Environment and Development

1. Environment and Development

Dr. P. M. Prasad

2.

• Environmental Problems
• Theory of Environmental
Policy
• Environmental Policy in India

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Developed Countries Tried to Put Blame on Developing Countries in
Terms
Population Growth and Poverty
Developing Countries Tried to Put Blame for Environmental Degradation
On Developed Countries
Because of
Affluence or Energy Intensive Consumption Patterns

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16. 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

17.

• Command and Control Regulation: Standards
• Criteria for choosing among environmental
Policy Instruments
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Environmental Effectiveness
Static Efficiency
Dynamic incentives
Flexibility
Monitoring and Enforcement
Equity; and
Acceptability
• Bargaining Solutions: Coase theorem
• Liability (Ex-post)
• Information Programmes

18. 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

19.

• The UN Conference on Environment and
Development (Earth Summit), 1992 (Rio)
– Agenda 21
– Precautionary Principle (15)
– Polluter Pays Principle (16)
• The Earth Summit, 2002

20. Environment and Development in India: Case Studies

21. Conclusion