THE JOURNAL OF ENERGY AND DEVELOPMENT

Kakali Mukhopadhyay, Air Pollution and Household Income Distribution

in India: Pre- and Post-Reform (1983-1984 to 2006-2007),

Volume 35, Number 2

Copyright 2011

www.iceed.org

AIR POLLUTION AND HOUSEHOLD INCOME DISTRIBUTION IN INDIA: PRE- AND POSTREFORM (1983-1984 TO 2006-2007)
Kakali Mukhopadhyay*

ndia has been ranked as the seventh most environmentally hazardous country in the world by a new study released by researchers from Harvard, Princeton, Adelaide University, and the University of Singapore on January 12, 2011.1 A comprehensive environmental assessment of industrial clusters, undertaken by the Indian Institute of Technology, Delhi, and the Central Pollution Control Board in India found that the environmental pollution levels in 10 major industrial hubs had reached a very alarmingly high level.2
*Kakali Mukhopadhyay, Senior Research Associate at the Agricultural Economics Program under the Department of Natural Resource Science at McGill University, Montreal, Canada, earned her M.Phil. and Ph.D. in economics with a specialization in energy and environment from Jadavpur University, Calcutta, India. She has been a Post-Doctoral Research Fellow and subsequently a Visiting Assistant Professor at the Center for Development and Environmental Policy, Indian Institute of Management (Calcutta). Her research has focused on the integration of energy and environment, trade and environment, air pollution and health, and renewable energy using inputoutput and GTAP modeling. The authors international fellowships have been with the World Bank under the Environment Economic Overseas Fellowship Committee, the Asian Development Bank, the Indo-Dutch program, and the Ford Foundation. She has held visiting fellowships at the Faculty of Business Management, Oulu University (Finland); Stockholm Environment Institute (Sweden); the SOM Research School-Groningen University and MERIT-Maastricht University (the Netherlands); and the School of Environment, Resources and Development, Asian Institute of Technology (Thailand). Aside from articles in reviewed journals, Dr. Mukhopadhyay has authored or coauthored four volumes, including Air Pollution in India and Its Impact on the Health of Different Income Groups (New York: Nova Science Publishers Inc., 2009). This paper is based on a research project supported by the Indian Council of Social Science Research, New Delhi. The Journal of Energy and Development, Vol. 35, Nos. 1 and 2 Copyright 2011 by the International Research Center for Energy and Economic Development (ICEED). All rights reserved.

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Deterioration of air quality is a problem that is directly experienced by a majority of the 300 million urban Indians, who constitute about 30 percent of the nations population.3 Megacities of India are no exception to the global pattern of deteriorating urban air quality. Indian cities are among the most polluted in the world, with concentrations of a number of air pollutants being well above recommended World Health Organization (WHO) levels.4 Indias environmental problems are aggravated by its heavy reliance on coal for power generation. A significant amount of energy is produced from coal, a fuel that emits a high level of carbon and greenhouse gases. The main categories of urban air pollution sources in India are vehicular emissions, industrial emissions, fuel used for domestic purposes such as cooking, the burning of household wastes, and emissions from small businesses.5 Industries emit a wide variety of process-specific pollutants such as gaseous organic and inorganic compounds, complex vapors that undergo phase transformation after emission into the atmosphere, and particulate matter (PM) with process-specific composition (e.g., heavy metals and polycyclic aromatic hydrocarbons). Exposure of different income groups to outdoor air pollution in Indian cities is not well studied, primarily because of large gaps in data.6 These include insufficient locations for monitoring ambient PM10 (particulate matter of 10 micrometers or less) concentration levels. There is no PM2.5 (particles less than 2.5 micrometers in aerodynamic diameter) monitoring and concentration response functions for Indian populations. Moreover, there is a paucity of studies to identify pollution sources and assess effects on public health, for example, on morbidity treatment and the costs incurred by different income groups. According to an estimate by the World Resources Institute, nearly 1.4 billion urban residents in the world breathe air exceeding the WHO air quality guidelines.7 Exposure to air pollution is a major environmental health problem affecting developing and developed countries alike. It is well established that air quality in different cities may vary spatially and that pollution in a given city varies temporally. But what matters is the distribution of air quality within a large city. The air quality in a city could have a highly skewed distribution affecting some people more adversely than others.8 The pollutants like carbon dioxide (CO2), sulfur dioxide (SO2), and nitrogen oxides (NOX) are due mainly to the combustion of fossil fuels such as coal, crude oil, and natural gas used in different activities of an economy. Although the current fossil fuel consumption in developing countries is still half that of developed nations, it has been estimated that by the year 2020, if control measures are not implemented, more than 6.34 million deaths will occur in developing countries due to ambient concentrations of particulate air pollution.9 A survey by Indias Central Pollution Control Board has identified 23 Indian cities to be critically polluted with air pollution levels exceeding WHO

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recommended health standards.10 In every urban center, the levels are getting worse because of accelerating industrialization, the growing number of vehicles, increasing energy consumption, and the burning of wastes. Several cities face severe air pollution problems, with annual average levels of total suspended particulates at least three times as high as the WHO standards.11 The WHO annual mean guidelines for air quality standards are 90 micrograms per cubic meter for total suspended particulates and 50 for sulfur dioxide and nitrogen dioxide.12 The total urban air pollution of SO2 and NOX from major cities in India are 300 micrograms per cubic meter and 250 microgram per cubic meter, respectively, during 2004.13 Apart from industry, households are a major consumer of energy and contribute, to a large extent, to the total energy use of a nation. By the late 1990s, the share of direct energy use of households in India was about 40 percent and this number climbs to 70 percent, if one takes into account the indirect or embodied energy in all goods and services purchased by households.14 The distribution of population with regard to energy consumption also shows that over 60 percent have a per-capita total household energy requirement of less than 0.5 kilowatt (kW) per year.15 In addition to the wide disparities in the quantities of energy used, there are large variations in the types of energy used and patterns of consumption among households. The pattern of household energy consumption represents the status of welfare as well as the stage of economic development. As the economy develops, generally more and cleaner types of energy are consumed. Moreover, the household energy consumption pattern is likely to vary with income distribution and it changes over time. Household energy consumption is expected to increase in the future along with growth in the economy, a rise in per-capita income, and changes in life-styles.16 Indian economic growth has accelerated under the introduction of economic liberalization policies that began in the early 1990s, and the economy continues to show an impressive growth rate well into the following 10 years. Indias annual gross domestic product (GDP) growth was about 4 percent in the early 1990s, rose to approximately 7 percent for the rest of the decade, and grew at a striking rate of more than 7 percent in the 2000s. The manufacturing sector has shown a significant improvement in performance. Its average growth rate was about 8.9 percent during the 1990s, which is slightly higher than that experienced in the previous decade (6.8 percent per year during the period from 1981 to 1991). The performance spreads over virtually all aspects of the economy. Together with the countrys impressive growth, India also has become a significant consumer of energy resources. Accordingly, primary energy consumption has risen rapidly. To accelerate the economys upward growth path, the government of India has initiated new strategies for the energy sector in line with the economic reform in the mid-1990s.17

