The Government of India introduced the Clean Environment Cess (CEC), to be levied on the total sa... more The Government of India introduced the Clean Environment Cess (CEC), to be levied on the total sales (including imports and exports) of all types of coal in India, in 2010 to reduce emissions and tackle climate change. This paper seeks to measure the impact of this cess on greenhouse gas (GHG) emissions and the gross domestic product (GDP) at both the sectoral and national levels. It examines these questions by modelling the impact of the CEC using a hybrid Energy Input–Output (EIO) framework. The EIO for India for 2015–16, published by the Centre for Social and Economic Progress (CSEP), is the major data source for this study. The rate of the CEC was Rs 200/tonne in 2015–16. It was increased to Rs 400/tonne in 2016–17. However, the actual collection rate of this levy was Rs 144/tonne and Rs 324/tonne, respectively. This increase of Rs 180/tonne in the actual tax levied resulted in around 0.09% reduction in the GDP, while emissions from coal and petroleum products reduced by only 1.06% and 0.23%, respectively. The sector most affected by this cess was the coal electricity sector, with a potential reduction of around 1.5% in its proportion of gross value added. This was followed by a 0.47–1.2% reduction in the proportion of gross value added of the coal and lignite, cement, crude petroleum, and iron and steel sectors. The reduction in emissions across sectors also followed the same order, as the decrease in output led to lesser emissions. Thus, the CEC alone is not a useful tool for meeting India’s climate change targets. However, a similar cess on the production of other high-emitting sectors—such as fertilisers, iron and steel, non-ferrous basic metals, paper and paper products, and textile and leather—may help.
This paper attempts to compare various forms of ecotaxes adopted by India and China in order to r... more This paper attempts to compare various forms of ecotaxes adopted by India and China in order to reduce their carbon emissions by 2020 and to address other environmental issues. The study contributes to the literature by giving a comprehensive definition of ecotaxes and using it to analyse the status of these taxes in India and China. As per OECD-EEA database’s definition, in total there are only twenty-four environmentally related taxes that exist in both the countries. Of these taxes, five out of seven environmentally related taxes in China were revised after the year 2006, and in India all the taxes were levied only after 2002. In addition, as per our definition only seven and five environmentally related taxes in India and China, respectively, can be deemed as ecotaxes. There is a severe paucity of literature on analysing the performance of ecotaxes. Based on the limited literature, it was found that there are several governance related issues in India in managing the funds gener...
Command and control policies have failed miserably in the Indian context in preserving the enviro... more Command and control policies have failed miserably in the Indian context in preserving the environment. Thus, this paper looks at the implications of preserving environment through fiscal instruments such as environmental taxes. This has been done by using an environmentally extended social accounting matrix (ESAM) framework to design and analyse the incidence of these taxes on rural and urban household groups. Ecotaxes were found to be progressive for both the regions at 5 and 10% tax rates. However, these taxes were regressive for one household category of the rural area which could be made progressive through a minimal proportion of revenue transfer generated from the levy of these taxes.
This article is an attempt to analyze the need for negotiations (if any) for India, in the sector... more This article is an attempt to analyze the need for negotiations (if any) for India, in the sector of ‘Enhanced Healthcare’ which is one of the 14 sectors in the Sectoral Negotiations (a component of Non Agricultural Market Access) of the ongoing Doha round. This is done by looking at various components of the Doha Round Sectoral Proposals specifically from India’s context. We have compared India’s competitiveness with the four countries, i.e., US; Singapore; Switzerland and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, which have proposed 25 product categories (i.e., 25 chapters in HS nomenclature) in this sector for free trade and hence are called as ‘the proponents’ of this sector. We have used two trade indicators, growth rate of exports and revealed comparative advantage, for analyzing the India’s relative competitiveness. Both the trade indicators show that India does have a comparative cost advantage to be one of key players in this sector. However, this opportunity has to be reaped judiciously by Indian government so as to make best use. Also, at same time the need of the hour is that the government should invest in this sector so as to meet the basic international standards and thereby helping not only the Indian populace but also the industry as a whole.
