This is the study to understand market based instrument under socio-environmental management field.

1. Market Based Instruments Group 4 Birendera Jit Singh ChandershekherJoshi Chirag Sharma DhruvTandon GauravAgarwal

2. Agenda MBI Overview Major MBIs MBI Vs CAC MBIs in Indian Context Case Study Reference

4. Imposition Vs Involvement.

5. Industry Innovation

6. Market Based instrument

7. Policy instrument

9. Changing tax

10. Introducing levies

11. Giving Subsidies

12. Right Based

13. ‘Cap’ and ‘Trade’

14. Offset scheme

15. Market Friction

16. Disclosing information such as Eco-labelingExample of MBI

18. Environment vs. Development Coexistence

19. Innovation through Competition

20. Resource Capping – Issue Rights – Rights Trading

21. Government/Regulators

23. The Govt. Factor

25. SoX Emissions CappingExamples of Cap and Trade

27. Environment vs. Development Coexistence

28. Compensate Negative by Positive

31. Water Regeneration OffsetsExamples of Environmental Offsets

33. Increases Penetration and Transparency

34. Attempt to Reduce Market Friction

35. Increase Information Flow

36. Product differentiation

38. Bio-Banking Initiatives

39. Trading Water Entitlements over the InternetExamples of Market Friction based Instruments

41. Beneficial as a starting point.

42. Allows firms greater flexibility

43. Possible lowest cost to society

45. Restricting technology.

46. Penalties too low and enforcement tends to be weak.

47. legislation does not keep up with the change.

48. Less cost-effective.

49. Political costs may be high.CACs Disadvantages

51. State Government subsidy- 25% of the project capital cost,

52. Loans from financial institutions- 30% of the project capital cost, and

54. Air pollution control equipment (100%)

55. Water pollution control equipment (100%)

56. Solid waste control equipment (100%)

57. New commercial vehicle acquired as a replacement for a condemned vehicle of (over 15 years old)

58. between 1.10.1998 and 1.4.2000 – 60%

59. between 1-4-2001 and 1-4-2002 – 50%

64. Firms are required to holdone allowance for each ton of sulfur dioxide they emit.

65. Firms are allowed to transfer allowances among facilities or to other firms or to bank them for use in future years. SO2 Allowances Transferred Under the Acid Rain Program

67. Environmentally sound – Environmental quality is not sacrificed because the overall number of permits and allowances is lower than the total emissions level set by the regulatory agency.

68. SO2 Case Study Start-up costs expensive in order to set up a comprehensive permit trading system that is practicable and easy to operate. Obstacles and Implementation Issues (a) to develop own regional emissions trading scheme for SO2 or NOX following the USEPA approach (b) operate as a trading hub for emissions trading of air pollutants (SO2 and NOX) and/or GHG. - Even a combination of (a) and (b). Possible opportunities are Allowance Prices (1995-2004)

70. http://europa.eu/legislation_summaries/energy/european_energy_policy/l28191_en.htm

72. http://www.unescap.org/drpad/vc/orientation/M5_3.htm

74. Q & A

75. Thanks