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However, one cannot ignore the fact that even after reforms, the incidence of poverty is still high in India and about one-third of the population lives below the poverty linea group that is largely affected by and exposed to environmental hazards. Given this background, an attempt should be made to estimate the generation of air pollution from fossil fuel combustion and the contribution to this by different income groups in India during the pre-reform and reform period. This study aims to address these issues. The objectives of the paper are to estimate the emissions of CO2, SO2, and NOX from various sectors of the economy in India during the span 1983-1984 to 20062007. It investigates the factors behind the changes in emissions of CO2, SO2, and NOX using input-output structural decomposition analysis (SDA) during this period. Finally, this work will calculate the contribution made by the different household income categories to emissions for the time frames under study. The remainder of the paper is structured as follows. We begin with a brief review of the literature on air pollution and its impacts at the national and international levels. This is followed by the presentation of the model, which has been calibrated to estimate the industrial emissions of CO2, SO2, and NOX in India along with the factors responsible for changes in emission levels. Thereafter, sources of data used and the processing are presented. In the subsequent section, we report the detailed empirical findings on changes in emissions from 1983-1984 to 2006-2007. The contribution of emissions made by different household income categories also is discussed and conclusions are offered.

Review of Literature Literature on the estimation of emissions, particularly in a country framework, is extensive. A brief discussion is attempted here focusing on developed and developing countries, including India. However, we do not find much research covering the contribution to air pollution by different household income groups. Among the many studies dealing with emissions in developed countries are N. J. Peet et al. for New Zealand; C. Weber and U. Fahl for Germany; K. Vringer and K. Bloks article and H. C. Wiltings doctoral dissertation for the case of the Netherlands; M. Lenzen for Australia; and J. Munksgaard et al. and M. Wier et al. for Denmark.18 M. Wier et al. identified the household characteristics with a significant influence on carbon dioxide emissions.19 Comparing their results with those of other studies, they state that national differences in climate and population density cause differences in the contribution to CO2 emissions. Moreover, national differences in income and expenditure elasticities of both energy and carbon dioxide are due to differences in the disparity in CO2 intensities among commodities. Further, the models assumptions of foreign technology are also important for the findings.

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J. Munksgaard et al. trace the environmental impacts of consumption in Denmark.20 The study measures the emissions of carbon dioxide at different spatial levelsnation, city, and householdby introducing the concept of environmental efficiency combining input-output modeling and data envelopment analysis. The policy relevance of the different measures also was discussed in the paper. Highlighting a few of the studies on emissions and developing countries are the works of S. Chaudhuri and A. Pfaff, R. Carlos and C. Dakilla, and L. Jiang and B. ONeill.21 R. Carlos and C. Dakila determine the impact of household consumption expenditures on the environment in Manila.22 The study shows that the households actual consumption made a considerably high contribution to total environmental damage, which can be attributed to this sectors high emission coefficients for environmental residuals. They also suggested effective environmental policies. S. Chaudhuri and A. Pfaff predict the N-shaped relationships between income and environmental degradation in fuels choice and analogous abatement settings for developing countries.23 Pollution will rise, later fall, but then increase again as income continues to rise. L. Jiang and B. ONeill estimate the impacts of economic growth, population, compositional changes on residential energy consumption, and its environmental consequences in China.24 The authors capture the importance of urbanization in the energy transition from biomass to modern fuel by statistically analyzing Chinese rural and urban household energy consumption. Combining the population and household projection results, they simulate the impacts of household compositional changes and urbanization on future residential energy consumption under different socioeconomic and demographic scenarios. For India, researchers at the Indira Gandhi Institute of Developmental Research carried out in-depth studies using input-output analysis and aggregated household expenditure survey data to calculate the CO2 emissions from energy consumption for different groups of households for the year 1989-1990.25 S. Pachauri, using micro level household survey data from India, analyzes the variation in the pattern and quantum of household energy requirements, both direct and indirect, and the factors causing such variation.26 An econometric analysis based on household survey data from India for the year 1993-1994 reveals that household socioeconomic, demographic, geographic, family, and dwelling attributes influence the total household energy requirements. There also are large variations in the pattern of energy requirements across households belonging to different expenditure classes. Results show that total household expenditure or income level is the most important explanatory variable causing variation in energy requirements across households. In addition, the size of the household dwelling and the age of the head of the household are related to higher household energy requirements. In contrast, the number of members in the household and literacy of the head are associated with lower household energy requirements.

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The paper by B. Reddy analyzes the dynamics of energy end use in the household sector in India.27 The energy consumption is disaggregated according to social class (employment characteristics, access to resources) and income group for rural as well as urban households. It is observed that large variations in energy use exist across different sections of householdsurban/rural, low/high income groups. The paper evaluates the energy-poverty nexus, impacts of household energy consumption on livelihood, and gender issues. Also discussed are the positive effects of innovation in energy efficiency and the required policies and specific proposals for government intervention to achieve the potential for energy efficiency. There are some other works for India that deserve to be discussed. P. Sikdar and S. Mondal suggested that an air quality management on reducing stationary source and mobile source emissions will help to mitigate the air pollution and improve the quality of life.28 V. Kathuria and N. Khan have attempted to find out the evidence of environmental inequity, i.e., whether there is any divergence in the households exposure to air pollution (small particulate matter) on account of differences in their socioeconomic characteristics in Delhi, India.29 The econometric analysis suggests that the economically backward communities are the most affected by the exposure to air pollution on average. The effect is quite pronounced when they are staying in industrial areas. However, the research could not find any evidence of environmental inequity due to religion, and the evidence was weak for the communities that are considered socially backward. Education acts as a defense against environmental exposure when that exposure crosses a threshold level. The analysis of residential and industrial areas suggests that exposure to air pollution is dependent on the location of residence in addition to socioeconomic status. In his recent study, A. Garg looks at the human health impacts from urban air pollution in India.30 It shows that major PM10 emission sources are owned by the higher income groups and the economic benefits also accrue to them, while the poor carry a disproportionately higher share of the resultant air pollution health burden. Such pollution is especially harmful to poor people. So the co-benefits from global climate change policies in terms of reduced local air pollution can have positive equity impacts. Health impacts (mortality and morbidity) of PM10 pollution are quantified for different socioeconomic groups in Delhi. The spatial PM10 concentration levels are overlaid with spatial socioeconomic data. Improvement in air quality would result in bigger health benefits for the poor. Most measures that reduce PM10 pollutants also reduce carbon dioxide emissions while simultaneously imposing higher costs on the more affluent. The studies above attempted to focus on household energy consumption from a developing country perspective. But studying the generation of pollution, particularly by different income class, and the responsible factors in the Indian economy utilizing input-output methodology is rare in the academic literature. Thus, we will concentrate on this issue here.

