Designing Economic Instruments and Participatory Institutions for Environmental Management in India ,SANDEE Working Paper No. 48-10

Working Papers » Designing Economic Instruments and Participatory Institutions for Environmental Management in India

By : M. N. Murty

Abstract: This paper examines the possibility of using economic instruments, especially pollution taxes and bargaining approaches, as a means to encourage or improve people's participation in environmental management in India. It provides an intuitive description of methods for designing economic instruments and bargaining approaches. A case study describes the estimation of pollution taxes for controlling air pollution in thermal power generation in India. Another case study examining some bargaining methods that are already in force in India shows their usefulness in controlling industrial pollution.

Key Words: Pollution tax, Bargaining, Collective action, Transaction costs, Decentralized solutions, India

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