Table Of ContentAnshuman Gupta · Narendra N. Dalei
Editors
Energy,
Environment
and
Globalization
Recent Trends, Opportunities and
Challenges in India
Energy, Environment and Globalization
Anshuman Gupta Narendra N. Dalei
(cid:129)
Editors
Energy, Environment
and Globalization
Recent Trends, Opportunities and Challenges
in India
123
Editors
Anshuman Gupta Narendra N.Dalei
Department ofEconomics Department ofEconomics
Schoolof Business Schoolof Business
University of Petroleum University of Petroleum
andEnergy Studies andEnergy Studies
Dehradun, Uttarakhand, India Dehradun, Uttarakhand, India
ISBN978-981-13-9309-9 ISBN978-981-13-9310-5 (eBook)
https://doi.org/10.1007/978-981-13-9310-5
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Dedicated to our Parents and Families
Foreword I
Energy, environment and globalization are interrelated with each other through
many channels. India, being an emerging economy, has achieved a threshold level
of economic development whereby it can afford the improved quality of the
environment. It is also a signatory to Paris Agreement. India has made many
commitmentsinitsIntendedNationallyDeterminedContributions(INDCs),which
mainlyincludereducingtheemissionintensityby30–35%from2005levelbyyear
2030. To achieve this, India has taken many initiatives as well, namely increasing
thecontributionofrenewableenergyinthecountry’senergymixto40%by2030,
replacing the diesel and petrol vehicles by electrical vehicles, etc. Swachh Bharat
AbhiyanandprovidingLPGconnectionstobelow-poverty-linefamiliesarealsothe
initiatives taken by the government for improving the local environment.
However, India is still a developing economy, which has just entered the lower
middle-incomecountries’club. It stillhastotake care ofitsyouthpopulation. Ten
million youths are added to the workforce annually. To provide them with decent
jobs requires more economic development, especially in the manufacturing sector.
The “Make in India” mission and Foreign Trade Policy (2015–2020) of
Government of India work in this direction by pledging to increase the share of
manufacturing to 25% in GDP and increase exports of goods and services by
providing many incentives to exporters and improving the ease of doing business
environment. It means more industrialization and urbanization requires more
energy. In the same context, India’s national energy policy has also taken many
initiatives giving emphasis on energy accessibility, energy security and mitigation
ofclimate change. Itiswiththese initiatives that thegovernmentistryingtostrike
an optimal balance between economic developmental needs and environmental
concerns.
vii
viii ForewordI
In fact, this book is a timely attempt to critically analyze the trends, challenges
and opportunities in these three important domains (energy, environment and
globalization) separately in India and their relationship with each other. I am sure
this book would provide critical inputs to policy makers, researchers, students and
practitioners.
Prof. Deependra Kumar Jha
Vice-Chancellor
University of Petroleum and Energy
Studies, Dehradun, India
Foreword II
Webelongtotheoldestandoncemostgloriouscivilizationoftheworld,wherethe
place of forest was very prominent. Earlier, our learning centers were situated in
forests, where all princes would attend their education. However, the consumerist
philosophyofBritishhaschangedtherelationshipbetweenpeopleandforest.Now,
theyhavestartedlookingatforestasasourceoftimbertofeedtheirever-increasing
greed. This needs to be reversed. We should replace pine trees with broad-leaved
trees.Forests, likehuman beings,haveacommunitywhereallspeciesoftreesand
animals reside.
Forests are, in fact, mothers for all rivers. However, as a result of deforestation
for mindless pursuit of development, our water sources are drying up and tem-
peratureonearthisrising.TheThirdWorldWar,ifitisfought,wouldtakeplaceas
a result of scarcity of water. We need to go for farming of trees instead of grains.
Thereasonisthefertilityofsoilhasgonedowndrasticallyonaccountofexcessive
use of chemical fertilizers. We need to opt for tree farming simply because they
givefruitsinopenskywardandtheproductivityisalsofourtofivetimesmorethan
grains.
Weshouldholdthe3Jssloganclosetotheheart:PreserveJAL,JUNGLEand
JAMEEN.
In a nutshell, “Ecology is the Permanent Economy.”
I hope this volume would provide significant insights about maintaining the
judicious balance between the need for economic development and environmental
concerns.
Shri Sunderlal Bahuguna
Renowned Environmentalist
Padma Vibhushan Awardee
Dehradun, Uttarakhand, India
ix
Preface
Crusaders,whohavebeenattheforefrontofthebattletolimittheimpactofclimate
change and resultant environmental degradation, must be saddened by the USA
walkingouttheParisAgreement,whichwassignedin2015asthesuccessorofthe
Kyoto Protocol. They will be of the view that this agreement would also meet the
same fate as its predecessor did, which did not complete its overall promised
commitment on account of two big emitters of greenhouse gases (GHGs)—the
USAandAustralia,optingoutofitononepretextoranother.Developingcountries,
including China, were also continuing to increase their emissions. Other industri-
alized countries, which were signatories to the Kyoto Protocol, had a small net
impact on overall global emissions.