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The present study develops the model based on the input-output structural decomposition approach for the estimation of pollutants emission (CO2, SO2, and NOX) and factors responsible for changes in emission levels. The model is further extended to incorporate different income groups.
Model 1: Model 1 starts with the basic concepts of the input-output framework

of W. Leontief.31 Mathematically, the structure of the input-output model can be expressed as: X = Ax + Y : The solution of equation (1) gives
1 X = ( I A) Y

where (I A)1 is the matrix of total input requirements. For an energy input-output model, the monetary flows in the energy rows in equation (2) are replaced with the physical flows of energy to construct the energy flows accounting identity, which conforms to the energy balance condition. We apply a hybrid method based on R. Miller and P. Blair, and it always conforms to energy conservation conditions.32 On the basis of the above estimated figure we calculate the direct carbon dioxide, sulfur dioxide, and nitrogen oxide emission coefficient and total (direct and indirect) CO2, SO2, and NOX emission coefficient. Let C = C ( j ) **

It is a vector of fossil fuel emission coefficients representing the volume of CO2, SO2, and NOX emissions per unit of output in different sectors, that is, when the sectoral volume of CO2, SO2, and NOX emission is divided by sectoral output it then gives us the direct CO2, SO2, and NOX emission coefficient. The direct and indirect carbon, sulfur, and nitrogen emission coefficient of sector j can be defined as Cjrij, where rij is the (i,j)th element of the matrix (IA)1. The direct and indirect CO2, SO2, and NOX of a sector is defined as emissions caused by the production vector needed to support final demand in that sector. This would depend not only on the direct and indirect emission coefficient of that sector but also on the level of sectoral final demand. Emission Model: Now in equation form, CO2, SO2, and NOX emissions from fossil fuel combustion can be calculated from industrial fuel data in the following manner: F = CtL1 X = CtL1 ( I A )
1

Y:

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Here, F represents a vector, giving the total quantity of CO2, SO2, and NOX emissions from fossil fuel combustion only; C as a vector of dimension m (mx1), of coefficients for CO2, SO2, and NOX emissions per unit of fossil fuel burned; L1 is a matrix (mxn) of the industrial consumption in energy units of m types of fuel per unit of total output of n industries; and subscript t denotes the transpose of this vector. In equation (3), CtL1= S carries only direct requirement of CO2, SO2, and NOX intensities from industries and CtL1(I A)1 gives the direct as well as indirect requirement of CO2, SO2, and NOX intensities from industries. So equation (3) explains the CO2, SO2, and NOX emissions due to fossil fuel combustion in India from production activities. Structural Decomposition Analysis: Next, we develop a structural decomposition analysis (SDA) for this model to estimate the changes in emission in each period as well as to capture the responsible factors for such changes in emission.33 The total industrial CO2, SO2, and NOX emissions (TE) can be expressed as: TE = DF = SRY = S ( I A) Y
1

where R = (I A)1. In the above equation, S represents the industrial CO2, SO2, and NOX intensity. According to the structural decomposition analysis method, the change in total CO2, SO2, and NOX emissions between any two years, i.e., year o and year t, can be identified as: TE = DF = St ( I At ) = St Rt Yt So Ro Yo = St Rt Yt So Rt Yt + So Rt Yt So Ro Yo = DSRt Yt + So Rt Yt So Ro Yo = DSRt Yt + So Rt Yt So Ro Yt + So Ro Yt So Ro Yo = DSRt Yt + So DRYt + So Ro Yt So Ro Yo = DSRt Yt + So DRYt + So Ro DY :
1

Yt So ( I Ao )

Yo

5 6 7 8 9 10 11

The first term of equation (11) reflects the CO2, SO2, and NOX emission changes due to the changes of CO2, SO2, and NOX intensity of various industries. The second term of that equation defines the CO2, SO2, and NOX emission changes due to the changes in the technical coefficient matrix. The third term of equation (11) refers to the CO2, SO2, and NOX emission changes due to the changes in the final demand of various industries. Here t refers to the current

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period and o defines the previous period. Only fuel NOX has been considered. Thermal NOX has not been taken into consideration.
Model 2Extension of the Model Incorporating Different Income Groups: To

calculate the contribution of the above emission changes contributed by the different income groups, the previous model has been extended accordingly.34 The final demand vector Y has been treated separately by breaking the total final demand as: Y = Y1 + Y2 where Y1 = Cl + Cm + Ch Y2 = Y2 : 13 12

The term Cl carries the vector of household consumption belonging to lowerincome groups; Cm defines the vector of household consumption belonging to middle-income groups; Ch implies the vector of household consumption belonging to higher-income groups; and the term Y2 signifies the vector of other final demand components such as government consumption, change in stock, investment, export, and import. Now, if we introduce equations (12) and (13) into equation (11), then it ultimately forms the following equation: = DSRt ( Clt + Cmt + Cht + Y2 t ) + So DR( Clt + Cmt + Cht + Y2 t ) + So Ro D( Cl + Cm + Ch + Y2 ): 14

The first term of equation (14), i.e., (14a), reflects the changes in intensity of CO2, SO2, and NOX term by considering the different final demand groups. = DSRt Clt + DSRt Cmt + DSRt Cht + DSRt Y2 t 14a

Likewise, the second term of equation (14), i.e., (14b), covers the changes in technical coefficient of CO2, SO2, and NOX term by considering the different final demand groups. = So DR Clt + So DR Cmt + So DR Cht + So DRY2 t 14b

Finally, the third term of equation (14) reflects the changes in the final demand of CO2, SO2, and NOX term by considering the different final demand groups. = So Ro DCl + So Ro DCm + So Ro DCh + So Ro DY2 14c

Each income groups specific and rest of the final demands contribution for CO2, SO2, and NOX emissions can be determined from equations (14a), (14b), and

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(14c). By this categorization, we can estimate the degree of responsiveness of the responsible factors for all emissions among each income group in a special form. L = DSRt Clt + So DR Clt + So Ro D Cl M = DSRt Cmt + So DR Cmt + So Ro D Cm H = DSRt Cht + So DR Cht + So Ro D Ch Y2 = DS Rt Y2 t + So DRY2 t + So Ro D Y2 15a 15b 15c 15d

Equations (15a), (15b), (15c), and (15d) combine the total responsible factors effect for each income group.

Data Sources and Processing To implement the model and conduct the structural decomposition analysis of energy consumption changes among different income groups, we require input-output data, price indices, energy flow data and emission data (the Intergovernmental Panel on Climate Change guidelines), and consumption expenditures of different commodities for different expenditure classes.35
Aggregation of the Input-Output Table: Input-output tables of the Indian economy for the years 1983-1984, 1993-1994, and 2006-2007 prepared by the Central Statistical Organization of the Indian government are employed in this study.36 Input-output tables are commodity-by-commodity tables consisting of 115x115 sectors for the years 1983-1984 and 1993-1994 while the year 2006-2007 consists of 130x130 sectors. These have been aggregated to 47 sectors on the basis of the nature of commodities and energy intensiveness. Price Indices: We use 1993-1994 as a base year and adjust 1983-1984, 19931994, and 2006-2007 tables to 1993-1994 prices using suitable price indices available from the National Accounts Statistics. Energy Data: We convert the monetary units of the energy sectors into physical unit from the energy data published by the Center for Monitoring the Indian Economy (for the years 1991 and 1998) and the Central Statistical Organizations 2009 report.37 The following energy sectors, encompassing coal (measured as million tons), crude petroleum (measured in million tons), natural gas (measured in million cubic meters), and electricity (measured in terawatt- hours), have been converted into one common unit, which is million tons of oil equivalent (toe). For estimation of CO2, SO2, and NOX emission we have used the Intergovernmental Panel on Climate Change guidelines.

