Controlling Pollution: Incentives and Regulations

The state of India’s environment has been deteriorating steadily over the past two decades. Ambient standards of air, water and soil pollution are routinely exceeded with potentially disastrous consequences. Recognising the seriousness of the problem, the Indian government has recently introduced a series of measures which concentrate on practical aspects of implementation. However, there are few studies available which can guide the formulation of policies in terms of the most appropriate choice of instruments which can contain pollution and protect India’s environment. That is the central purpose of this pioneering study–namely, to assess the efficacy of alternative instruments for pollution abatement based both on theoretical explorations and real-life case studies. The authors begin by reviewing the existing policy regime and analysing its impact on the quality of air and water in India’s cities and rivers respectively. They then proceed to assess the choice of instruments for pollution control by linking economic and environmental systems.