Final Examination

EPGP-404

Environmental Governance and Sustainability

Year 2021

Duration -2.30 hours Marks: 50 marks

Part A: Short Answer Questions

Answer ANY FOUR Questions -Each question will carry 5 marks.

Please give the answer to the question in NO MORE THAN 250 words.

1. Explain some of the important measures that corporate firms in India should initiate
in order to deal with the global warming problems?
2. Critically analyse the role of ‘public interest litigation’ (PIL) in improving the
environmental quality in India. How do we strengthen it?
3. Critically analyse the following statement: ‘There is a huge governance failure in the
area of pollution control in India’. What alternative governance mechanism would
you suggest?
4. How could local elites influence the outcomes of community-based management of
common pool resources?
5. Critically explain the definition and scope of the Environmental Kuznet Curve.
6. In the context of environment-poverty linkage, explain the difference between
livelihoods environmentalism and lifestyle environmentalism.
Part B: Essay Type Questions

Please give the answer to the question in NO MORE THAN 1000 WORDS.

Question 1. Most of water bodies in India experience depletion and degradation due to multiple
institutional failures. Explain how do you use the following instruments to manage the
water bodies in an efficient and sustainable manner? Use appropriate diagrams and
numerical examples.

1. Pigouvian Tax and Subsidy (10 marks)

2. Coasian Property Rights (5 marks)

(OR)

What are the various contextual conditions that defines the scope for achieving positive
outcomes through community based natural resource management? Mention a list of
Design Principles that contributes to successful collective action for management of
common pool resources. (8 marks +7 marks)

Question 2. “Payment for Ecosystem Services’ (PES) can effectively contribute to sustainable
management of environmental resources and bring in win-win outcomes for all
the stakeholders”. Critically analyze this statement by taking the case of water
scarcity (or Air Pollution) in India.(15 marks)

(OR)

“Groundwater deterioration and depletion is a result of governance failure. It is

also an outcome of mismatch of the nature of resource and the associated property
rights. Today India needs a plethora of mechanisms for strengthening
groundwater governance”. Critically reflect on the above statements. (15 marks)
**1. Corporate Measures for Global Warming in India:**
Corporate firms in India can take several crucial measures to address global warming:

a. **Adopting Renewable Energy:** Transitioning to renewable energy sources reduces carbon

emissions. Corporates can invest in solar and wind energy, aiming for sustainable and eco-friendly
operations.

b. **Energy Efficiency Practices:** Implementing energy-efficient technologies and practices in

manufacturing processes and operations helps reduce overall carbon footprint, contributing to
climate mitigation.

c. **Green Supply Chain Management:** Encouraging sustainable practices among suppliers and
promoting a green supply chain can lead to a significant reduction in the environmental impact of
the entire business ecosystem.

d. **Carbon Offsetting and Sequestration:** Corporates can engage in initiatives such as tree
planting or investing in carbon offset projects to compensate for their carbon emissions and enhance
carbon sequestration.

**2. Role and Strengthening of Public Interest Litigation (PIL) in India:**

Public interest litigation plays a vital role in improving environmental quality in India by providing
citizens with a legal avenue to address environmental issues. To strengthen it:

a. **Enhance Accessibility:** Simplify legal procedures and make PIL more accessible to the
public, especially marginalized communities, ensuring a broader reach for environmental justice.

b. **Strict Enforcement of Judgments:** Ensure rigorous enforcement of court judgments,

holding accountable entities responsible for environmental degradation. This can act as a deterrent
and promote compliance.

c. **Increased Public Awareness:** Promote awareness campaigns to educate the public about
their right to file PILs, empowering them to actively engage in environmental protection.

**3. Governance Failure in Pollution Control in India and Alternatives:**

There is a perceived governance failure in pollution control in India. To address this:

a. **Strengthen Regulatory Bodies:** Enhance the capacity and autonomy of environmental

regulatory bodies to enforce and monitor pollution control measures effectively.

b. **Implement Technological Solutions:** Integrate advanced technologies for real-time

monitoring and reporting of pollution levels, enabling quicker response and corrective actions.

c. **Community Participation:** Foster community involvement in monitoring and reporting

pollution, promoting a collaborative approach to environmental governance.
**4. Influence of Local Elites in Community-Based Management:**
Local elites can influence community-based management by controlling information flow,
dominating decision-making processes, and selectively benefiting from resource utilization. It is
crucial to ensure equitable participation and decision-making to prevent the exclusion of
marginalized groups.