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Data on Consumer Expenditure: The National Sample Survey Organization (NSSO) data for 38th round (1983-1984), 50th round (1993-1994), and 60th round (2003-2004) have been collected from the NSSO Office, New Delhi, which were in the .dat format, and converted to the required format using SPSS 10.0. The 60th round data of consumer expenditure has been used for the period 2006-2007. NSSO data sets have been arranged in terms of item code, expenditure on those items, and then monthly per-capita consumption expenditure (MPCE). Data are arranged and sorted according to different expenditure class, which are further segregated in terms of different expenditure class MPCE for lower-income group (LIG), middle-income group (MIG), and higher-income group (HIG).38 This classification has been made for the year 1993-1994. Due to changes in prices, the size of the income group will change for the year 1983-1984 and 2003-2004. So the income group classifications at 1993-1994 prices are as follows: Rupees (Rs) 0-6,000 are classified as lower-income groups, middle-income groups leveled as Rs. 6,000-12,000, and Rs. 12,000 and above belong to upper-income groups. Thus, we have computed expenditure data from the available data set and then we segregated the expenditure data according to the three income groups. These shares are used to allocate the sectoral private consumption expenditure recorded in the input-output table among the three income groups.

Model Estimation and Analysis of Results

Results Based on Model 1: Let us look at the emission level of CO2, SO2, and

NOX according to our model. Aggregated hybrid inputoutput tables for the years 1983-1984, 1993-1994, and 2006-2007 have been used to compute direct and total emission coefficient using the equation (**) given earlier. The period 1983-1984 to 1993-1994 has been considered as the pre-reform period, while 1993-1994 to 2006-2007 represents the reform span. Total Emissions: The total industrial CO2, SO2, and NOX emissions (TE) have been calculated using the input-output data for the respective years. Total emissions for the three air pollutants were computed using equation (4) of the model. It is evident from table 1 that there is an increasing emission trend of all these three pollution indicators over the period; all have increased by more than 300 percent in the 23-year period of our study (1983-1984 to 2006-2007). The annual growth of air pollution is higher during the second period compared to the first period for the three emissions, with the growth rate of SO2 higher than that of CO2 and NOX.
Sector-Specific Intensity of CO2, SO2, and NOX during 1983-1984, 1993-1994, and 2006-2007: The overall sector-specific direct and total requirement of CO2, SO2,

and NOX is very high for the energy sectors such as coal and lignite, crude

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THE JOURNAL OF ENERGY AND DEVELOPMENT Table 1

INDIA: TOTAL EMISSIONS OF CARBON DIOXIDE (CO2), SULFUR DIOXIDE (SO2), AND NITROGEN OXIDE (NOX) FROM 1983-1984 TO 2006-2007 (in million tons of CO2, SO2, and NOX) Total Emissions Years 1983-1984 1993-1994 2006-2007 CO2 306.88 573.29 1,322.26 SO2 2.69 5.63 17.68 NOX 4.98 9.91 22.45

petroleum and natural gas, and electricity. Within these three energy sectors, the electricity sector has the highest total and direct intensity of CO2, SO2, and NOX. The electricity sector mainly utilizes coal. Thus, if the grade of coal is higher in quality, it will release less amounts of carbon dioxide and, subsequently, the CO2 intensity coefficient of that particular sector will be lower. The current study shows an increase in carbon dioxide intensity originates from the electricity sector. Figure 1 measures the intensity of CO2 from coal and crude petroleum and natural gas. The intensity with respect to coal increased from 1983-1984 to 19931994, but sharply declined after the reform period (1993-1994 to 2006-2007). The crude oil intensity behaves differently. A marginal increase is observed prior to reforms (1983-1984 to 1993-1994), while a drastic increase has been seen for the period 1993-1994 to 2006-2007 (figure 1). This is partly due to the changes in consumption of coal and crude petroleum and natural gas in the Indian economy during pre-reform and reform periods. We find that the total CO2 intensity from the electricity sector is rising steadily throughout the study period (figure 2). Among other energy-intensive sectors, the CO2 intensity of the transport sector varies throughout the time frame but that of cement was reduced. This occurred in conjunction with the installation of relatively expensive new technologies such as pre-calcining facilities, high efficiency roller mills, and variable speed motor. High efficiency and improved technology actually lead to lower intensity levels of Table 2
INDIA: ANNUAL GROWTH RATES OF EMISSIONS FROM 1983-1984 TO 2006-2007 (in percent) Years 1983-1984 to 1993-1994 1993-1994 to 2006-2007 1983-1984 to 2006-2007 CO2 8.68 13.06 14.38 SO2 10.93 21.40 24.23 NOX 9.90 12.65 15.25

INDIA: AIR POLLUTION & HOUSEHOLD INCOME Figure 1

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INDIA: TOTAL INTENSITY OF CARBON DIOXIDE IN COAL AND CRUDE PETROLEUM AND NATURAL GAS, 1983-1984, 1993-1994, AND 2006-2007

CO2 emissions. The direct intensity of the construction sector is lowest among all evaluated sectors. This is because it does not utilize much fossil-fuel-based energy to construct a building or a road, but the construction sector uses many energyintensive materials such as bricks, cement, iron, steel, aluminum, glass, and asbestos. So the indirect portion achieves prominence in this respect, leading to a high value of total intensity. The above fact suggests that sectors like construction, textile, agriculture, and transport emit carbon dioxide at fairly high levels due to indirect effects. Given the higher value of the indirect coefficient and the larger volume of activity, the production of the above sectors turns out to be those most responsible for carbon dioxide emissions in India when they are viewed in terms of total (direct and indirect) emissions due to final demand in each sector. The direct SO2 emission coefficients were higher generally for sectors such as petroleum products, electricity, chemical and chemical products, basic metals, metal products and machinery, and trade and other services, but it varies between periods. The direct NOX emission coefficient of the three energy sectorscoal, crude petroleum and natural gas, and electricityis relatively high compared to the other sectors of the economy. With the exception of iron and steel, most of the sectors have reduced their intensity levels.
Results Based on Structural Decomposition Analysis: The total changes in estimated CO2, SO2, and NOX emissions from 1983-1984 to 2006-2007 have been

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INDIA: TOTAL INTENSITY OF CARBON DIOXIDE IN ELECTRICITY, 1983-1984, 1993-1994, AND 2006-2007

decomposed into effects caused by three componentsthe emission intensity (S), the technical coefficient (R), and the final demand (Y)following equation (11) presented previously.39 SDA for 1983-1984 to 1993-1994 and 1993-1994 to 2006-2007: The results of the structural decomposition analysis are shown in table 3. The first term of the equation (11), i.e., DS Rt Yt,, reflects the CO2, SO2, and NOX emission changes due to the changes of CO2, SO2, and NOX intensity of various industries. The values are represented by column 4 of table 3. The second term of equation (11), So DRYt, defines the CO2, SO2, and NOX emission changes due to the changes in the technical coefficient matrix shown in column 5. Similarly, the third term of equation (11), SoRoDY, refers to the CO2, SO2, and NOX emission changes due to the changes in the final demand of various industries and the values are represented by column 6. It is evident from table 3 that the change in total emissions of the three pollutants in the pre-reform period (during 1983-1984 to 1993-1994) was due primarily to the change in final demand and change in intensity. These two effects are mainly responsible for an increase in emissions for the reform period as well. On the other hand, the change in technology has reduced the emission levels. The effect of the change in final demand was consistent and rather more amplified to change the total emissions level during the economic reform (1993-1994 to 20062007).

