- Although the past decade of rapid economic growth has brought many benefits to India, the environment has suffered, exposing the population serious air and water pollution.
- A new report finds that environmental degradation costs India $80 billion per year or 5.7% of its economy.
- Green growth strategies are needed promote sustainable growth and to break the pattern of environmental degradation and natural resource depletion. Emission reductions can be achieved with minimal cost to GDP.
Senior Environmental Economist
What can be done?
- A 10% particulate emission reduction will lower GDP only modestly. GDP will be about $46 billion lower in 2030 due to interventions, representing a loss of 0.3 % compared to business as usual.
- A 30% particulate emission on the other hand reduction will lower GDP by about $97 billion, or 0.7 %.
- GDP growth rate will be negligibly reduced by about 0.02 to 0.04% in both scenarios. There will be significant health benefits under both scenarios which will compensate for the projected GDP loss.
- The savings from reduced health damages will range from $105 billion in the 30% case and by $24 billion with a 10% reduction.
- Under both the scenarios, another important benefit would be a substantial reduction in CO2 as a co-benefit which has a potential of being monetized.