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Incidence of Environmental Taxes in India: Environmentally Extended Social Accounting Matrix-Based Analysis

  • Rajat Verma
  • Barun Deb Pal
Chapter
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

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.

Keywords

Environmental taxes Progressive taxes Environmentally extended SAM 

JEL Classification

H23 Q53 Q58 

Notes

Acknowledgement

We are grateful to the anonymous referees for their valuable suggestions on the paper and thankful to IORA for providing an opportunity to present the paper in their conference. We are also grateful to Gokhale Institute of Politics and Economics, Pune for organising the conference and we extend our gratitude to Prof. Kakali Mukhopadhyay for providing an opportunity to publish this paper in the edited book volume.

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Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.School of EconomicsNarsee Monjee Institute of Management StudiesBannerghatta, BengaluruIndia
  2. 2.IFPRI-South AsiaNew DelhiIndia

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