Experiment with Models: Results and Discussion

Abstract

This chapter reports the result based on the model calibrated in Chap. 3. It analyzes the results on direct and indirect water pollution requirement, water pollution content of the total final demand of different sectors of India, and effects of pollution abatement costs on output and prices of different goods and services. The results show that the amount of total pollution generation per unit of the product is significantly higher for all industries compared to the direct pollution generation coefficient. Significant numbers of industries (livestock, chemical, beverages, leather, cotton textiles, miscellaneous textile, paper, and milk and milk products) in India are producing water pollution above MINAS by several times. The pollution abatement activities involve costs which, in turn, will affect the price and output of different industries. To analyze the effect of these costs, a clean water sector is added to the economy.

This chapter further computes the new set of output and prices due to the implementation of the clean water sector into the economy and identifies the most effected sector. The analysis shows that the demand for the output of all the different sectors has changed and the price of all the sectors has increased. We find that chemical, mining, and electricity are key sectors which have extensive linkages in the demand for clean water. Any shift in cost has an effect on prices. Since many industries are affected by the cost of purchased intermediate goods and services, prices have also risen unevenly across the economy. The pattern of final consumption has also been affected. Final consumers, that is, the households, ultimately bear the burden of pollution generation, either through a price increase – due to production of clean water or tax imposed by the government on producers – or health treatment cost when pollution is not treated. This chapter also identifies the total amount of different types of pollution in the total final demand and its different components for the industries. The total coefficients as derived in this chapter provide policy makers with one way of assuming the impact of alternative environmental management strategies on pollution generation.

Appendices

Appendices

5.1.1 Appendix 5.A.1: Direct Water Pollution Output Coefficients (Thousand Tons Discharged per Lakh Rupees of Output at 2006–2007 Price)

Sectors	SS	DS	Chloride	Sulfide	Oil/grease
Agriculture	0.0003723	0.0000000	0.0000000	0.0000000	0.0000269
Other agriculture	0.0000004	0.0000001	0.0000000	0.0000000	0.0000001
Milk and milk products	0.0001366	0.0002112	0.0000192	0.0000000	0.0000529
Livestock	0.0002094	0.0000624	0.0000000	0.0000000	0.0000170
Fishing	0.0000021	0.0000000	0.0000000	0.0000000	0.0000009
Coal and lignite	0.0000000	0.0000001	0.0000000	0.0000000	0.0000000
Mining and quarrying	0.0000123	0.0000262	0.0000000	0.0000000	0.0000026
Sugar	0.0000091	0.0000362	0.0000000	0.0000000	0.0000032
Oil and vanaspati	0.0000064	0.0000000	0.0000000	0.0000000	0.0000065
Tea, coffee, and beverages	0.0000181	0.0004395	0.0000000	0.0000000	0.0000000
Food products	0.0000041	0.0000000	0.0000000	0.0000000	0.0000054
Cotton textile	0.0005009	0.0070510	0.0000000	0.0000000	0.0000000
Woolen and silk textile	0.0000412	0.0001012	0.0000976	0.0000449	0.0000030
Jute, hemp, and mesta textiles	0.0004542	0.0000002	0.0010619	0.0006210	0.0000083
Miscellaneous textile products	0.0000320	0.0000069	0.0000800	0.0000435	0.0000006
Wood and wood products	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Paper and paper products	0.0001102	0.0000000	0.0000000	0.0000000	0.0000000
Leather and leather products	0.0001749	0.0002525	0.0002542	0.0000020	0.0000000
Rubber products	0.0000205	0.0001630	0.0000000	0.0000026	0.0000032
Plastic products	0.0000000	0.0000146	0.0000000	0.0000000	0.0000000
Petroleum and coal tar products	0.0000103	0.0000295	0.0000000	0.0000038	0.0000300
Inorganic heavy chemicals	0.0000036	0.0001319	0.0000000	0.0000000	0.0000000
Organic heavy chemicals	0.0000433	0.0000000	0.0000000	0.0000000	0.0000460
Fertilizers	0.0000691	0.0000000	0.0000000	0.0000000	0.0000000
Pesticides	0.0000766	0.0000000	0.0000776	0.0000000	0.0000000
Paints, varnishes, and lacquers	0.0000078	0.0000000	0.0000000	0.0000000	0.0000088
Other chemicals	0.0000000	0.0000309	0.0000000	0.0000000	0.0000000
Synthetic fibers, resin	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Other nonmetallic mineral products	0.0000051	0.0000000	0.0000000	0.0000000	0.0000000
Iron and steel	0.0000377	0.0000000	0.0000066	0.0000002	0.0000000
Machinery and metal products	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Electrical machinery	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Transport equipment	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Other machinery	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Construction	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Electricity gas and water supply	0.0088113	0.0000000	0.0000000	0.0000000	0.0000000
Transport services and communication	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Other services	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000