**5. Environmental Kuznet Curve (EKC):**

The Environmental Kuznet Curve suggests an inverted U-shaped relationship between
environmental degradation and income. Initially, as income rises, environmental degradation
increases, but beyond a certain point, higher income correlates with improved environmental quality
due to increased awareness and investment in cleaner technologies.

**6. Livelihoods Environmentalism vs. Lifestyle Environmentalism:**

Livelihoods environmentalism focuses on sustainable practices that directly impact the livelihoods
of communities, emphasizing the connection between environmental conservation and poverty
alleviation. Lifestyle environmentalism involves individual choices, promoting eco-friendly
behaviors and consumption patterns without a direct focus on poverty alleviation.
**1. Pigouvian Tax and Subsidy for Water Management:**

**Pigouvian Tax:**
A Pigouvian tax is an economic instrument aimed at internalizing externalities by taxing activities
that generate negative external impacts. In the context of water management, a Pigouvian tax can
be applied to industries or agricultural practices that contribute to water pollution or excessive water
use. The goal is to discourage harmful activities and incentivize efficient water use.

**Diagram:**

**Numerical Example:**
Suppose an industrial unit releases pollutants into a river, causing water degradation. The
government imposes a Pigouvian tax of $5 per unit of pollution. If the unit initially releases 100
units of pollutants, the total tax incurred would be $500 (100 units * $5). This tax creates a financial
incentive for the industrial unit to reduce pollution to minimize costs.

**Pigouvian Subsidy:**
A Pigouvian subsidy, on the other hand, encourages positive externalities. In water management, it
could be applied to activities that enhance water quality, such as adopting sustainable farming
practices or implementing watershed management programs.

**Numerical Example:**
Consider a farmer implementing water conservation measures that reduce runoff and soil erosion,
positively impacting downstream water quality. The government provides a Pigouvian subsidy of
$3 for every unit of water saved. If the farmer saves 200 units of water, the subsidy would be $600
(200 units * $3), creating an incentive for sustainable water use.

**2. Coasian Property Rights for Water Management:**

Coasian Property Rights focus on assigning property rights to address externalities through
negotiation and voluntary agreements. In water management, this involves defining and trading
water rights to ensure efficient allocation.

**Numerical Example:**
Consider two farms situated along a river. Farm A has a higher marginal value of water for irrigation
than Farm B. Without property rights, water use might not be optimal. If property rights are
assigned, and Farm A values water at $10 per unit and Farm B at $8 per unit, they could negotiate
a voluntary exchange. If Farm A purchases water rights from Farm B at $9 per unit, both benefit
($10 - $9 for Farm A and $9 - $8 for Farm B), leading to a more efficient allocation.

In conclusion, these economic instruments provide mechanisms to manage water efficiently and
sustainably. Pigouvian taxes and subsidies incentivize responsible water use and pollution
reduction, while Coasian Property Rights enable negotiations for optimal water allocation among
users. These instruments contribute to overcoming institutional failures in water management.
**Contextual Conditions for Positive Outcomes in Community-Based Natural Resource
Management:**

1. **Local Governance Structures:**

Effective local governance structures that allow for inclusive decision-making and representation
of diverse community interests.

2. **Cultural and Social Cohesion:**

Strong cultural and social ties within the community foster a sense of collective identity and shared
responsibility for resource management.

3. **Clear Property Rights:**

Well-defined and enforceable property rights that establish who can access and use the common
pool resources, reducing the likelihood of conflicts.

4. **Economic Stability:**
Economic stability within the community, ensuring that members have the capacity to invest time
and resources in sustainable resource management.

5. **Access to Information:**
Availability of accurate and timely information about the status of the natural resources, enabling
informed decision-making by the community.

6. **External Support and Recognition:**

Support from external organizations, governments, or NGOs, providing resources, technical
assistance, and recognition for community-based initiatives.

7. **Secure Livelihoods:**
Community members having secure livelihood options beyond resource extraction, reducing
dependency on the common pool resources.

8. **Legal Framework:**
A supportive legal framework that recognizes and protects community rights over natural
resources, providing a basis for collective action.

**Design Principles for Successful Collective Action in Common Pool Resource Management:**

1. **Clearly Defined Boundaries:**

Clearly define the boundaries of the common pool resource to avoid ambiguity and prevent
external parties from encroaching.

