Mitigating Carbon Emission through Economic Instruments: An Indian Perspective

The paper has two objectives. One, to analyse the pattern of energy usage in India and the implications thereof for carbon emission; two, to examine whether pricing and taxation policies have any role to play in mitigating carbon emissions. We show that the pattern of energy usage exhibits a shift towards non-coal based energy products. It also suggests that the reduction in carbon emissions is not sufficient to warrant the use of carbon taxation for mitigating emissions.