Environment and Development

Dr. P. M. Prasad

• Environmental Problems

• Theory of Environmental Policy

• Environmental Policy in India

Developed Countries Tried to Put Blame on Developing Countries inTerms

Population Growth and Poverty

Developing Countries Tried to Put Blame for Environmental DegradationOn Developed Countries

Because of Affluence or Energy Intensive Consumption Patterns

Theory of Environmental Policy• Externality Problem

• Market Based (Ex-ante) Instruments

– Emission Charges or Taxes

– Deposit-refund Systems

– Marketable or Tradable Emission Permits

– Output Taxes; and

– Performance Bonds and No-compliance Fees

– Reducing Government Subsidies

• Command and Control Regulation: Standards

• Criteria for choosing among environmental Policy Instruments– Environmental Effectiveness– Static Efficiency– Dynamic incentives– Flexibility

– Monitoring and Enforcement– Equity; and– Acceptability

• Bargaining Solutions: Coase theorem

• Liability (Ex-post)

• Information Programmes

Environmental Policy in India

• Introduction• UN Conference on Human Environment, 1972

– The Water Act of 1974 (Amendment, 1988)– The Constitution of India (42nd Amendment, 1976)– The Air Act of 1981 (Amendment, 1987)

• Bhopal Gas Tragedy, 1984– The Environmental Protection Act of 1986– The Environmental Protection Rules of 1986– The Product Liability Insurance Act of 1991

• The UN Conference on Environment and Development (Earth Summit), 1992 (Rio)– Agenda 21

– Precautionary Principle (15)– Polluter Pays Principle (16)

• The Earth Summit, 2002

Environment and Development in India: Case Studies

Conclusion