSECONOMIC DATAECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC IMPACTSECONOMIC INCENTIVESECONOMICSECOSYSTEMEFFICIENCY GAINSEFFICIENCY IMPROVEMENTSELASTICITIESELECTRICITYELECTRICITY GENERATIONEMISSIONEMISSION ABATEMENTEMISSION BASELINEEMISSION COEFFICIENTSEMISSION CONTROLEMISSION DATAEMISSION ESTIMATESEMISSION LEVELEMISSION LEVELSEMISSION REDUCTIONEMISSION REDUCTION POLICIESEMISSION TAXESEMISSION TRADINGEMISSIONSEMISSIONS FROM FUELEMISSIONS FROM FUEL COMBUSTIONEMISSIONS REDUCTIONEND-USE ENERGY EFFICIENCYENERGY CONSUMPTIONENERGY DEMANDENERGY EFFICIENCYENERGY POLICYENERGY SOURCESENERGY USEENVIRONMENTALENVIRONMENTAL BENEFITSENVIRONMENTAL DEGRADATIONENVIRONMENTAL ECONOMICSENVIRONMENTAL IMPACTSENVIRONMENTAL ISSUESENVIRONMENTAL POLICYENVIRONMENTAL PROBLEMSENVIRONMENTAL PROTECTIONENVIRONMENTAL QUALITYENVIRONMENTAL REGULATIONENVIRONMENTAL REGULATIONSENVIRONMENTAL TARGETSENVIRONMENTAL TAXATIONENVIRONMENTAL TAXESEQUILIBRIUMEXTERNALITIESFATSFERROUS METALSFINANCIAL SECTORFINANCIAL SUPPORTFISHINGFOOD POLICY RESEARCHFORESTFORESTRYFORESTSFOSSIL FUELFOSSIL FUEL USEFOSSIL FUELSFUEL CONSUMPTIONFUEL SUBSTITUTIONFUEL USEGASESGENERAL EQUILIBRIUM MODELGLOBAL WARMINGGREENHOUSEGREENHOUSE GASGREENHOUSE GAS ABATEMENTGROWTH ASSUMPTIONSHEAVY FUEL OILHYDROLOGYIMPACTS OF EMISSION REDUCTIONINCOMEINDUSTRIAL POLLUTIONINFRASTRUCTURE INVESTMENTINTERMEDIATE GOODSINTERMEDIATE INPUTSIRONLABOR FORCELABOR MARKETSLABOR PRODUCTIVITYLABOR SUPPLYLEVELS OF EMISSIONSLIQUEFIED PETROLEUM GASMARGINAL ABATEMENTMARGINAL ABATEMENT COSTSMARGINAL COSTSMETALSMONETARY TERMSNATIONAL ACCOUNTSNATURAL CAPITALNATURAL GASNATURAL RESOURCESNITRATESNITROGENNITROGEN OXIDESNOXNUCLEAR ENERGYOILOIL EQUIVALENTOIL PRICEOIL PRODUCTSOILSPAPER PRODUCTSPARTICLESPARTICULATEPARTICULATE MATTERPERFORMANCE STANDARDSPETROLEUM PRODUCTSPM10POLICY INSTRUMENTSPOLICY MAKERSPOLICY SCENARIOSPOLLUTANT CONCENTRATIONSPOLLUTIONPOLLUTION CONTROLPOLLUTION REDUCTIONPOPULATION GROWTHPOWER GENERATIONPOWER PLANTSPOWER STATIONSPPPRICE CHANGESPRICE TAGPRICE VOLATILITYPRIVATE CONSUMPTIONPRODUCER PRICEPRODUCTION PROCESSESPRODUCTIVITY GROWTHPUBLIC GOODQUALITY STANDARDSRELATIVE PRICESRENEWABLE ENERGYRESEARCH AGENDARESOURCE ALLOCATIONRESOURCE CONSERVATIONRESOURCE ECONOMICSRESOURCE USERISK MANAGEMENTRIVER BASINSSCENARIOSSO2SOIL DEGRADATIONSOXSUGAR CANESULFATESSULFURSULFUR DIOXIDESULFUR EMISSIONSSUSTAINABLE GROWTHTAX RATESTECHNOLOGICAL CHANGETECHNOLOGICAL PROGRESSTOTAL EMISSIONSTRADEOFFSTRANSPORT SECTORUNCERTAINTIESURBAN AIR POLLUTIONWASTE DISPOSALWATER QUALITYWILLINGNESS TO PAYWOOD PRODUCTSWTPWorld Bank10.1596/1813-9450-6208