	Phenol	Zinc	Others	BOD	COD
Agriculture	0.0000000	0.0000000	0.0001217	0.0009952	0.0015586
Other agriculture	0.0000000	0.0000000	0.0000000	0.0000004	0.0000010
Milk and milk products	0.0000000	0.0000000	0.0001270	0.0007796	0.0017162
Livestock	0.0000000	0.0000000	0.0003169	0.0006246	0.0034404
Fishing	0.0000000	0.0000000	0.0000006	0.0000041	0.0000087
Coal and lignite	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Mining and quarrying	0.0000001	0.0000000	0.0000000	0.0000007	0.0000000
Sugar	0.0000000	0.0000000	0.0000037	0.0000214	0.0000428
Oil and vanaspati	0.0000000	0.0000000	0.0000000	0.0000369	0.0000546
Tea, coffee, and beverages	0.0000000	0.0000000	0.0000002	0.0002478	0.0005391
Food products	0.0000000	0.0000000	0.0000000	0.0000034	0.0000059
Cotton textile	0.0000000	0.0000000	0.0000231	0.0000390	0.0022288
Woolen and silk textile	0.0000004	0.0000000	0.0000023	0.0000352	0.0001300
Jute, hemp, and mesta textiles	0.0000023	0.0000000	0.0000083	0.0005780	0.0011396
Miscellaneous textile products	0.0000000	0.0000002	0.0000666	0.0000515	0.0001135
Wood and wood products	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Paper and paper products	0.0000000	0.0000000	0.0001632	0.0000841	0.0001151
Leather and leather products	0.0000000	0.0000000	0.0001133	0.0000526	0.0002102
Rubber products	0.0000000	0.0000000	0.0000063	0.0001288	0.0002467
Plastic products	0.0000000	0.0000000	0.0000000	0.0000049	0.0000122
Petroleum and coal tar products	0.0000004	0.0000000	0.0000000	0.0000034	0.0000086
Inorganic heavy chemicals	0.0000000	0.0000000	0.0000212	0.0000204	0.0000606
Organic heavy chemicals	0.0000136	0.0000000	0.0000055	0.0001980	0.0000584
Fertilizers	0.0000000	0.0000000	0.0000479	0.0000000	0.0000000
Pesticides	0.0000000	0.0000000	0.0000262	0.0000741	0.0003371
Paints, varnishes, and lacquers	0.0000041	0.0000000	0.0000000	0.0000265	0.0000033
Other chemicals	0.0000000	0.0000000	0.0000000	0.0000106	0.0000602
Synthetic fibers, resin	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Other nonmetallic mineral products	0.0000000	0.0000038	0.0000021	0.0000000	0.0000031
Iron and steel	0.0000012	0.0000000	0.0000047	0.0000126	0.0000315
Machinery and metal products	0.0000031	0.0000000	0.0000000	0.0000104	0.0000032
Electrical machinery	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Transport equipment	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Other machinery	0.0000175	0.0000000	0.0000000	0.0000595	0.0000185
Construction	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Electricity gas and water supply	0.0000000	0.0000000	0.0000000	0.0000000	0.0000026
Transport services and communication	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000
Other services	0.0000000	0.0000000	0.0000000	0.0000000	0.0000000

1. Source: Results from the study

5.1.2 Appendix 5.A.2: Total (Direct and Indirect) Water Pollution Output Coefficients (Thousand Tons of Pollutants Directly and Indirectly Discharged per Lakh Rupees Worth of Sales of Each Industries to Final Demand)