This article attempts to document the status of environmental fiscal instruments (EFIs) so as to ... more This article attempts to document the status of environmental fiscal instruments (EFIs) so as to explore relevant international experiences on ecotaxes in the context of India and to examine India’s specificities in these taxes within a wider perspective of other fiscal measures. Environmental levies across 15 countries were reviewed and the countries categorised are into two groups: Annex II and Non-Annex I. The revenues from levies imposed in the countries were also analysed. The most common form of taxes in Annex II countries in the form of energy taxes, followed by transport taxes. For India, energy and transport taxes could prove to be vital types of ecotaxes for addressing issues of climate change. Pollution taxes are difficult to levy for administrative reasons, but resource taxes are imperative because of severe environmental problems associated with mining and related activities. The revenue generated from environmental taxes and charges for all Annex II countries hovered b...
This article is an attempt to analyze the need for negotiations (if any) for India, in the sector... more This article is an attempt to analyze the need for negotiations (if any) for India, in the sector of ‘Enhanced Healthcare’ which is one of the 14 sectors in the Sectoral Negotiations (a component of Non Agricultural Market Access) of the ongoing Doha round. This is done by looking at various components of the Doha Round Sectoral Proposals specifically from India’s context. We have compared India’s competitiveness with the four countries, i.e., US; Singapore; Switzerland and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, which have proposed 25 product categories (i.e., 25 chapters in HS nomenclature) in this sector for free trade and hence are called as ‘the proponents’ of this sector. We have used two trade indicators, growth rate of exports and revealed comparative advantage, for analyzing the India’s relative competitiveness. Both the trade indicators show that India does have a comparative cost advantage to be one of key players in this sector. However, this opportunity has to be reaped judiciously by Indian government so as to make best use. Also, at same time the need of the hour is that the government should invest in this sector so as to meet the basic international standards and thereby helping not only the Indian populace but also the industry as a whole.
This article attempts to document the status of environmental fiscal instruments (EFIs) so as to ... more This article attempts to document the status of environmental fiscal instruments (EFIs) so as to explore relevant international experiences on ecotaxes in the context of India and to examine India's specificities in these taxes within a wider perspective of other fiscal measures. Environmental levies across 15 countries were reviewed and the countries categorised are into two groups: Annex II and Non-Annex I. The revenues from levies imposed in the countries were also analysed. The most common form of taxes in Annex II countries in the form of energy taxes, followed by transport taxes. For India, energy and transport taxes could prove to be vital types of ecotaxes for addressing issues of climate change. Pollution taxes are difficult to levy for administrative reasons, but resource taxes are imperative because of severe environmental problems associated with mining and related activities. The revenue generated from environmental taxes and charges for all Annex II countries hovered between 2 and 4 per cent of their respective GDPs, except for Canada and the United States of America, whereas for Non-Annex I nations, this ranged only between 0 and 1 per cent.
This paper attempts to compare various forms of ecotaxes adopted by India and China in ... more This paper attempts to compare various forms of ecotaxes adopted by India and China in order to reduce their carbon emissions by 2020 and to address other environmental issues. The study contributes to the literature by giving a comprehensive definition of ecotaxes and using it to analyse the status of these taxes in India and China. As per OECD-EEA database’s definition, in total there are only twenty-four environmentally related taxes that exist in both the countries. Of these taxes, five out of seven environmentally related taxes in China were revised after the year 2006, and in India all the taxes were levied only after 2002. In addition, as per our definition only seven and five environmentally related taxes in India and China, respectively, can be deemed as ecotaxes. There is a severe paucity of literature on analysing the performance of ecotaxes. Based on the limited literature, it was found that there are several governance related issues in India in managing the funds generated from the ecotaxes. In the case of China, studies reveal that the purpose of consumption tax is defeated as it leads to an increase in total fuel consumption and to a decline in social welfare.
