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Effect Of Climate Change In Indian Economy

4400 words - 18 pages




Submitted by: Kriti Bhardwaj Date: 1st December, 2010



The most contentious global debate today is the obligations of the developed and the developing countries to take steps to reduce their carbon footprint. Though climate change is a danger for all countries-developed and developing alike, the quantum of responsibility for mitigating climate change is a debatable issue. There is a perceived divide between the obligations of the two ...view middle of the document...

It covers what India, being a developing nation, is doing and how that is affecting the growth of key sectors like power and ultimately the nation’s economic growth.

The economic costs involved in the measures taken up for reducing carbon emissions outweigh the economic benefits that India would get from rapid industrialization. Thus, there is a moral dilemma that India faces to sacrifice one for the other. It can incur heavy costs to mitigate climate change and delay its development or not care about climate change and focus on its development.

This paper analyzes this dilemma and also the rationale behind taking up carbon reduction measures when there are other more fundamental issues to be dealt with in the Indian economy.



I. Introduction…………………………………………………page 4

II. Climate Change and its Impacts………………………… 5

III. Major policies in India to mitigate climate change……… 6-7

IV. Effect on Development………………………………………page 8-11

V. Conclusion………………………………………………… 12

VI. References……………………………………………………page 13



Developing countries’ green house gas emissions will most probably exceed those of the developed world within the first half of this century, foregrounding the need for developing countries’ concerted efforts to reduce the adverse impact of climate change. Even though developing nations have not been keen to accept binding emissions targets, asking that developed nations take action first, most of them are undertaking efforts that have reduced the growth in their own emissions significantly. In most cases, climate mitigation is not the goal, but rather an outgrowth of efforts driven by economic, security, or local environmental concerns.

The issue with climate change is that its impact is not limited to a certain area or bounded by geographical locations. This makes it mandatory for all the nations-whether major contributors to climate change or not, to take steps to control the extent of climate change by reducing or at least limiting their carbon emissions to the current levels. India is a minor contributor to the global carbon emissions at around 3-4% of global levels but it still needs to take steps to limit its emissions since they are on an upward trend due to the direct relationship between economic growth and green house gas emissions.

India is growing at very fast pace, but still needs to go a long way in solving its economic and social issues. More than a third of the population lives below the poverty line and the economic disparity between the rich and poor is increasing rapidly. There is a strong need for the development of the country to solve its major problems of poverty, unemployment and illiteracy which are...

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