INDIA: AIR POLLUTION & HOUSEHOLD INCOME Table 3

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INDIA: STRUCTURAL DECOMPOSITION ANALYSIS OF THE EMISSION OF CARBON DIOXIDE (CO2), SULFUR DIOXIDE (SO2), AND NITROGEN OXIDE (NOX) FROM 1983-1984 TO 2006-2007 (in million tons of CO2, SO2, and NOX) Total Emission Change (DTE) 266.41 2.94 4.93 748.96 12.05 12.54 Comparative Static Change Change in Change in Change in Final Intensity (DS) Technology (DR) Demand (DY) 138.94 1.29 2.91 172.72 7.43 2.54 -110.36 -1.06 -1.34 -194.44 -3.62 -2.72 237.83 2.71 3.36 770.68 8.24 12.72

Year

Pollutant CO2 SO2 NOX CO2 SO2 NOX

1983-1984 to 1993-1994

1993-1994 to 2006-2007

The changes in intensity throughout the period (1983-1984 to 2006-2007) became positive for all three pollutants. This means that the industries are using more energy, which in turn contributes to increasing CO2 emissions. The total generation of CO2 emissions is higher for the electricity sector relative to the other sectors of the economy. It is due to the maximum amount of low-grade coal burned in addition to inefficient processes.40 The low thermal efficiency of power plants in India is caused by the small size of the power plants in general. The low capacity utilization of thermal power plants decreases the overall energy efficiency.41 Similar to electricity, the transport, iron and steel, and the construction sectors also have high CO2 intensities. The intensity of SO2 and NOX emissions reveals quite a similar picture to that of CO2 during the period of our study. The changes in the technical coefficient of CO2, SO2, and NOX show negative contributions throughout the study period. The change is higher in the reform period compared to the pre-reform period. The basic reason behind this is due to the advancement of technology, which has resulted in reducing energy consumption and, in turn, generating lower emissions. For example, technical changes like minimization of the risks of exploration, the optimal mix of exploration, energy conservation, and interfuel substitution have taken place in the oil sector. The slight technical improvement in the natural gas sector has been made possible due to the minimization of associated natural gas flaring, the offtake of natural gas, the minimization of exploration risks by balancing the portfolio to include different basins in India, and vigorous measures for energy conservation and interfuel substitution. Moreover, oil capacity and utilization was very low in the 1980s but improved substantially, particularly in the early 1990s. Due to technical

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improvements in capacity utilization, the growth rate of refinery throughput performed well during the late 1990s to the early 2000s. In the case of the coal sector, improved efficiencies in arenas such as exploration, exploitation, efficient utilization, and new mining technologies have played an important role.42 New mining technologies for coal have been introduced with a fair degree of success. Above all, different environmental policies have been adopted and implemented by the government of India, which has helped to achieve these improvements. The changes in the final demand for CO2, SO2, and NOX emissions dominate all other factors. Its contribution is three times higher in the reform period relative to the pre-reform period. This is due to the rapid increase in energy consumption by the final demand sector. The demand for electricity in the household sector is expanding rapidly as the pressure of urbanization is ongoing and the availability of consumer durables continues to expand. The accelerated pace of urbanization and diverse urban growth patterns involve many basic structural changes in the economy, which have significant implications for energy use in addition to CO2 emissions. Urbanization brings changes in the way resources are collected, distributed, and used. The rising per-capita income associated with urbanization increases demand for both end-use energy and energy-intensive products and services. Overall, the most salient factor is changes in final demand, which dominate throughout. It is reflective of the increase in household consumption along with the rising consumption in other sectors, such as the government, exports, and imports. As we already stated, household energy consumption is escalating along with accompanying pollutiona situation that cannot be overlooked. Our next task is to estimate the emissions generated by households in different income groups and the factors responsible for those emissions.
Results Based on Model 2Energy Consumption Patterns of the Household Sector: Before focusing on the contribution to emissions by different household

income groups, the study highlights the commercial energy consumption pattern of the household sector in India during the time span from 1980 to 2000. The household sector is responsible for about 45 percent of the total primary energy consumption in India, with non-commercial/biomass fuels constituting a large share. Commercial energy use increased more than three times between 1980 and 2005, from 325.8 to 1,142.0 petajoules. This reflects a change in the fuel mix. By 2005, the share of liquefied petroleum gas (LPG) in the secondary energy use rose from 16.57 percent in 1980 to 37.42 percent in 2005, while kerosine consumption declined from 72.38 percent in 1980 to 23.19 percent in 2005. Electricity, on the other hand, has increased approximately fourfold during 1980-2005 (table 4). Disparities in household energy use exist between high- and low-income groups in India. The energy consumption (1980-2005) demonstrates various characteristics. In urban areas, kerosine, electricity, and LPG were the major

INDIA: AIR POLLUTION & HOUSEHOLD INCOME Table 4

INDIA: HOUSEHOLD COMMERCIAL ENERGY CONSUMPTION, 1980 TO 2005 (in petajoules or quadrillion joules) Energy Carrier Kerosine Liquefied petroleum gas Electricity Total % of Total 72.38 16.57 11.05 100.00 % of Total 55.60 21.57 22.83 100.00 % of Total 32.70 33.39 33.91 100.00

331

1980 235.8 54.0 36.0 325.8

1990 301.5 117.0 123.8 542.3

2000 282.0 288.0 292.5 862.5

2005 265.0 427.0 450.0 1142.0

% of Total 23.19 37.42 39.39 100.00

Source: B. S. Reddy, P. Balachandra, and H. S. K. Nathan, An Entrepreneurship Model for Energy Empowerment of Indian HouseholdsEconomic and Policy Analysis, WP-2008-024, Indira Gandhi Institute of Development Research, Mumbai, India, November 2008.

energy carriers in the early 1980s. However, consumption switched significantly by 2005 with LPG and electricity predominating. The income of households influences energy consumption in many ways. With increasing income, the price of the fuel becomes less of a constraint. Households prefer to use a convenient form of energy, such as LPG. Due to the use of efficient devices, the total consumption of energy will not increase significantly. Highincome households have opted for modern energy carriers e.g., electricity or LPG, versus kerosine. Many households utilize LPG for cooking and electricity for heating water. High-income households also purchase other high-grade fuels, for example, electricity, which are employed for a greater variety of end uses such as air conditioning, refrigeration, etc. (other than heating). The structural differences of energy carriers for cooking, lighting, transport, and other durables among different income categories are readily observed in the case of India.43 As the data show (table 4), there was a variation in the contribution of different energy carriers to the cooking energy mix of different income groups over the time period under study. With increasing disposable income and changes in life-styles, households tend to switch from biomass to kerosine and then to LPG/electricity. The energy consumption patterns of urban households change significantly. This may be due to the increase in the various appliances such as TVs, microwaves, air conditioning units, and the like. The main factors that determine the selection of energy carriers include: prices of fuels and the corresponding utility devices, disposable income of households, availability of fuels, and cultural preferences.44 With technological advances, associated end-use devices also are moving in the same direction. But, inefficient energy use is significant in most cases. Thus, B. Reddy observes a positive relationship between growth in per-capita income and household demand for commercial fuels.45 For most developing countries, demand for commercial fuels has risen more rapidly than per-capita

