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Environmental law and its applications

Rajeev Kumar

(All view expressed in this presentation are my personal views)

Indian Institute of Management LucknowNoida Campus

20.11.2015

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Plan for presentation

Time available: 90 minutes

Discussion : 15 minutes

environmental law targets?

Presentation : 45 minutes

Environmental goods

Valuation

Regulatory

Prescriptive

Discussion: 15 minutes

Successes /failures in mitigating environmental change?

Closing remarks……………………

questions……………………………..

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Environmental goods

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Environmental goods

• Air

• Water

• Natural surroundings

• Non market goods

• Change in quality thereof

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• Use

• Non –use

• Existence

• Option

• Vicarious

• Bequest

• Quasi-option

Typology of values of environmental goods

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Measurement of values

• Transaction to equate the change in environment and

the money value

• Pay to not to change

• Accept to allow change

• Direct valuation methods or stated preference methods

• Contingent Valuation Method (CVM)

• Choice Modeling

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• Techniques for evaluating change in non market goods• Direct Valuation or Stated Preference

Method• Contingent Valuation (CV) method

(WTP/ WTA)• Choice modeling……….combinations of

change and values • Indirect method

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Basic set up

• An introductory section that helps set the general context for the decision to be made;

• A detailed description of the good, service, or project to be offered to the respondents;

• The institutional setting in which the good will be provided;

• The manner in which the respondent is to pay for the good;

CV Method

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Use focus groups

Pretest questionnaire

Use realistic valuation and credible payment- willingness to pay to get athe identified service or the good with an identified timeline

Payment linked to the availability of the good

Use debriefing techniques

‘art of asking questions’

Good econometricssample sizerandomized

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• Survey techniques

• Components of surveys

• Randomization

• Sample size

• Econometric tools

• Statistical software

Survey Methodology

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Exxon Valdez Oil Spill (1989)

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• Indirect valuation methods or

revealed preference methods

• Travel Cost Method

• Hedonic Price Method

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Travel Cost method

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Are you a home owner?

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• 1948 Donora, PA 20 people died

• 1952 London Fog killed over 3000

people

• 1982 Bhopal Gas Tragedy killed over

3000 people

Major environmental disasters

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Bhopal Gas Tragedy (1984)

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Hazardous chemicals management

• Factories Act 1948 has provisions for storage of hazardous

substances.

• In 1996, the Central Government framed the Chemical Accidents

(Emergency, Planning, Preparedness and Response) Rules to

Supplement the Hazardous Chemical Rules of 1989.

• Hazardous Wastes (Management, Handling and Transboundary

Movement) Rules, 2008

• Defines the role of ‘occupier’

• generation, handling, collection, reception, treatment,

transport, storage, recycling, reprocessing, recovery, reuse

and disposal of hazardous wastes.

• Several forms and schedules

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Donora, PA Smog (1948)

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London Fog (1952)

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Environmental pollution• Command and control• Prescriptive• Technology- specific

• Cap and Trade• Taxation = value of the negative externality

• US Model• Sulphur dioxide trading (1990)• Carbon dioxide trading?

• European trading in Carbon (EU ETS) (2005)• covers more than 11,000 power stations and manufacturing plants in

the 28 EU member states as well as Iceland, Liechtenstein and Norway

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Kyoto protocol (1997)

• Clean Development Mechanism,

• Project based exchange between industrialized and

developing countries

• Joint Implementation,

• Project based exchange between industrialized

countries

• Intergovernmental Emissions Trading

• Exchange of caps between industrialized countries

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Sampling of smoke in India

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• Clean Air Act was passed and US EPA was constituted in 1970 (original 1963), revised in 1990.• State Implementation Plans in the US

context• Resource Conservation and Recovery Act

1976

US Context

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• Constitution has environment related entries in all the Lists

• Supreme Court in Subhas Kumar V. State of Bihar (AIR 1991 SC 420) held that right to environment is a fundamental right of every citizen of India and is included in the “right to life” guaranteed under Article 21 of the Constitution of India.

• Air Act 1981, Water Act 1974 and Environment Protection Act 1986

Indian context

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Union List Entries• Industries• Regulation and development of oil fields and mineral oil resources• Regulation of mines and mineral development• Regulation and development of inter-State rivers and river valleys• Fishing and fisheries beyond territorial waters.

State List Entries• Public health and sanitation• Agriculture, protection against pest and prevention of plant diseases.• Land, colonization, etc.• Fisheries• Regulation of mines and mineral development subject to the provisions of

List-I• Industries subject to the provisions of List-I.

Common or Concurrent List Entries• Forests• Protection of wild animals and birds• Economic and social planning• Population control and family planning

Indian Context

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• Article 48-A of the Constitution under Directive Principles of State Policy and Article 51 A(g) of the Constitution under Fundamental Duties.• Responsibility of the State Government to

protect and improve the environment and to safeguard the forests and wildlife of the country.

• Every citizen to protect and improve the natural environment including forests, lakes, rivers and wildlife and to have compassion for living creatures.

Indian Context

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Panchayats are assigned with the powers to perform such functions as mentioned in 29 subjects, in the Eleventh Schedule of the Constitution. Among them, the following are related to environment.

• Agriculture, including agricultural extension.• Land improvement, implementation of land reforms, land consolidation

and soil conservation.• Minor irrigation, water management and watershed development.• Animal husbandry, dairying and poultry.• Fisheries.• Social forestry and farm forestry.• Minor forest produce.• Rural housing.• Drinking water.• Fuel and fodder.• Roads, culverts, bridges, ferries, waterways and other means of

communication.• Non-Conventional energy sources.• Health and sanitation, including hospitals, primary health centres and

dispensaries.• Maintenance of community assets.

Indian Context

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Municipalities are assigned following responsibilities related to environment in the Twelfth Schedule of the Constitution to be taken care of by the Municipalities (Nagarpalikas):

• Urban planning including town planning.• Regulation of land-use and construction of buildings.• Water supply for domestic, industrial and commercial and solid

waste management,• Public health, sanitation conservancy and solid waste

management.• Urban forestry, protection of the environment and promotion of

ecological aspects.• Slum improvement and upgradation.• Provision of urban amenities and facilities such as parks,

gardens, playgrounds.• Cattle pounds; prevention of cruelty to animals.• Regulation of slaughter houses and tanneries.

Indian Context

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Discussion and questions?

rajeev.kumar@nic.in