Using Economic Instruments to Fix the Liability of Polluters in India

Assessment of the Information Required and Identification of Gaps

Authors

  • Sukanya Das TERI School of Advanced Studies
  • MN Murty (formerly) Institute of Economic Growth
  • Kavita Sardana TERI School of Advanced Studies

DOI:

https://doi.org/10.37773/ees.v4i2.363

Keywords:

Ambient Standards; Taxes; Permits; Carbon Tax; Pollution.

Abstract

This review paper highlights the informational requirements for the effective use of environmental policy instruments to achieve ambient standards of pollution in India. A section on the Integrated Urban Air Pollution Assessment Model is attempted to identify data requirements for, and information gaps associated with, using these instruments. We review the available information and identify informational gaps that thwart the realization of ambient standards of environmental quality. In India, command-and-control instruments are arbitrarily used to assign liability without taking cognizance of economic estimates. The available cost–benefit estimates of air and water pollution, combined with air quality modelling for urban areas and water quality modelling, are essential inputs for using environmental policy instruments to ensure compliance with ambient standards. We discuss how to use economic estimates while designing and using economic instruments such as pollution taxes and pollution permits, in addition to command and control.

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Author Biographies

Sukanya Das, TERI School of Advanced Studies

Associate Professor, Department of Policy Studies, TERI School of Advanced Studies, Plot No. 10, Sankar Rd, Vasant Kunj Institutional Area, Vasant Kunj, Institutional Area, New Delhi, Delhi – 110070

MN Murty, (formerly) Institute of Economic Growth

Retired Professor, Institute of Economic Growth, University Enclave, North Delhi, Delhi – 110007

Kavita Sardana, TERI School of Advanced Studies

Assistant Professor, Department of Policy Studies, TERI School of Advanced Studies, Plot No. 10, Sankar Rd, Vasant Kunj Institutional Area, Vasant Kunj, Institutional Area, New Delhi, Delhi – 110070

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Additional Files

Published

2021-07-31