TheParisAgreementwasconcludedinDecember2015by196countries.Asof
April 2018, 195 UNFCCC countries have signed the agreement and 176 have
become a party to it. The Agreement aims torespond to the global climate change
threatbykeepingtheglobaltemperatureriseinthetwenty-firstcenturywellbelow
2 °C above pre-industrial levels and to pursue efforts to limit the temperature
increase preferably to 1.5 °C. In the Paris Agreement, each country determines,
plans and periodically reports its own contribution to mitigate global warming.
There is no mechanism to force any country to set a specific target by a specific
date, but each target should go beyond previously set targets. The USA, under the
leadership of Mr. Donald Trump, has withdrawn from the agreement. This agree-
ment is now likely to face the same fate as its predecessors.
India, being an important signatory to the Paris Agreement, has committed
reducing its emission intensity till 2030 by 30–35% below the 2005 levels. This
commitment is different from commitments made by the developed countries,
which have pledged to reduce their emissions in absolute terms. China, being a
developing country with per capita income much higher than India, has also
committed to peak its CO emission by 2030 and reduce its emission per unit of
2
gross domestic product by 60–65% compared to 2005 levels. However, after the
USAwalkingoutoftheagreementunder thepresentleadership ofDonald Trump,
there is again a pall of gloom hanging over the agreement. India, on its part, has
takenmanyinitiativestomeetitspromise,namelytheintroductionofmarket-based
xi
xii Preface
PAT(Perform,AchieveandTrade)scheme,upscalingofrenewableenergytargetto
40%by2030,targetingachangeoverto100%electricvehicles(EVs)by2030and
the recent announcement to replace all government vehicles with EVs.
Energy, environment and globalization are subjects which should always be
dealt with simultaneously because they are interrelated through many channels.
More globalization leads to more economic development based on allocative effi-
ciency,specializationandinnovation.This,inturn,resultsinmoreusageofenergy,
especiallybasedonfossilfuels,whichleadseventuallytomorepollution.Thelocal
pollution is mapped in the famous inverted U-shaped Kuznets curve. It increases
initiallywithincome,andafterreachingacriticallevel,itstartsdeclining.Totackle
localpollutants,national-/state-levellegislativeoradministrativemeasuresmightbe
effective. However, for tackling the global pollutants, like CO resulting in global
2
warming, global agreements, like the Paris Agreement, are needed. However,
enforcingthemisalwaysachallenge.Thereisaviewtobringthemundertheambit
ofWTObyforgingacomprehensiveagreementonthem.However,thereisalways
a fear, especially among developing countries, that they would be used as a new
kind of non-tariff barriers by the developed countries. All these issues have been
dealt judiciously in the book while dealing with trends, challenges and opportu-
nities in energy, environment and globalization in India.
Wewouldliketoacknowledgeourpanelofreviewersforthechapters,whohave
takentimeofftheirbusyscheduleanddonejusticewiththeircommentstorespective
chapters, namely Dr. Manu Gupta, Virginia Commonwealth University, USA;
Dr.GurpreetBhatia,IILMInstituteofHigherEducation,NewDelhi;Dr.D.S.Dagar
(EconomicExpert),InternationalCivilAviationOrganization;Dr.D.P.Singh,pre-
sently with University of Petroleum and Energy Studies, Dehradun, and former
ExecutiveDirectorofAirportAuthorityofIndia;Dr.B.S.Negi,formerDirectorof
GAILandformermemberofPetroleumandNaturalGasRegulatoryBoard,India;and
Dr.T.P.Bhat,ISID,NewDelhi.WewouldalsoliketothankDr.DeependraKumar
Jha,VC,UniversityofPetroleumandEnergyStudies,andShriSunderlalBahuguna,
renowned environmentalist and Padma Vibhushan Awardee, for readily agreeing
to write forewords for the volume. We also take this opportunity to thank
Prof. Deepankar Chakrabarti, Prof. S. K. Pokhriyal and Prof. Loveraj Takru from
UniversityofPetroleumandEnergyStudiesfortheirconstantsupportandmotivation.
We also place in record thanks to all our dear friends for their contribution to this
projectinonewayoranother.Lastbutnotleast,wefeelhighlyindebtedtoourparents
andfamiliesforbeingaconstantsourceofinspirationandsupportduringthisperiodof
time.
Dehradun, India Anshuman Gupta
Narendra N. Dalei
