Reforming Energy Policy in India : Assessing the Options

Author/Editor:

Ian W.H. Parry ; Victor Mylonas ; Nate Vernon

Publication Date:

May 3, 2017

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Spreadsheet models are used to assess the environmental, fiscal, economic, and incidence effects of a wide range of options for reducing fossil fuel use in India. Among the most effective options is ramping up the existing coal tax. Annually increasing the tax by INR 150 ($2.25) per ton of coal from 2017 to 2030 avoids over 270,000 air pollution deaths, raises revenue of 1 percent of GDP in 2030, reduces CO2 emissions 12 percent, and generates net economic benefits of approximately 1 percent of GDP. The policy is mildly progressive and (at least initially) imposes a relatively modest cost burden on industries.

Series:

Working Paper No. 17/103

Subject:

English

Publication Date:

May 3, 2017

ISBN/ISSN:

9781475595734/1018-5941

Stock No:

WPIEA2017103

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

51

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