Using Economic Instruments to Fix the Liability of Polluters in India

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.

Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India

“…Command-and-control regulation prevailing for a long time is ineffective in controlling firms using cost-inefficient abatement technologies. However, carbon tax holds such culprit firms liable for their emissions (Das et al 2021).…”

“…India has been pricing 58.1% of the carbon emission from energy consumption since 2018, and the price has increased by EUR 14.33 since 2018and reached EUR 14.43 in 2021(OECD 2021. The carbon tax is an effective instrument as it helps minimize the abatement cost by encouraging firms to choose alternative, cleaner technologies (Das et al 2021). However, the research on India's carbon tax is sparse, and we have less evidence of its effectiveness in shifting to cleaner technologies (Bhat and Mishra 2020).…”