Abstract
The study adopts two approaches: (a) macro level and (b) micro level. The macro-level approach deals with examining the post-liberalization changes in the structure of manufacturing industries and estimation of industrial pollution loads for India as a whole. The micro-level approach deals with estimating the impact of pollution on social well-being at the village level. The chapter discusses the method of data collection, calculation of pollution loads and model specifications for estimating the impact of trade-led manufacturing growth on environment in terms of scale effect, composition effect and technique effect. An empirical model (ordinal logit model) is also constructed for estimating the impact of pollution on social well-being taking the case of Gujarat.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
See Hettige et al. (1995).
- 2.
Sulphur dioxide (SO2), nitrogen dioxide (NO2), carbon monoxide CO), volatile organic compounds (VOC), fine particulates (FP) and total suspended particulates (TSP).
- 3.
Biological oxygen demand (BOD), total suspended solids (TSS).
- 4.
Capital–labour ratio measured as fixed capital per worker, reflects the mechanization of the production process of a particular industry during a fiscal year.
- 5.
See Antweiler (2001) for detail.
- 6.
Household is the basic decision-making unit for the allocation of family labour between various economic and non-economic activities. The household takes this decision on the basis of cost and benefits of an economic activity. If the activity is remunerative, majority of the family labour will be engaged in that activity, otherwise they try to shift to some other remunerative activity.
- 7.
Educational status of the household was determined by giving appropriate weights to the household member according to the level of education (up to 5th standard, 5th to 10th standard and above 10th standard) and then indexed.
- 8.
Polytomous universal model method (PLUM), Statistical Package for the Social Sciences.
- 9.
Also known as Proportional Odd Model.
- 10.
We observe an individual Y i in one of the three-ordered categories. The OLM estimates not only the coefficients of the X regressors but also the threshold parameter.
- 11.
These threshold parameters demarcate the boundaries of the various categories. The slope coefficients of the X regressors are the same in each category; it is only that their intercepts (cut-offs) differ. In other words, we have parallel regression lines (surfaces), but they are anchored on different intercepts. That is why OLM are also known as proportional odd models (Gujarati 2011).
- 12.
CDFs are elongated S-shaped curves, which are obviously non-linear.
- 13.
Other sources of irrigation are river and pond. If the toxic waste is discharged into river and pond, the agricultural productivity will decrease.
References
Annual Survey of Industries, weblink: http://mospi.nic.in/
Antweiler, W., B.R. Copeland, and M.S. Taylor. (2001): “Is Free Trade Good for the Environment?”, American Economic Review, Vol. 91(4).
Economic Survey. GOI, weblink: http://indiabudget.nic.in
Gallagher, K. (2004): Free Trade and the Environment: Mexico, NAFTA, and Beyond, Palo Alto, Stanford Law and Politics, Stanford University Press.
Grossman, G.M., and A.N. Krueger. (1993): “Environmental Impact of a North American Free Trade Agreement”, NBER Working Paper No. 3914, Cambridge MA.
Gujarati, D. (2011): Econometrics by Example, Palo Alto, Palgrave Macmillan.
Hettige, H., P. Martin, M. Singh, and D. Wheeler. (1995): “The Industrial Pollution Projection System (IPPS) Policy Research”, Working Paper No. 1431 (part 1 and 2), The World Bank, Policy Research Department, Environment, Infrastructure and Agriculture Division, March.
Jha, Shrehasi, and Shanti Gamper Rabindran. (2004): “Environmental Impact of India’s Trade Liberalization”, https://www.gtap.agecon.purdue.edu/resources/download/1690.pdf , accessed on 16-10-2014.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Jain, H. (2017). Methodology. In: Trade Liberalisation, Economic Growth and Environmental Externalities. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-2887-8_3
Download citation
DOI: https://doi.org/10.1007/978-981-10-2887-8_3
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-10-2886-1
Online ISBN: 978-981-10-2887-8
eBook Packages: Economics and FinanceEconomics and Finance (R0)