The Government of India introduced the Clean Environment Cess (CEC), to be levied on the total sa... more The Government of India introduced the Clean Environment Cess (CEC), to be levied on the total sales (including imports and exports) of all types of coal in India, in 2010 to reduce emissions and tackle climate change. This paper seeks to measure the impact of this cess on greenhouse gas (GHG) emissions and the gross domestic product (GDP) at both the sectoral and national levels. It examines these questions by modelling the impact of the CEC using a hybrid Energy Input–Output (EIO) framework. The EIO for India for 2015–16, published by the Centre for Social and Economic Progress (CSEP), is the major data source for this study. The rate of the CEC was Rs 200/tonne in 2015–16. It was increased to Rs 400/tonne in 2016–17. However, the actual collection rate of this levy was Rs 144/tonne and Rs 324/tonne, respectively. This increase of Rs 180/tonne in the actual tax levied resulted in around 0.09% reduction in the GDP, while emissions from coal and petroleum products reduced by only 1.06% and 0.23%, respectively. The sector most affected by this cess was the coal electricity sector, with a potential reduction of around 1.5% in its proportion of gross value added. This was followed by a 0.47–1.2% reduction in the proportion of gross value added of the coal and lignite, cement, crude petroleum, and iron and steel sectors. The reduction in emissions across sectors also followed the same order, as the decrease in output led to lesser emissions. Thus, the CEC alone is not a useful tool for meeting India’s climate change targets. However, a similar cess on the production of other high-emitting sectors—such as fertilisers, iron and steel, non-ferrous basic metals, paper and paper products, and textile and leather—may help.
This paper attempts to compare various forms of ecotaxes adopted by India and China in order to r... more This paper attempts to compare various forms of ecotaxes adopted by India and China in order to reduce their carbon emissions by 2020 and to address other environmental issues. The study contributes to the literature by giving a comprehensive definition of ecotaxes and using it to analyse the status of these taxes in India and China. As per OECD-EEA database’s definition, in total there are only twenty-four environmentally related taxes that exist in both the countries. Of these taxes, five out of seven environmentally related taxes in China were revised after the year 2006, and in India all the taxes were levied only after 2002. In addition, as per our definition only seven and five environmentally related taxes in India and China, respectively, can be deemed as ecotaxes. There is a severe paucity of literature on analysing the performance of ecotaxes. Based on the limited literature, it was found that there are several governance related issues in India in managing the funds gener...
Command and control policies have failed miserably in the Indian context in preserving the enviro... more Command and control policies have failed miserably in the Indian context in preserving the environment. Thus, this paper looks at the implications of preserving environment through fiscal instruments such as environmental taxes. This has been done by using an environmentally extended social accounting matrix (ESAM) framework to design and analyse the incidence of these taxes on rural and urban household groups. Ecotaxes were found to be progressive for both the regions at 5 and 10% tax rates. However, these taxes were regressive for one household category of the rural area which could be made progressive through a minimal proportion of revenue transfer generated from the levy of these taxes.
This article is an attempt to analyze the need for negotiations (if any) for India, in the sector... more This article is an attempt to analyze the need for negotiations (if any) for India, in the sector of ‘Enhanced Healthcare’ which is one of the 14 sectors in the Sectoral Negotiations (a component of Non Agricultural Market Access) of the ongoing Doha round. This is done by looking at various components of the Doha Round Sectoral Proposals specifically from India’s context. We have compared India’s competitiveness with the four countries, i.e., US; Singapore; Switzerland and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, which have proposed 25 product categories (i.e., 25 chapters in HS nomenclature) in this sector for free trade and hence are called as ‘the proponents’ of this sector. We have used two trade indicators, growth rate of exports and revealed comparative advantage, for analyzing the India’s relative competitiveness. Both the trade indicators show that India does have a comparative cost advantage to be one of key players in this sector. However, this opportunity has to be reaped judiciously by Indian government so as to make best use. Also, at same time the need of the hour is that the government should invest in this sector so as to meet the basic international standards and thereby helping not only the Indian populace but also the industry as a whole.