Total pollution coefficients	SS	DS	Chloride	Sulfide	Oil/Grease
Agriculture	0.0007956	0.0000100	0.0000027	0.0000011	0.0000354
Other agriculture	0.0001386	0.0000095	0.0000016	0.0000003	0.0000030
Milk and milk products	0.0002080	0.0002134	0.0000195	0.0000001	0.0000558
Livestock	0.0004255	0.0000682	0.0000009	0.0000004	0.0000255
Fishing	0.0000881	0.0000375	0.0000164	0.0000096	0.0000031
Coal and lignite	0.0004645	0.0000088	0.0000007	0.0000004	0.0000018
Mining and quarrying	0.0002962	0.0000324	0.0000009	0.0000006	0.0000043
Sugar	0.0001908	0.0000478	0.0000019	0.0000008	0.0000063
Oil and vanaspati	0.0002336	0.0000134	0.0000018	0.0000007	0.0000113
Tea, coffee and beverages	0.0003892	0.0004970	0.0000048	0.0000026	0.0000063
Food products	0.0004990	0.0000365	0.0000049	0.0000018	0.0000234
Cotton textile	0.0014403	0.0079805	0.0000061	0.0000031	0.0000043
Woolen and silk textile	0.0008005	0.0004699	0.0001170	0.0000544	0.0000125
Jute, hemp, and mesta textiles	0.0013271	0.0000268	0.0010789	0.0006305	0.0000115
Miscellaneous textile products	0.0006810	0.0013581	0.0000986	0.0000520	0.0000055
Wood and wood products	0.0003519	0.0000278	0.0000042	0.0000019	0.0000039
Paper and paper products	0.0008102	0.0000284	0.0000024	0.0000014	0.0000047
Leather and leather products	0.0005778	0.0003623	0.0003184	0.0000039	0.0000066
Rubber products	0.0006009	0.0002499	0.0000099	0.0000060	0.0000111
Plastic products	0.0006998	0.0000620	0.0000043	0.0000017	0.0000104
Petroleum and coal tar products	0.0004038	0.0000557	0.0000009	0.0000044	0.0000347
Inorganic heavy chemicals	0.0008567	0.0001781	0.0000053	0.0000022	0.0000126
Organic heavy chemicals	0.0008852	0.0000460	0.0000060	0.0000022	0.0000593
Fertilizers	0.0006466	0.0000487	0.0000024	0.0000019	0.0000127
Pesticides	0.0007179	0.0000396	0.0000955	0.0000022	0.0000114
Paints, varnishes, and lacquers	0.0006685	0.0000479	0.0000048	0.0000022	0.0000189
Other chemicals	0.0005479	0.0000715	0.0000050	0.0000025	0.0000104
Synthetic fibers, resin	0.0005426	0.0000512	0.0000039	0.0000021	0.0000164
Other nonmetallic mineral products	0.0011010	0.0000260	0.0000023	0.0000015	0.0000054
Iron and steel	0.0010917	0.0000136	0.0000090	0.0000010	0.0000038
Machinery and metal products	0.0006976	0.0000169	0.0000030	0.0000010	0.0000035
Electrical machinery	0.0006468	0.0000208	0.0000039	0.0000014	0.0000043
Transport equipment	0.0007208	0.0000227	0.0000041	0.0000011	0.0000034
Other machinery	0.0003563	0.0000225	0.0000026	0.0000010	0.0000033
Construction	0.0005639	0.0000134	0.0000030	0.0000014	0.0000045
Electricity gas and water supply	0.0124848	0.0000158	0.0000010	0.0000010	0.0000062
Transport services and communication	0.0004112	0.0000233	0.0000011	0.0000013	0.0000083
Other services	0.0001170	0.0000075	0.0000007	0.0000004	0.0000019