2. **Congruence Between Rules and Local Conditions:**

Design rules that align with local socio-cultural norms and ecological conditions, ensuring they
are appropriate and accepted by the community.

3. **Collective Choice Arrangements:**

Involve the community in the decision-making process to ensure that rules and regulations are
collectively agreed upon and respected.

4. **Effective Monitoring:**
 Establish a system for monitoring resource use and adherence to rules, providing timely feedback
to the community to address potential issues.

5. **Graduated Sanctions:**
Implement a system of graduated sanctions for rule violations, starting with warnings and
escalating to more severe penalties if necessary.

6. **Conflict Resolution Mechanisms:**

Develop mechanisms for resolving conflicts within the community to address disputes and
maintain social cohesion.

7. **Local Autonomy:**
Allow for local autonomy in decision-making, empowering the community to adapt rules based
on changing circumstances and priorities.

8. **Nested Governance Structures:**

Integrate community-based management within larger governance structures, ensuring
coordination with higher-level authorities while maintaining local control.

9. **Social Capital Enhancement:**

Foster social capital through community-building activities, enhancing trust, reciprocity, and
cooperation among community members.

10. **Continuous Learning and Adaptation:**

Promote a culture of continuous learning and adaptation, allowing the community to adjust
management strategies based on feedback and changing conditions.

11. **Transparent Information Sharing:**

Ensure transparency in information sharing, facilitating open communication about resource
status, management practices, and community decisions.

These contextual conditions and design principles collectively contribute to the success of
community-based natural resource management by fostering cooperation, sustainable resource use,
and resilience in the face of environmental challenges.
**Critical Analysis of "Payment for Ecosystem Services" (PES) in the Context of Water
Scarcity (or Air Pollution) in India:**

**1. Positive Aspects:**

a. **Incentivizing Conservation Practices:**

PES provides financial incentives for landowners or communities to adopt conservation
practices that enhance ecosystem services related to water availability or air quality. For example,
farmers could be rewarded for implementing sustainable agricultural practices that reduce water
consumption or air pollutant emissions.

b. **Economic Valuation of Ecosystem Services:**

PES allows for the economic valuation of ecosystem services, making the value of
environmental resources explicit. This can lead to a better understanding of the importance of these
services and encourage their sustainable management.

c. **Stakeholder Collaboration:**
PES promotes collaboration between different stakeholders, such as government agencies, local
communities, and private entities. This collaborative approach can lead to more comprehensive and
effective strategies for addressing water scarcity or air pollution.

**2. Challenges and Criticisms:**

a. **Equity Concerns:**
PES programs may disproportionately benefit wealthier landowners or communities, leading to
inequitable outcomes. The challenge lies in ensuring that the benefits are distributed fairly and do
not exacerbate existing socio-economic disparities.

b. **Short-Term Focus:**
PES programs often have a short-term focus, with limited duration funding. This may not
provide long-term incentives for sustained conservation efforts, especially when compared to the
ongoing nature of environmental challenges like water scarcity and air pollution.

c. **Measurement and Monitoring Challenges:**

Measuring the direct impact of conservation efforts on ecosystem services and ensuring
compliance with agreed-upon practices can be challenging. Robust monitoring systems are essential
but can be resource-intensive.

d. **Market-Based Critiques:**
Critics argue that PES introduces market-based mechanisms to address environmental issues,
commodifying nature. This approach may not address the root causes of environmental problems,
such as over-extraction of water or industrial pollution.

**3. Case of Water Scarcity (or Air Pollution) in India:**

a. **Water Scarcity:**
In the case of water scarcity, PES could involve compensating farmers for adopting water-
efficient irrigation practices, reforestation projects to enhance groundwater recharge, or protecting
watersheds to maintain water quality. However, ensuring that smallholder farmers benefit and
addressing the complex interplay of competing water demands would be critical.
 b. **Air Pollution:**
For air pollution, PES could involve incentivizing industries to adopt cleaner technologies or
supporting initiatives that reduce vehicular emissions. However, challenges include establishing
clear metrics for air quality improvements, addressing point and non-point sources of pollution, and
involving diverse stakeholders in urban and rural areas.

