Lights and the Invisibles: towards a regional/sector-wise policy approach exploring India’s economy–environment trade-offs

Monica Jaison () and Althaf Shajahan ()
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Monica Jaison: National Institute of Technology Calicut
Althaf Shajahan: National Institute of Technology Calicut

Asia-Pacific Journal of Regional Science, 2024, vol. 8, issue 1, No 12, 332 pages

Abstract: Abstract Air pollution mitigation strategies are either global or national. In this study, we highlight the need for regional/sector-wise mitigation strategies. We first explored the relationship between economic activity (measured using Nighttime Lights) and air quality for India (and Norway as a comparative reference) employing the Environmental Kuznets Curve (EKC). Second, we focused on the need to shift from global/national-level air pollution mitigation policies to geoclimatic region-wise policy implementation in developing nations with significant economic and physical geography heterogeneity. We considered regional/sector-wise differences in the economic activity–air quality relationship, thereby aiding future policy action in these regions/sectors. We used a panel econometric research design on geospatial variables extracted from the Google Earth Engine. We investigated causality using an Instrument Variable strategy. Economic activity in Norway led to improved air quality, while India is still far from an inverted U-shaped EKC. An inverted U-shaped EKC existed for BIMARU (Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh) states after accounting for transboundary pollution. Transport and industrial sectors were significant contributors to air pollution in India, with Nitrogen Dioxide concentrations highest in the Central, Western, and Eastern regions. At the same time, West India was no longer a Sulfur Dioxide polluting hub. Export hubs were sources of Nitrogen Dioxide pollution, while the primary, secondary, and tertiary sectors were characterized by Carbon Monoxide and Sulfur Dioxide emissions. Given the geographical heterogeneities, global/national intervention policies may not solve the underlying problem anymore. Alternatively, shifting to a decentralized approach involving source-level interventions is the need of the hour.

Keywords: Air quality; Decentralized policy; Economic activity; Environmental Kuznets curve; Geospatial analysis; Nighttime lights (search for similar items in EconPapers)
JEL-codes: F64 N50 O10 O13 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s41685-023-00326-2

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