Speaker : Dr. Barun Deb Pal (Institute for Social and Economic Change, Bangalore)
In this study I have followed a revenue recycling approach to assess economy wide impact of various fiscal instruments using the computable general equilibrium (CGE) model for Uganda and India. To implement these CGE models for Uganda and India I have extended the existing SAM of both of these countries with the resource recovery businesses. For Uganda two different policy scenarios have been developed. First, allow the compost recovery sector to collect waste collection fees from the urban households to adjust price of compost so as to incentivize farmers to purchase and apply compost nutrient for agriculture. Secondly government can play active role in collecting waste collection fees to finance subsidy on compost and waste-energy product. Results from this study show that, under the first scenario GDP is increasing more than the second case without keeping much scope for energy recovery sector to expand. Whereas in the second case GDP is not increasing much but both energy and nutrient recovery businesses are expanding to some extent. On the other hand, in case of India we have developed two different policy scenarios. First, government will provide subsidy on waste-energy and impose tax on fossil fuel used by the households. Secondly, subsidy on waste electricity and reduce subsidy on rural electricity consumption. Results show positive impact on market expansion of waste energy products without losing GDP. It is also observed form the result that the traditional biomass consumption and thermal electricity consumption by the households are reducing through substitution effect. Till date the concept of revenue recycling have been adopted by the CGE modelers as an option for carbon emission control and limited studies are available that takes into account similar approach for other environmental problem by incorporating waste recovery sectors. In this sense this study contributes additional knowledge to the academic society and policy makers in the context of environmental policy analysis.
Keywords: Environmental Policy Modeling, CGE analysis, Government Policy, Energy-Economy-Environment interactions, SAM
JEL Classification: C68, P28, O38, D57, D59