Reforming Energy Policy in India

Assessing the Options

• Author(s): Ian W.H. Parry, Victor Mylonas, Nate Vernon,
• Publisher: International Monetary Fund
• Pages: 51
• ISBN_10: 1475595735
  ISBN_13: 9781475595734
  
• Language: en
• Categories: Nature / Natural Resources , Nature / Environmental Conservation & Protection , Business & Economics / Economics / Macroeconomics ,

Description:... 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.