Total pollution coefficients	Phenol	Zinc	Others	BOD	COD
Agriculture	0.0000003	0.0000000	0.0001642	0.0012266	0.0020176
Other agriculture	0.0000002	0.0000000	0.0000214	0.0000510	0.0002048
Milk and milk products	0.0000001	0.0000000	0.0001395	0.0008718	0.0018697
Livestock	0.0000002	0.0000000	0.0003540	0.0008954	0.0038925
Fishing	0.0000002	0.0000000	0.0000038	0.0000194	0.0000494
Coal and lignite	0.0000007	0.0000000	0.0000025	0.0000134	0.0000249
Mining and quarrying	0.0000006	0.0000001	0.0000018	0.0000102	0.0000177
Sugar	0.0000005	0.0000000	0.0000184	0.0000656	0.0001778
Oil and vanaspati	0.0000004	0.0000000	0.0000181	0.0001154	0.0002450
Tea, coffee, and beverages	0.0000007	0.0000000	0.0000207	0.0003615	0.0007636
Food products	0.0000005	0.0000000	0.0000713	0.0004507	0.0008320
Cotton textile	0.0000007	0.0000000	0.0000356	0.0000780	0.0026036
Woolen and silk textile	0.0000026	0.0000000	0.0000185	0.0001016	0.0003593
Jute, hemp, and mesta textiles	0.0000030	0.0000000	0.0000177	0.0006173	0.0012411
Miscellaneous textile products	0.0000013	0.0000002	0.0000837	0.0001024	0.0006294
Wood and wood products	0.0000011	0.0000000	0.0000121	0.0000378	0.0000948
Paper and paper products	0.0000010	0.0000000	0.0002280	0.0001498	0.0002277
Leather and leather products	0.0000008	0.0000000	0.0002013	0.0002287	0.0009229
Rubber products	0.0000018	0.0000000	0.0000230	0.0001923	0.0004028
Plastic products	0.0000028	0.0000000	0.0000136	0.0000707	0.0001176
Petroleum and coal tar products	0.0000009	0.0000000	0.0000024	0.0000154	0.0000301
Inorganic heavy chemicals	0.0000028	0.0000000	0.0000359	0.0000909	0.0001624
Organic heavy chemicals	0.0000169	0.0000000	0.0000205	0.0002771	0.0001705
Fertilizers	0.0000017	0.0000000	0.0000612	0.0000420	0.0000612
Pesticides	0.0000029	0.0000000	0.0000434	0.0001589	0.0004936
Paints, varnishes, and lacquers	0.0000067	0.0000000	0.0000131	0.0000943	0.0001096
Other chemicals	0.0000027	0.0000000	0.0000140	0.0000916	0.0001933
Synthetic fibers, resin	0.0000040	0.0000000	0.0000131	0.0000885	0.0001140
Other nonmetallic mineral products	0.0000008	0.0000042	0.0000087	0.0000220	0.0000457
Iron and steel	0.0000029	0.0000000	0.0000097	0.0000361	0.0000726
Machinery and metal products	0.0000053	0.0000000	0.0000063	0.0000387	0.0000517
Electrical machinery	0.0000025	0.0000001	0.0000082	0.0000350	0.0000593
Transport equipment	0.0000020	0.0000000	0.0000070	0.0000322	0.0000598
Other machinery	0.0000253	0.0000000	0.0000070	0.0001096	0.0000824
Construction	0.0000011	0.0000005	0.0000091	0.0000411	0.0000884
Electricity gas and water supply	0.0000013	0.0000000	0.0000049	0.0000218	0.0000418
Transport services and communication	0.0000010	0.0000000	0.0000072	0.0000377	0.0000659
Other services	0.0000004	0.0000000	0.0000072	0.0000375	0.0000741

1. Source: Results from the study

5.1.3 Appendix 5.A.3: Total Water Pollution Content of the Total Final Demand of Different Sectors of India for the Years 2006–2007 (Figures in Thousand Tons per Lakh Rupees of Final Demand)

	SS	DS	Chloride	Sulfide	Oil/grease
Agriculture	28,047.180	352.964	93.906	40.325	1,247.683
Other agriculture	730.585	50.161	8.575	1.523	15.606
Milk and milk products	2,589.849	2,657.075	242.246	1.585	694.557
Livestock	1,667.918	267.215	3.383	1.559	100.021
Fishing	287.997	122.608	53.452	31.208	10.179
Coal and lignite	−505.211	−9.540	−0.777	−0.445	−2.002
Mining and quarrying	−5,495.064	−601.067	−17.086	−10.393	−79.455
Sugar	425.280	106.590	4.168	1.722	14.055
Oil and vanaspati	792.464	45.621	6.045	2.497	38.292
Tea, coffee, and beverages	2,784.895	3,556.406	34.246	18.637	45.177
Food products	6,968.977	510.193	68.348	24.504	326.791
Cotton textile	6,926.438	38,378.429	29.568	14.776	20.881
Woolen and silk textile	2,646.234	1,553.558	386.748	179.704	41.312
Jute, hemp, and mesta textiles	187.270	3.786	152.242	88.964	1.630
Miscellaneous textile products	6,956.574	13,873.530	1,006.801	531.674	56.336
Wood and wood products	−15.890	−1.256	−0.190	−0.085	−0.174
Paper and paper products	991.176	34.784	2.993	1.696	5.713
Leather and leather products	872.565	547.175	480.806	5.904	10.014
Rubber products	952.330	396.046	15.686	9.494	17.517
Plastic products	938.712	83.112	5.719	2.308	13.981
Petroleum and coal tar products	1,088.405	150.095	2.407	11.989	93.426
Inorganic heavy chemicals	−131.860	−27.413	−0.818	−0.345	−1.936
Organic heavy chemicals	−962.014	−50.032	−6.540	−2.434	−64.417
Fertilizers	−300.668	−22.635	−1.120	−0.862	−5.922
Pesticides	70.788	3.902	9.415	0.212	1.127
Paints, varnishes, and lacquers	261.464	18.719	1.875	0.864	7.408
Other chemicals	3,690.583	481.357	33.463	16.980	70.238
Synthetic fibers, resin	−490.702	−46.265	−3.557	−1.886	−14.797
Other nonmetallic mineral products	−1,536.285	−36.239	−3.145	−2.124	−7.481
Iron and steel	1,318.846	16.488	10.822	1.244	4.560
Machinery and metal products	5,216.749	126.389	22.567	7.328	25.830
Electrical machinery	13,277.001	427.006	79.503	28.461	88.627
Transport equipment	7,666.044	241.886	43.223	11.365	36.406
Other machinery	1,080.839	68.202	7.747	3.030	9.864
Construction	43,064.693	1,020.483	228.822	106.772	345.014
Electricity gas and water supply	40,741.259	51.444	3.255	3.199	20.100
Transport services and communication	14,019.336	794.576	38.971	44.292	284.578
Other services	16,404.083	1,055.877	100.642	52.290	266.543
Total	203,228.843	66,201.234	3,144.410	1,227.531	3,737.282

