GS III: Conservation, environmental pollution and degradation, environmental impact assessment.
Higher Coal Tax May benefit economy: IMF
It will boost GDP, cut mortality.
- India has introduced the Clean Environment Cess on coal i.e. on production and imports, amounting to INR 400 ($6.00) per ton of coal in 2016.
- As per an IMF paper “Reforming Energy Policy in India: Assessing the Options”, an annual ₹150 per tonne increase in tax on coal from 2017 to 2030 could:
- prevent over 2.7 lakh deaths from air pollution;
- raise GDP by 1% by 2030;
- reduce carbon dioxide emissions by 12% and
- generate net economic benefits of about 1% of GDP.