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GTAP Resource #3911

"Estimating economy-environment linkages of urban pollution mitigation in an economy-wide model for Indian"
by Sahin, Sebnem, Anil Markandya, Aarsi Sagar and Muthukumara Mani

The Indian economy is projected to grow at a rapid rate in the coming years, but this could come at the cost of a degraded environment, loss of livelihoods and poor quality of health for the vast majority of people. In light of this, it is important to project the main environmental impacts emanating from rapid economic growth for the next couple of decades and assess their environmental and economic consequences.
In this section, some of the tradeoffs between economic growth and environmental sustainability for India are analyzed. The tool used for this analysis is a modified version of the standard GTAP Computable general equilibrium model whihc was tailored for India in 2010.

The main environmental variable that has been included in the model is emissions of particulate matter of less than ten microns (PM10). These emissions are recognized as one of the most important in terms of their health effects . The standard GTAP model was expanded to include emissions from all the key sectors, including PM10 emissions originating from fuel use and production activities, thus making the CGE model more appropriate for linking the environmental health impacts of PM10 emissions with economic growth. In addition to PM10, the model also looks at the impacts of inadequate water supply and poor sanitation.

This is the first time that a CGE model has been developed for India keeping in view the “local” environmental implications of growth and the feedback effects . The open economy model incorporates links between 57 sectors — various sectors within agriculture, manufacturing and services — of the Indian economy as well as links between the economic output of these sectors and air pollution emissions, principally PM10.

In terms of the methodology, first, an economic growth scenario is developed, reflecting a path that the Indian economy could follow from 2005 through 2030. This refers to a purely "economic baseline" where the health impacts of the pollutants ar...

Resource Details (Export Citation) GTAP Keywords
Category: 2012 Conference Paper
Status: Published
By/In: Presented at the 15th Annual Conference on Global Economic Analysis, Geneva, Switzerland
Date: 2012
Created: Sahin, S. (4/30/2012)
Updated: Sahin, S. (6/7/2012)
Visits: 1,504
- Preferential trading arrangements
- Asia (East)
- Asia (Southeast)

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Special Instructions
The findings and conclusions in this paper are entirely those of the authors, this is a draft version of the analysis. They do not necessarily represent the views of the World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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