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Air pollution and income distribution in India

Concern over the environmental effects of fossil fuels in India has been growing as domestic consumption levels increase. Along with industry, households are major consumers of commercial energy and, consequently, major contributors to the total energy use in India. Emission levels in the country are gradually increasing. The present study estimates emissions related to fossil fuel combustion in India and also identifies the factors responsible for changes in those emissions during the 1980s and 1990s. Results show that the factor relating to changes in final demand, which reflect increased economic growth, had the greatest influence on emission levels. The study disaggregates households into three income groups, examining the contribution each makes to fossil-fuel-based pollution in India with respect to the various factors identified. Analysis indicates that higher- and middle-income groups generated more pollution due to excessive and inefficient consumption of commercial energy. The paper concludes with a discussion of policy implications.