Environment and poverty in India: An Input-Output Approach*

In India, air pollution is restricted mostly to urban areas, where automobiles are the major contributors and to a few other areas with a concentration of industries and thermal power plants. The major pollutants are CO, SO2 and NOx. The major sources of air pollution in the country are industries (toxic gases), thermal power plants (fly ash and sulfur dioxide) and motor vehicles (carbon monoxide, lead, and particulate matter). Major polluting industries and automobiles emit tonnes of pollutant everyday thereby putting citizens to great health risks. Already Delhi has attained the dubious distinction of being the fourth most polluted city in the world. Among the 14 highly polluted cities in India Calcutta and Howrah scores the prominent position regarding annual concentration of SPM, SO2 and NOx. Incidence of poverty is high in India and about one third of the population is below poverty line that is largely affected by environmental hazards. How far the environmental hazards are caused by different income groups? Thus issue of environment and poverty is a matter of research. However, very little work has been done on this problem in India. The present paper concerns with this. The paper estimates the industrial emissions of CO2 SO2 and NOX in India and sources of change is investigated. In addition, it also examines the sources of change of CO2, SO2 and NOX in India generated by different income groups especially by the lower income groups. To carry out the study the paper uses input-output structural decomposition analysis (SDA). Extension of the model incorporating different income groups is done. The study covers the period of 80s and 90s. Findings and policy options are presented in the paper.