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incomes since 1970. This reflects the increasing desire for comfort and discretionary energy consumption. Using the five forms of occupation, B. Reddy observes an association between occupation and energy useattaining higher employment status and a shift to modern energy carriers.46 However, this is applicable largely to urban regions where the availability of modern energy carriers is high. For example, 45 percent of the households in the middle-level employee category use LPG. Similar results were found for other categories, too, as seen in table 5. The household energy consumption changes in India from traditional to commercial energy forms are leading to the generation of more pollution. The underlying factors behind these changes in pollution by different household groups will be analyzed here on the basis of the model developed earlier, i.e., equation (15). The changes in intensity contributed by the three groups are identified in table 6. The overall intensity effect sharply increased from the first period (1983-1984 to 1993-1994) to the second period (1993-1994 to 2006-2007), as did the contributions made by the three income groups. The negative adjustment of this intensity effect was made by the other final demand sectors such as exports, imports, and government consumption. For both of the periods, the other final demand sector performed negatively, i.e., the contribution helped to reduce the intensity of CO2, SO2, and NOX. The increased intensity effect during the study period is distributed among the three income groups. Among the income groupings, the higher-income groups contribute more to an increase in intensity and the remainder is distributed among the middle- and lower-income levels. The assessment of the whole study period (1983-1984 to 2006-2007) reflects the change in the emission intensity of all income groups, which increased in the reform period compared to the pre-reform period for carbon dioxide and sulfur dioxide while for Table 5
INDIA: SHARE OF ENERGY USE BY OCCUPATION (as percent of total) Liquefied Petroleum Gas 70.70 45.51 38.00 17.23 32.00

Occupation Executives Middle-level employees Lower-level employees Laborers Others

Biofuels 15.76 30.82 42.71 56.87 48.51

Kerosine 11.64 22.25 18.41 24.81 18.81

Electricity 1.90 1.41 0.88 1.10 0.67

Total 100 100 100 100 100

Source: B. S. Reddy, Economic and Social Dimensions of Household Energy Use: A Case Study of India, in Advances in Energy Studies, eds. E. Ortega and S. Ulgiati, Proceedings of the IV the Biennial International Workshop, Unicamp, Campinas, Sao Paulo, Brazil, June 16-19, 2004, pp. 469-77.

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NOX the growth declined. Overall, it clearly reveals that even if the reform strategy for energy is implemented by the government of India, the changes in emissions intensity led to an increase in emissions due to the energy consumption patterns of the higher-income group. The technological change of the three air pollutants has improved the situation during the period. It helped to reduce emissions throughout the study period. The negative contribution (reduction in emissions) is distributed among the final demand categoriesthree different income groups and other final demand sector. As seen in table 7, the contribution made by the other final demand sector is highest in that respect, followed by the higher income groups while the contribution of the lower-income groups is positive (an increase in emissions), which helps to explain the higher emissions. However, for the lower-income groups the pre-reform contribution was greater when compared to the reform period. The change in the final demand component is highest among all other factors, as can be seen in table 8. The total contribution made by this factor is higher in the reform period relative to the pre-reform period. The largest share is contributed by the higher-income groups, followed by the middle-income and other final demand category. The lowest income groups are the least contributors in this respect. The performance is similar across the pollutantsCO2, SO2, and NOXin the two periods. The trend of the contribution of different factors remains almost the same for the middle- and higher-income groups across the period. The degree of shifting between factors for middle- and higher-income groups is not considerable. But the contribution made by lower-income groups is least across the factors, with the exception of technological change. Table 6
INDIA: CONTRIBUTION OF LOWER-, MIDDLE-, AND HIGHER-INCOME GROUPS TO CHANGES IN INTENSITY OF CARBON DIOXIDE (CO2), SULFUR DIOXIDE (SO2), AND NITROGEN OXIDE (NOX) EMISSIONS FROM 1983-1984 TO 2006-2007 (in million tons of CO2, SO2, and NOX) Comparative Static Change Change in Intensity Pollutants (DS) CO2 SO2 NOX CO2 SO2 NOX 138.94 1.29 2.91 172.72 7.43 2.54 LowerIncome Groups 25.54 0.80 0.34 44.37 0.99 -0.44 MiddleIncome Groups 46.96 -4.49 -0.19 69.74 1.57 -2.28 HigherIncome Groups 109.33 4.67 1.68 115.86 3.79 0.25 Other Final Demand Sectors -42.89 0.31 1.08 -57.25 1.08 5.01

Year 1983-1984 to 1993-1994 1993-1994 to 2006-2007

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INDIA: CONTRIBUTION OF LOWER-, MIDDLE-, AND HIGHER-INCOME GROUPS TO CHANGES IN TECHNOLOGY OF CARBON DIOXIDE (CO2), SULFUR DIOXIDE (SO2), AND NITROGEN OXIDE (NOX) EMISSIONS FROM 1983-1984 TO 2006-2007 (in million tons of CO2, SO2, and NOX) Comparative Static Change Change in Technology Pollutants (DR) CO2 SO2 NOX CO2 SO2 NOX -110.36 -1.06 -1.34 -194.44 -3.62 -2.72 LowerIncome Groups 31.48 0.65 0.15 5.46 -0.48 0.47 MiddleIncome Groups -10.51 2.57 0.08 -40.87 -0.76 2.44 HigherIncome Groups -49.07 -3.04 -0.79 -68.62 -1.85 -0.27 Other Final Demand Sectors -82.26 -1.24 -0.78 -90.41 -0.53 -5.36

Year 1983-1984 to 1993-1994 1993-1994 to 2006-2007

The higher-income groups dominate for all pollutant cases, followed by middle-income groups, while lower-income groups have a negligible role over the study period for all emissions and for almost all factors. It is well known that people who live in poverty are exposed to the worst environmental and health risks. Overall, somewhere between 25 and 33 percent of the global burden of diseases can be attributed to environmental factors. This proportion is larger in conditions of poverty, where more environmental hazards are present in the nearby Table 8
INDIA: CONTRIBUTION OF LOWER-, MIDDLE-, AND HIGHER-INCOME GROUPS TO CHANGES IN THE FINAL DEMAND OF CARBON DIOXIDE (CO2), SULFUR DIOXIDE (SO2), AND NITROGEN OXIDE (NOX) EMISSIONS FROM 1983-1984 TO 2006-2006 (in million tons of CO2, SO2, and NOX) Comparative Static Change LowerChange in Final Income Pollutants Demand (DY) Groups CO2 SO2 NOX CO2 SO2 NOX 237.83 2.71 3.36 770.68 8.24 12.72 27.46 0.42 0.07 33.89 0.16 0.24 MiddleIncome Groups 65.71 0.58 0.38 164.90 0.88 1.91 HigherIncome Groups 113.65 1.67 1.35 317.26 3.70 4.87 Other Final Demand Sectors 31.01 0.040 1.56 254.63 3.50 5.70