	Phenol	Zinc	Others	BOD	COD
Agriculture	11.464	0.501	5,787.176	43,239.777	71,124.675
Other agriculture	1.207	0.045	112.743	268.655	1,080.059
Milk and milk products	0.805	0.029	1,737.619	10,856.176	23,282.331
Livestock	0.810	0.029	1,387.706	3,509.713	15,258.271
Fishing	0.695	0.029	12.264	63.494	161.412
Coal and lignite	−0.774	−0.012	−2.760	−14.524	−27.108
Mining and quarrying	−10.483	−1.068	−33.164	−188.816	−329.263
Sugar	1.114	0.050	41.057	146.193	396.408
Oil and vanaspati	1.429	0.036	61.492	391.567	831.342
Tea, coffee, and beverages	5.019	0.138	147.832	2,586.631	5,464.297
Food products	7.248	0.288	996.028	6,294.280	11,620.614
Cotton textile	3.556	0.108	171.040	374.918	12,520.509
Woolen and silk textile	8.509	0.084	61.172	335.898	1,187.909
Jute, hemp, and mesta textiles	0.424	0.002	2.502	87.106	175.134
Miscellaneous textile products	13.698	1.886	855.089	1,046.361	6,429.566
Wood and wood products	−0.047	−0.001	−0.545	−1.705	−4.282
Paper and paper products	1.269	0.035	278.865	183.279	278.524
Leather and leather products	1.186	0.027	303.949	345.302	1,393.721
Rubber products	2.928	0.040	36.376	304.797	638.377
Plastic products	3.692	0.033	18.202	94.896	157.741
Petroleum and coal tar products	2.422	0.122	6.408	41.625	81.110
Inorganic heavy chemicals	−0.433	−0.006	−5.524	−13.986	−24.994
Organic heavy chemicals	−18.362	−0.030	−22.276	−301.124	−185.287
Fertilizers	−0.805	−0.016	−28.443	−19.527	−28.454
Pesticides	0.285	0.002	4.282	15.666	48.666
Paints, varnishes, and lacquers	2.613	0.014	5.107	36.866	42.860
Other chemicals	17.941	0.166	94.523	617.054	1,302.306
Synthetic fibers, resin	−3.642	−0.020	−11.835	−80.074	−103.100
Other nonmetallic mineral products	−1.151	−5.886	−12.089	−30.677	−63.702
Iron and steel	3.514	0.043	11.736	43.597	87.700
Machinery and metal products	39.418	0.341	47.052	289.563	386.364
Electrical machinery	50.439	1.672	168.027	717.995	1,216.453
Transport equipment	21.464	0.397	74.494	342.985	635.968
Other machinery	76.610	0.114	21.277	332.446	249.941
Construction	86.624	36.793	695.455	3,139.146	6,747.374
Electricity gas and water supply	4.170	0.120	15.847	71.134	136.267
Transport services and communication	35.058	1.140	244.314	1,285.976	2,247.668
Other services	57.004	1.826	1,009.239	5,255.777	10,385.753
Total	426.920	39.072	14,292.237	81,668.440	174,803.129

1. Source: Results from the study