The diversity and complexity of concerns related to the environment and natural resources call for diverse ways to tackle these. There is adequate recognition in India of the need to experiment with multiple instruments to manage natural resources, rather than relying almost entirely on legislation, and enough evidence worldwide on the benefits of such an approach. Fiscal instruments are an important element of environmental policy in many countries. Their use in India has, however, received limited attention. This publication analyses fiscal policy options for dealing with select environmental and resource management concerns in the country, while also outlining some general lessons for moving on with environmental fiscal reform.
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