Environment and Development

Dr. P. M. Prasad

 Environmental Problems
Theory of Environmental
Policy
Environmental Policy in India

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

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

 Command and Control Regulation: Standards

Criteria for choosing among environmental
Policy Instruments

Environmental Effectiveness
Static Efficiency
Dynamic incentives
Flexibility
Monitoring and Enforcement
Equity; and
Acceptability

Bargaining Solutions: Coase theorem

Liability (Ex-post)
Information Programmes

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

 The UN Conference on Environment and

Development (Earth Summit), 1992 (Rio)
Agenda 21
Precautionary Principle (15)
Polluter Pays Principle (16)

The Earth Summit, 2002

Environment and Development in

India: Case Studies

Conclusion