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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 Lucknow
Noida Campus
20.11.2015 1
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…………………………….. 2
Environmental goods
3
Environmental goods
• Air
• Water
• Natural surroundings
• Non market goods
• Change in quality thereof
4
• Use
• Non –use
• Existence
• Option
• Vicarious
• Bequest
• Quasi-option
Typology of values of environmental goods
5
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
6
• 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
7
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
8
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 econometrics
sample size
randomized 9
• Survey techniques
• Components of surveys
• Randomization
• Sample size
• Econometric tools
• Statistical software
Survey Methodology
10
Exxon Valdez Oil Spill (1989)
11
• Indirect valuation methods or
revealed preference methods
• Travel Cost Method
• Hedonic Price Method
12
Travel Cost method
13
Are you a home owner?
14
15
• 1948 Donora, PA 20 people died
• 1952 London Fog killed over 3000
people
• 1982 Bhopal Gas Tragedy killed over
3000 people
Major environmental disasters
16
Bhopal Gas Tragedy (1984)
17
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 18
Donora, PA Smog (1948)
19
London Fog (1952)
20
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
21
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
22
Sampling of smoke in India
23
• 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
24
• 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
25
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
26
• 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
27
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
28
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
29
Discussion and questions?
rajeev.kumar@nic.in
30

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Rajeev Kumar Indian Institute of Management Lucknow Noida Campus on Nov 20 2015

  • 1. Environmental law and its applications Rajeev Kumar (All view expressed in this presentation are my personal views) Indian Institute of Management Lucknow Noida Campus 20.11.2015 1
  • 2. 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…………………………….. 2
  • 4. Environmental goods • Air • Water • Natural surroundings • Non market goods • Change in quality thereof 4
  • 5. • Use • Non –use • Existence • Option • Vicarious • Bequest • Quasi-option Typology of values of environmental goods 5
  • 6. 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 6
  • 7. • 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 7
  • 8. 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 8
  • 9. 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 econometrics sample size randomized 9
  • 10. • Survey techniques • Components of surveys • Randomization • Sample size • Econometric tools • Statistical software Survey Methodology 10
  • 11. Exxon Valdez Oil Spill (1989) 11
  • 12. • Indirect valuation methods or revealed preference methods • Travel Cost Method • Hedonic Price Method 12
  • 14. Are you a home owner? 14
  • 15. 15
  • 16. • 1948 Donora, PA 20 people died • 1952 London Fog killed over 3000 people • 1982 Bhopal Gas Tragedy killed over 3000 people Major environmental disasters 16
  • 17. Bhopal Gas Tragedy (1984) 17
  • 18. 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 18
  • 19. Donora, PA Smog (1948) 19
  • 21. 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 21
  • 22. 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 22
  • 23. Sampling of smoke in India 23
  • 24. • 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 24
  • 25. • 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 25
  • 26. 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 26
  • 27. • 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 27
  • 28. 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 28
  • 29. 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 29