Environmental Sustainability and the Account of Genuine Wealth in India

In order to gauge the sustainability of the economic growth of nations, genuine savings rates are used as a ready comparable measure. Essentially it provides a measure of the sum of the change in various forms of capital, including manufactured, ecological (natural resource and pollution), human and knowledge capital. The depreciation in manufactured and natural capital during the economic growth process is deducted from the conventional national savings to measure genuine wealth. With increasing attention to global warming, the loss due to the increase in stock pollution of carbon emissions has also entered into the accounting exercise. However the damage from local flow and stock pollutants to human capital productivity has not got the same attention. This paper argues that in a developing country like India, where adverse human health impacts are known to be significant from local pollution and defensive expenditure is not forthcoming from the population at large, ignoring human productivity losses introduces a serious upward bias in the genuine wealth and savings measure especially with an increasing trend in emission of hazardous wastes. To this effect, it considers human capital as a function of both education and the stock pollutant in the Hamilton model that further raises the cost of pollutants. The paper suggests that, the depreciation in human capital may be taken as an increasing function of the local pollution generated in the system (following the current logic of using education expenditure as a proxy for enhancement in human capital). The attention to the local pollutants in the genuine wealth and savings measure would help focus developing country government policy on local pollution concurrently with their focus on global pollutants. The paper observes that current development of green accounting system in India is a step in the right direction, since it has attempted to account for health costs of pollution in some of the states.

Trade in environmental services: opportunities and constraints

The environmental services sector has been growing rapidly during the last two decades. Moreover, privatization and increasing outward-orientation of environmental services during the 1990s has made this sector an important service sector for negotiations under the new round of GATS.This study explores the nature and structure of the environmental services sector, both globally and in India, with particular focus on recent trends such as privatization and foreign investment in this sector. It also discusses issues of classification and definition which have occupied centre stage in the multilateral negotiations in this sector. The study assesses the implications of liberalizing environmental services in India, taking into account the country's strengths, weaknesses, and interests in this sector. Based on this assessment, it suggests a negotiating strategy for India in environmental services in the ongoing GATS 2000 negotiations. Given the special features of this sector, the study also suggests domestic reforms and regulations to ensure equity and sustainability along with economic efficiency in the provision of environmental services in India.

Examining tradeable permits with market power, banking and non-compliance: a finite period model

Our model examines how co-existence of market power and noncompliance affects the efficiency and effectiveness of a cap-and-trade system with banking-borrowing in a finite period model. The dynamic equilibrium analysis here extends the results of the established literature, and we show that the initial allocation of permits to the dominant firm continues to play a significant role in both the cost-efficiency of abatement, as well as effectiveness of the cap-and-trade system. The presence of cheating, however, makes the permit demand of firms more price-elastic compared to a model with no cheating. Moreover, the second-order price sensitivity of the permit demand of the dominant firm plays a critical role in the compliance behavior of the dominant firm. We analyze the relationship between violation of a fringe firm and the dominant firm, illustrating the asymmetrical implications for when the dominant firm is a buyer of permits versus a seller of permits. Since we expect the regulator to reduce initial permit allocations over time, we also examine its impact on non-compliance behavior of the dominant firm.Market power, price distortion, cap-and-trade emissions program, abatement efficiency, non-compliance

The Interface between economic development, health and environment in India: An econometric investigation.

This paper analyses interrelationships between `economic development', `health', and `environment' in a simultaneous equations framework. Four structural equations have been postulated to explain changes in four endogenous variables in terms of several predetermined variables. The endogenous variables chosen for the model are GDPPC (per capita gross domestic product), LE (life expectancy), NOCRD (number of cases of respiratory diseases) and PM10 (respirable suspended particulate matter). We assume that GDPPC describes economic development prominently and, therefore, use it as one of the endogenous variables in lieu of economic development. LE and NOCRD are assumed to reflect health effects in the economy, and PM10 is used as a proxy of environmental stress. The four endogenous variables are supposed to be jointly determined in terms of several exogenous variables represented through indices of physical infrastructure (PI), social infrastructure (SI) and air pollution index (API). We construct the three indices by the principal components method and thus effectively use only these three predetermined (exogenous) variables to simultaneously determine changes in the four endogenous variables listed above. The model is postulated in loglinear form and estimated by the two-stage least-squares method using data from the Indian economy 1980-81 to 2004-05. It follows from the estimated structural equations that while physical infrastructure is significant in determining GDPPC, the GDPPC is also directly influenced by improved health outcomes like longevity (LE) and lower morbidity from respiratory diseases (NOCRD). The long term health outcome (LE) is determined by the level of per capita GDP and it is positively affected by social infrastructure. The third structural equation shows that the immediate, or short run, health outcomes like morbidity from respiratory disorders are influenced by environmental stress (PM10) besides the level of GDPPC. Finally, the environmental stress (PM10) is determined by the level of per capita GDP and the air pollution index (API) representing various sources of air pollution. It is true that our simplified model illustrates the effects of specific type of air pollutant, viz., respirable particulate matter, however, it is among the most significant environmental problems threatening human health in India. Nevertheless, there is scope to build more comprehensive environmental stress indices which reflect surface water quality, ground water quality, soil pollution etc. which have feedback effects with health and economic development. Also many of the components of PI, SI and API may not be truly exogenous in a larger model (e.g. transport and communication in PI, education and health care systems in SI, and industrial production, vehicular traffic, urbanisation in API.) The two weaknesses of our model stem from data limitation and a concern to simplify the model. Although our model is highly simplified, nonetheless, it provides key insights into the nature of economic development in India during the last 25 years: First, the environmental stress has had a high cost on income and health . from the derived reduced form, a 1 percent increase in the air pollution index leads to a decrease of about 8 percent in the per capita income, a decrease of about 0.7 percent in the life expectancy, and an increase of about 19 percent in the number of cases of respiratory diseases. Second, the social infrastructure plays a more vital role in economic development, health, and environment than the physical infrastructure, since the absolute values of elasticities of endogenous variables with respect to SI are invariably greater than those with respect to PI. Although physical infrastructure is important for economic development, it comes in the last of our preference order. In the final run-up, there is need to pay more attention to provide better social infrastructure and to reduce air pollution.