This article attempts to document the status of environmental fiscal instruments (EFIs) so as to ... more This article attempts to document the status of environmental fiscal instruments (EFIs) so as to explore relevant international experiences on ecotaxes in the context of India and to examine India’s specificities in these taxes within a wider perspective of other fiscal measures. Environmental levies across 15 countries were reviewed and the countries categorised are into two groups: Annex II and Non-Annex I. The revenues from levies imposed in the countries were also analysed. The most common form of taxes in Annex II countries in the form of energy taxes, followed by transport taxes. For India, energy and transport taxes could prove to be vital types of ecotaxes for addressing issues of climate change. Pollution taxes are difficult to levy for administrative reasons, but resource taxes are imperative because of severe environmental problems associated with mining and related activities. The revenue generated from environmental taxes and charges for all Annex II countries hovered b...
This article is an attempt to analyze the need for negotiations (if any) for India, in the sector... more This article is an attempt to analyze the need for negotiations (if any) for India, in the sector of ‘Enhanced Healthcare’ which is one of the 14 sectors in the Sectoral Negotiations (a component of Non Agricultural Market Access) of the ongoing Doha round. This is done by looking at various components of the Doha Round Sectoral Proposals specifically from India’s context. We have compared India’s competitiveness with the four countries, i.e., US; Singapore; Switzerland and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, which have proposed 25 product categories (i.e., 25 chapters in HS nomenclature) in this sector for free trade and hence are called as ‘the proponents’ of this sector. We have used two trade indicators, growth rate of exports and revealed comparative advantage, for analyzing the India’s relative competitiveness. Both the trade indicators show that India does have a comparative cost advantage to be one of key players in this sector. However, this opportunity has to be reaped judiciously by Indian government so as to make best use. Also, at same time the need of the hour is that the government should invest in this sector so as to meet the basic international standards and thereby helping not only the Indian populace but also the industry as a whole.
This article attempts to document the status of environmental fiscal instruments (EFIs) so as to ... more This article attempts to document the status of environmental fiscal instruments (EFIs) so as to explore relevant international experiences on ecotaxes in the context of India and to examine India's specificities in these taxes within a wider perspective of other fiscal measures. Environmental levies across 15 countries were reviewed and the countries categorised are into two groups: Annex II and Non-Annex I. The revenues from levies imposed in the countries were also analysed. The most common form of taxes in Annex II countries in the form of energy taxes, followed by transport taxes. For India, energy and transport taxes could prove to be vital types of ecotaxes for addressing issues of climate change. Pollution taxes are difficult to levy for administrative reasons, but resource taxes are imperative because of severe environmental problems associated with mining and related activities. The revenue generated from environmental taxes and charges for all Annex II countries hovered between 2 and 4 per cent of their respective GDPs, except for Canada and the United States of America, whereas for Non-Annex I nations, this ranged only between 0 and 1 per cent.
This paper attempts to compare various forms of ecotaxes adopted by India and China in ... more This paper attempts to compare various forms of ecotaxes adopted by India and China in order to reduce their carbon emissions by 2020 and to address other environmental issues. The study contributes to the literature by giving a comprehensive definition of ecotaxes and using it to analyse the status of these taxes in India and China. As per OECD-EEA database’s definition, in total there are only twenty-four environmentally related taxes that exist in both the countries. Of these taxes, five out of seven environmentally related taxes in China were revised after the year 2006, and in India all the taxes were levied only after 2002. In addition, as per our definition only seven and five environmentally related taxes in India and China, respectively, can be deemed as ecotaxes. There is a severe paucity of literature on analysing the performance of ecotaxes. Based on the limited literature, it was found that there are several governance related issues in India in managing the funds generated from the ecotaxes. In the case of China, studies reveal that the purpose of consumption tax is defeated as it leads to an increase in total fuel consumption and to a decline in social welfare.
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