Year 1983-1984 to 1993-1994 1993-1994 to 2006-2007

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living and working environment, and people have less capacity to protect themselves against exposure and effects of harmful and unpleasant pollutants. The environmental threats facing poor people tend to be more directly hazardous to human health. We know that a pollution-related health hazard is not uniform in all income groups. It affects those with lower incomes more than upper-income levels. The incidence of poverty is high in India; about one-third of the population lives below the poverty line, which is the largest part of the populace affected by environmental hazards. Our study reveals that the higher-income grouping is responsible for generating more than 75 percent of the emissions, with 20 to 22 percent of emissions generated by the middle-income level. Thus, very negligible amounts of emissions are being contributed by the lower-economic stratum. Unfortunately, the lower-income level must contend with the serious health effects stemming from pollution hazards.47

Conclusion The current study estimates the emissions of carbon dioxide, sulfur dioxide, and nitrogen oxide in India during the period from 1983-1984 to 2006-2007. It investigates the changes in emissions and various sources of change in industrial CO2, SO2, and NOX emissions using input-output structural decomposition analysis. Further, it examines the contribution made by different income groups to these emissions. The study has found that the industrial emissions of air pollutants have increased considerably in India during 1983-1984 to 2006-2007 (14.38 percent per annum for CO2, 24.23 percent annually for SO2, and 15.25 percent per year for NOX). The main factors for these increases are the changes in the final demand throughout the period. Changes in intensity also have made a positive contribution. On the other hand, changes in technology have reduced emissions across the period. These effects helped reduce the total changes in emissions. The results of the decomposition analysis show that the Indian economy has been moving toward greater energy- and pollution-intensive industries. Though the economy is trying to adopt more efficient technologies, given the escalation of energy consumption, its intensiveness has not moved in a desirable direction. Results of the different income groups reveal that higher-income groupings are mostly responsible for such changes in emissions. This has been due to their higher levels of energy consumption. The middle-income levels contributed as well. However, we find that the lower-income group is a minor player from an emissions standpoint. Taking into account the contribution factor-wise by different income groups, the higher-income stratum most influenced the intensity and final demand effect. The middle-income group also plays a similar role. On the other hand, the technology effect responded favorably and helped reduce the emission changes.

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The overall assessment from the study reveals that the contribution to the air pollution made by the lower-income group is very insignificant, while the higherincome levels are major players for all emissions and for almost all factors. The reality is that, for the most part, the higher-income groups do not use commercial energy efficiently and lower-income levels are still not in a position to increase their consumption of commercial energy. Though the household income level in India has increased in the reform period, as reflected by the rise in the per-capita income, it is not reflected in the commercial energy consumption of the lowerincome groups. This might be the reason why the contribution of generation of emissions is still negligible by the lower-income segments. Thus, one significant conclusion is that a sizable task lays ahead for India in tackling the issue of emissions generation by the higher-income groups in the economy. On the basis of the results of our study, the pollution measures can be targeted on those four decomposition factors related to air pollution from fossil fuel combustion. We suggest that the priority has to be given to the conservation of energy that will play a significant part in addressing energy issues and in reducing environmental pollution. The government has to ensure strict implementation of the energy conservation act at various levels of the economy. It should not only target the industrial sector but also the household sector. The main goal is to make the household sector more aware of the necessity of efficient use of energy in their life-style choices.
NOTES Terra Green, India Seventh Most Environmentally Hazardous Country, available at http:// terragreen.teriin.org/index.php?option=com_terragreen&task=detail&section_id=936&category_id= 1&issueid=45, accessed on February 2011. Government of India, Ministry of Environment and Forests (MOEF), Environmental Assessment of Industrial Clusters (New Delhi: MOEF, December 2009), available at http://pib.nic.in/ newsite/erelease.aspx?relid=56483, accessed on May 2011. B. R. Gurjar, A. Singh Nagpure, T. P. Singh, and J. Hanson, Air Quality in Megacities, in Encyclopedia of Earth, ed. Cutler J. Cleveland (Washington, D.C.: Environmental Information Coalition, National Council for Science and the Environment, 2008). United Nations Environmental Programme (UNEP) and the World Health Organization (WHO), Urban Air Pollution in Megacities of the World (Oxford: UNEP and WHO, 1992), and D. Mage, G. Ozolins, P. Peterson, A. Webster, R. Orthofer, V. Vandeweerd, and M. Gwynne, Urban Air Pollution in Megacities of the World, Atmospheric Environment, vol. 30, no. 5 (1996), pp. 681-86.
5 K. Mukhopadhyay, Air Pollution in India and Its Impact on the Health of Different Income Groups (New York: Nova Science Publishers Inc., 2009). 4 3 2 1

World Bank, What Do We Know About Air Pollution? India Case Study, South Asia Urban Air Quality Management Briefing Note no. 4, The World Bank, Washington, D.C., 2002, available at http://www.worldbank.org/sarurbanair.

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World Resource Institute, Air Pollution and Health Effects (Washington, D.C.: The World Bank, Health and Environment publication, 1998-1999). W. J. Kruvant, People, Energy and Pollution, in The American Energy Consumer, eds. D. K. Newman and D. Day (Cambridge, Massachusetts: Ballinger, 1975).
9 I. Romieu and M. Hernandez, Air Pollution and Health in Developing Countries: Review of Epidemiological Evidence, in Health and Air Pollution in Rapidly Developing Countries, eds. G. McGranahan and F. Murray (Stockholm, Sweden: Environment Institute, 1999), pp. 43-66. 8

Government of India, Central Pollution Control Board (CPCB), Central Pollution Control Board Report (New Delhi, India: CPCB, 2000). K. Mukhopadhyay, Air Pollution in India and Its Impact on the Health of Different Income Groups.
12 13 14 11

10

World Bank, World Development Indicators (Washington, D.C.: World Bank, 2000). World Bank, World Development Report (Washington, D.C.: World Bank, 2005).

S. Pachauri and D. Spreng, Direct and Indirect Energy Requirements of Households in India, Energy Policy, vol. 30, no. 6 (2002), pp. 511-23, and S. Pachauri An Analysis of Cross-Sectional Variations in Total Household Energy Requirements in India Using Micro Survey Data, Energy Policy, vol. 32, no. 15 (2004), pp. 1723-735 and An Energy Analysis of Household Consumption: Changing Patterns of Direct and Indirect Use in India (New York: Springer, 2007), p. 211. S. Pachauri, An Analysis of Cross-Sectional Variations in Total Household Energy Requirements in India Using Micro Survey Data.
16 17 15

Ibid.

