Reforming Energy Policy in India: Assessing the Options
Reforming Energy Policy in India
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Volume/Issue:
Volume 2017
Issue 103
Publication date: May 2017
ISBN: 9781475595734
$20.00
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Topics covered in this book
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Economics- Macroeconomics , Taxation - General , Environmental Economics , Environmental Conservation and Protection , Natural Resources , WP , price , firm , fuel price elasticity , average cost , net , rate , Air pollution deaths , revenues , Paris targets , welfare effects , incidence , India , coal tax , energy price reform , fuel price reform , economic welfare cost , fuel price responsiveness , supply cost , air pollution damage , Non-renewable resources , Greenhouse gas emissions , Carbon tax , Fuel prices , Global
Summary
Spreadsheet models are used to assess the environmental, fiscal, economic, and incidence effects of a wide range of options for reducing fossil fuel use in India. Among the most effective options is ramping up the existing coal tax. Annually increasing the tax by INR 150 ($2.25) per ton of coal from 2017 to 2030 avoids over 270,000 air pollution deaths, raises revenue of 1 percent of GDP in 2030, reduces CO2 emissions 12 percent, and generates net economic benefits of approximately 1 percent of GDP. The policy is mildly progressive and (at least initially) imposes a relatively modest cost burden on industries.
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