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CREED Paper #11: Incentives for Eco-efficiency: Lessons from an Evaluation of Policy Alternatives - A Case Study of the Steel Sector in India

Author(s)Ritu Kumar
Co-Author(s)Nick Robins, A.K. Chaturvedi, R. Srinivasan, J. Gupta
Date1996-12-01
Theme(s)None
Method(s)None
Serie(s)Creed Working Papers

Summary

This paper is based on the results of a case study on market based instruments (MBIs) for pollution prevention for the steel sector in India. Four policy scenarios, combining command and control measure - ie discharge standards - with market based instruments such as pollution charges and intra-plant trades, are evaluated and ranked according to five criteria. Scenario rankings show that the performance of policy measures changes when qualitative assessments of administrative feasibility and public transparency are added to the more precise criteria of environmental efficiency, cost effectiveness and incentive provision. Assessments on the basis of the latter three give high grades to certain types of MBIs, whereas evaluations on political acceptability are not as favourable.

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