K. Mukhopadhyay, Air Pollution in India and Its Impact on the Health of Different Income Groups. N. J. Peet, J. Carter, and J. T. Baines, Energy in the New Zealand Household, 19741980, Energy, vol. 10, no. 11 (1985), pp. 1197-1208; C. Weber and U. Fahl, Energieverbrauch und Bedurfnisbefriedigung: eine Analyse mit Hilfe der energetischen inputoutput-rechnung, Energiewirtschaftliche Tagesfragen, vol. 43, no. 9 (1993), pp. 605-12; K. Vringer and K. Blok, The Direct and Indirect Energy Requirement of Households in the Netherlands, Energy Policy, vol. 23, no. 10 (1995), pp. 893-910; H. C. Wilting, An Energy Perspective on Economic Activities (Ph.D. dissertation, University of Groningen, Groningen, the Netherlands, 1996); M. Lenzen, The Energy and Greenhouse Gas Cost of Living for Australia during 1993-94, Energy, vol. 23, no. 6 (1998), pp. 497-516; J. Munksgaard, K. Pedersen, and M. Wier, Impact of Household Consumption on CO2 Emissions, Energy Economics, vol. 22, no. 4 (2000), pp. 423-40; J. Munksgaard, M. Wier, and C. Dey, Using Input-Output Analysis to Measure the Environmental Pressure of Consumption at Different Spatial Levels, Journal of Industrial Ecology, vol. 9, nos. 1-2 (2006), pp.169-85; and M. Wier, M. Lenzen, J. Munksgaard, and S. Smed, Effects of Household Consumption Patterns on CO2 Requirements, Economic Systems Research, vol. 13, no. 3 (2001), pp. 259-74.
19 18

M. Wier et al., op.cit.

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J. Munksgaard, M. Wier, and C. Dey, Using Input-Output Analysis to Measure the Environmental Pressure of Consumption at Different Spatial Levels.
21 S. Chaudhuri and A. S. P. Pfaff, Fuel-Choice and Indoor Air Quality: a Household-Level Perspective on Economic Growth and the Environment, Working Paper, Department of Economics and School of International and Public Affairs, Columbia University, New York, 2003; R. Carlos and C. Dakila, Environmental Implication of Household Consumption Expenditures in the Philippines, Paper presented to the 14th International Conference on Input-Output Techniques, Montreal, Canada, October 2002; and L. Jiang and B. C. ONeill, The Energy Transition in Rural China, International Journal of Global Energy Issues, vol. 21, nos. 1-2 (2004). 22 23 24

R. Carlos and C. Dakila, op. cit. S. Chaudhuri and A. S. P. Pfaff, op. cit. L. Jiang and B. C. ONeill, op. cit.

25 N. S. Murthy, Manoj Panda, and Jyoti Parikh, Economic Development, Poverty Reduction and Carbon Emissions in India, Energy Economics, vol. 19, no. 3 (1997), pp. 327-54; N. S. Murthy, Manoj Panda, and Jyoti Parikh Economic Growth, Energy Demand and Carbon Dioxide Emissions in India: 19902020, Environment and Development Economics, vol. 2, no. 2 (1997), pp. 173-93; and Jyoti Parikh, Manoj Panda, and N. S. Murty, Consumption Patterns by Income Groups and Carbon-Dioxide Implications for India: 19902010, International Journal of Global Energy Issues, vol. 9, nos. 4-6 (1997), pp. 237-55. 26 S. Pachauri, An Analysis of Cross-Sectional Variations in Total Household Energy Requirements in India Using Micro Survey Data.

B. S. Reddy, Economic and Social Dimensions of Household Energy Use: A Case Study of India, in Advances in Energy Studies, eds. E. Ortega and S. Ulgiati, Proceedings of the IV the Biennial International Workshop, Unicamp, Campinas, Sao Paulo, Brazil, June 16-19, 2004, pp. 469-77. P. K. Sikdar and S. Mondal, Air Pollution Management Programme of Calcutta, Journal of Environmental Studies and Policy, vol. 2, no. 2 (1999), pp. 71-86. V. Kathuria and N. A. Khan, Environmental Equity and Vulnerability to Air Pollution: Evidence from Delhi, Working Paper, Institute of Economic Growth, Delhi, India, March 26, 2006.
30 A. Garg, Pro-Equity Effects of Ancillary Benefits of Climate Change Policies: A Case Study of Human Health Impacts of Outdoor Air Pollution in New Delhi, World Development, vol. 39, no. 6 (2011), pp. 1002025. 29 28

27

W. Leontief, The Structure of American Economy, 1919-39, 2 University Press, 1951).

32

31

nd

ed. (New York: Oxford

nd

R. Miller and P. Blair, Input-Output Analysis: Foundations and Extensions, 2 bridge: Cambridge University Press, 2009).
33

ed. (Cam-

Structural decomposition analysis (SDA) is a technique to study over period changes. It has become a major tool for disentangling the growth in some variables over time, separating the

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changes in the variable into its constituent parts. SDA seeks to distinguish major sources of change in the structure of the economy broadly defined by means of a set of comparative static changes in key parameters of an input-output table.
34 35

Income groups/classes considered here as different expenditure class.

Government of India, Ministry of Statistics and Program Implementation, National Sample Survey Organization (NSSO), Consumer Expenditure (1983), Schedule no. 1.0, 38th round (New Delhi: NSSO, 1984), Consumer Expenditure (1993-94), Schedule no. 1.0, 50th round (New Delhi: NSSO, 1995, and Consumer Expenditure (2003-2004), Schedule no. 1.0, 60th round (New Delhi: NSSO, 2005). Government of India, Ministry of Statistics and Program Implementation, Central Statistical Organization (CSO), Input-Output Transaction Table for 1983-84 of India (New Delhi: CSO, 1990), Input-Output Transaction Table for 1993-94 of India (New Delhi: CSO, 2000), and InputOutput Transaction Table for 2006-7 of India (New Delhi: CSO, 2010). Government of India, Ministry of Statistics and Program Implementation, Central Statistical Organization (CSO), Energy Statistics Report (New Delhi: CSO, 2009), and Center for Monitoring the Indian Economy (CMIE), Energy Sectors for India (Mumbai: CMIE, 1991) and Energy Sectors for India (Mumbai: CMIE, 1998).
38 39 40 37 36

Income groups/classes considered here as different expenditure class. Emission intensity is considered as direct intensity, i.e., emission generates per unit of output.

K. Mukhopadhyay, Energy Consumption Changes and CO2 Emissions in India (New Delhi, India: Allied Publisher, 2002). Government of India, Planning Commission, Eleventh Five Year Plan (2006-7 to 2011-12) (New Delhi: Planning Commission, 2008).
42 43 41

K. Mukhopadhyay, Energy Consumption Changes and CO2 Emissions in India.

B. S. Reddy, Economic and Social Dimensions of Household Energy Use: A Case Study of India.
44 A. K. N. Reddy and B.S. Reddy, Substitution of Energy Carriers for Cooking in Bangalore, Energy - The International Journal, vol. 19, no. 5 (1994), pp. 561-72.

B. S. Reddy, Economic and Social Dimensions of Household Energy Use: A Case Study of India.
46 47

45

Ibid.

K. Mukhopadhyay, Air Pollution in India and Its Impact on the Health of Different Income Groups.