ISSN: 2375-4397
+44 1223 790975
Arti Agarwal* and Nachiketa Tiwari
Indian Institute of Technology Kanpur, India
Scientific Tracks Abstracts: J Pollut Eff Cont
Stubble burning in North India has been a major contributing factor to the growing menace of air pollution in the National Capital Region of India for the last two decades. Though the health aspects of air pollution due to stubble burning have been extensively studied, its economic costs due to environmental damage have not been studied holistically. We attempt to estimate these costs using Instrumental Variable (IV) Analysis. Using VIIRS Data from NASA, we count the number of field fires per day in Punjab and Haryana during the September-December harvesting season, called FIRECOUNT. We use FIRECOUNT as the IV to estimate the concentration of PM2.5 and PM10 due to stubble burning. This is then regressed against the Gross State Domestic Product (GSDP) of New Delhi to identify the effect of increase in PM2.5 or PM10 on the GSDP of New Delhi. We find that field fires in North India contribute significantly to PM2.5 and PM10 concentration in New Delhi, and that an increase in PM2.5 by 100 per cent is correlated with a decrease in the GSDP of New Delhi by approximately 1 per cent. This loss in GSDP can be in millions of Indian Rupees and this externality has strong policy implications for lawmakers in New Delhi. Keywords: Air pollution, Environmental economics.
Arti Agarwal is affiliated to Department of Interdisciplinary Studies, Indian Institute of Technology Kanpur. Her work is in modelling and empirically evaluating sustainable economic development and design of policies regarding the same.