**4. Recommendations:**

a. **Equitable Benefit Sharing:**

Implement measures to ensure that benefits from PES programs are distributed equitably, with
a focus on vulnerable and marginalized communities.

b. **Long-Term Commitments:**
Design PES programs with longer-term commitments to provide continuous incentives for
sustainable practices, acknowledging the persistent nature of environmental challenges.

c. **Integrated Policy Approach:**

Integrate PES into broader environmental policies, combining market-based approaches with
regulatory measures to address the structural causes of water scarcity or air pollution.

**Conclusion:**

While PES holds promise in contributing to sustainable environmental management, its

effectiveness depends on addressing equity concerns, ensuring long-term commitments, and
integrating with broader policy frameworks. In the context of water scarcity or air pollution in India,
a well-designed and carefully implemented PES program can bring win-win outcomes, but it should
be part of a comprehensive strategy that tackles the root causes of these environmental challenges.
**Critical Reflection on Groundwater Governance in India:**

**1. Governance Failure and Groundwater Depletion:**

a. **Lack of Regulation and Enforcement:**

Groundwater depletion in India often results from a governance failure characterized by
inadequate regulation and enforcement. Absence or weak implementation of rules allows excessive
extraction without considering the long-term sustainability of aquifers.

b. **Unsustainable Agricultural Practices:**

Agriculture, a major consumer of groundwater, often employs unsustainable practices due to a
lack of strict regulations. Inefficient irrigation methods, uncontrolled drilling, and unrestricted
access contribute to over-extraction.

c. **Limited Monitoring and Data:**

Governance failure is evident in the insufficient monitoring and data collection systems.
Incomplete knowledge about groundwater levels and quality hampers the formulation of effective
policies and interventions.

**2. Mismatch of Nature of Resource and Property Rights:**

a. **Open-Access Nature of Aquifers:**

Groundwater, often treated as a common-pool resource, suffers from the tragedy of the
commons. Without well-defined and enforceable property rights, individuals lack incentives to
manage groundwater sustainably, leading to over-exploitation.

b. **Inadequate Regulation of Private Wells:**

The proliferation of private wells without proper regulation contributes to the mismatch.
Unrestricted drilling and extraction worsen the tragedy of the commons, as individual users may not
consider the cumulative impact on the aquifer.

**3. Mechanisms for Strengthening Groundwater Governance:**

a. **Regulatory Reforms:**
Strengthening regulatory frameworks is crucial. This includes enforcing restrictions on drilling,
setting extraction limits based on aquifer capacity, and monitoring compliance. Implementing and
updating policies are essential for sustainable groundwater management.

b. **Community-Based Approaches:**
Introducing community-based management, where local communities are involved in decision-
making and monitoring, can enhance governance. This approach aligns with the principles of
collective action and encourages responsible use.

c. **Technological Solutions:**
Utilizing technology for real-time monitoring and data collection aids in informed decision-
making. Sensor networks and satellite technology can provide valuable insights into groundwater
dynamics, facilitating more precise governance measures.

d. **Economic Instruments:**
 Introducing economic instruments such as pricing mechanisms, taxes, or subsidies can influence
user behavior. For instance, a tiered pricing structure for agricultural water use can encourage
efficient practices and discourage excessive extraction.

e. **Legal Reforms:**
Strengthening and enforcing legal frameworks related to groundwater rights is essential. Clearly
defined and tradable water rights can encourage responsible use and provide a basis for conflict
resolution.

**4. Challenges and Considerations:**

a. **Equitable Access:**
Governance mechanisms should ensure equitable access to groundwater, especially for
marginalized communities. Balancing economic development with social equity is crucial.

b. **Behavioral Change:**
Overcoming entrenched practices and behaviors, especially in agriculture, requires awareness
campaigns, education, and incentives for adopting sustainable water-use practices.

c. **Inter-State and Inter-District Coordination:**

Groundwater governance often requires coordination across regions. Developing mechanisms
for inter-state and inter-district cooperation is essential, considering aquifers do not adhere to
administrative boundaries.

**Conclusion:**

Groundwater deterioration and depletion in India are indeed linked to governance failures and the
inherent challenges posed by the open-access nature of the resource. Strengthening groundwater
governance requires a multifaceted approach, combining regulatory reforms, community
engagement, technological solutions, economic instruments, and legal frameworks. Achieving
sustainable groundwater management demands a comprehensive and collaborative effort involving
government bodies, local communities, and other stakeholders to address the complex nature of the
challenge.