Understanding Cross-National Trends in High-Tech Renewable Power Equipment Exports to the United States

We track US imports of advanced technology wind and solar power-generation equipment from a panel of countries during 1989-2010, and examine the determining factors including sector-specific US FDI outflow, country size, and domestic wind and solar power generation. Differentiating between the core high-tech and the balance of system equipment, we find US imports of the both categories have grown at significantly higher rate from the relatively poorer countries, particularly China and India. US FDI is found to play a significant positive role in the exports of high-tech equipment from both rich and poor countries, especially for the balance of system equipment. For the core wind and solar equipment, we find domestic renewable power generation played a significant positive role, and the effect is more pronounced for the rich countries as well as China compared to other poor countries.

Is India becoming a waste haven of metal scrap?

India is one of the largest importers of waste in the world with metallic scrap constituting the bulk of the waste imports. While relatively weak environmental standards in developing countries is often seen to be a key factor in the emergence of waste havens in cross-country studies, little attention has been given to examine the pattern of waste trade in a developing country over time. This paper analyzes factors determining metallic waste import in India from different source countries during 1996 through 2012. We empirically test the presence of waste haven effect in metallic scrap import by India after controlling for technology and home market demand. We find that the escalating domestic demand for metal and use of relatively labor-intensive technology are significant factors behind India’s import of metallic wastes from different source countries. We find no empirical evidence of waste haven effect

Is India becoming a waste haven of metal scrap?

India is one of the largest importers of waste in the world with metallic scrap constituting the bulk of the waste imports. While relatively weak environmental standards in developing countries is often seen to be a key factor in the emergence of waste havens in cross-country studies, little attention has been given to examine the pattern of waste trade in a developing country over time. This paper analyzes factors determining metallic waste import in India from different source countries during 1996 through 2012. We empirically test the presence of waste haven effect in metallic scrap import by India after controlling for technology and home market demand. We find that the escalating domestic demand for metal and use of relatively labor-intensive technology are significant factors behind India’s import of metallic wastes from different source countries. We find no empirical evidence of waste haven effect

Global, regional, and national sex-specific burden and control of the HIV epidemic, 1990-2019, for 204 countries and territories: the Global Burden of Diseases Study 2019

Background: The sustainable development goals (SDGs) aim to end HIV/AIDS as a public health threat by 2030. Understanding the current state of the HIV epidemic and its change over time is essential to this effort. This study assesses the current sex-specific HIV burden in 204 countries and territories and measures progress in the control of the epidemic. Methods: To estimate age-specific and sex-specific trends in 48 of 204 countries, we extended the Estimation and Projection Package Age-Sex Model to also implement the spectrum paediatric model. We used this model in cases where age and sex specific HIV-seroprevalence surveys and antenatal care-clinic sentinel surveillance data were available. For the remaining 156 of 204 locations, we developed a cohort-incidence bias adjustment to derive incidence as a function of cause-of-death data from vital registration systems. The incidence was input to a custom Spectrum model. To assess progress, we measured the percentage change in incident cases and deaths between 2010 and 2019 (threshold >75% decline), the ratio of incident cases to number of people living with HIV (incidence-to-prevalence ratio threshold <0·03), and the ratio of incident cases to deaths (incidence-to-mortality ratio threshold <1·0). Findings: In 2019, there were 36·8 million (95% uncertainty interval [UI] 35·1–38·9) people living with HIV worldwide. There were 0·84 males (95% UI 0·78–0·91) per female living with HIV in 2019, 0·99 male infections (0·91–1·10) for every female infection, and 1·02 male deaths (0·95–1·10) per female death. Global progress in incident cases and deaths between 2010 and 2019 was driven by sub-Saharan Africa (with a 28·52% decrease in incident cases, 95% UI 19·58–35·43, and a 39·66% decrease in deaths, 36·49–42·36). Elsewhere, the incidence remained stable or increased, whereas deaths generally decreased. In 2019, the global incidence-to-prevalence ratio was 0·05 (95% UI 0·05–0·06) and the global incidence-to-mortality ratio was 1·94 (1·76–2·12). No regions met suggested thresholds for progress. Interpretation: Sub-Saharan Africa had both the highest HIV burden and the greatest progress between 1990 and 2019. The number of incident cases and deaths in males and females approached parity in 2019, although there remained more females with HIV than males with HIV. Globally, the HIV epidemic is far from the UNAIDS benchmarks on progress metrics. Funding: The Bill & Melinda Gates Foundation, the National Institute of Mental Health of the US National Institutes of Health (NIH), and the National Institute on Aging of the NIH