The Conflict Between Economy
and Environment—An Environmentally
Extended Social Accounting Matrix
for India
Barun Deb Pal
Abstract This paper is an extension of existing ESAM for India for the year 2006–
07 by incorporation of local air pollutants. The ESAM multiplier model described
here analysed the conflict between economic growth and environmental emissions.
The available emission data in India shows only the direct contribution of any
activity on total emission inventory of India, whereas this multiplier model enables
us to understand the direct- and indirect-induced effects of economic growth on
GHG emission. This is true from the fact that the thermal electricity, cement, and
iron and steel sectors are highly energy intensive, and hence their impact on
emission is very high as compared to other sectors of the Indian economy. But it is
also interesting to observe that the sectors which are low energy intensive have
significant impact on overall emission inventory through the indirect-induced
impact. On the other hand, the income-pollution multiplier presented in this study
brings forth the issue that rural poverty alleviation will not impact much to the
environment unless it is happening through rural to urban migration. Finally, these
linkages would help policy makers to understand sector-specific policy requirement
for environmental emission control.
Keywords Social accounting matrix Á Air pollution Á Environmental accounting Á
Environmental social accounting matrix Á Environmental policy analysis Á
Multiplier analysis
1 Introduction
The developing countries face sustainability problems reflected by high levels of
basic needs, un-satisfaction and growing environmental problems. India is one
among them. In India, the ongoing population growth along with a move towards
B.D. Pal (&)
Centre for Economic Studies and Policy, Institute for Social and Economic Change,
Bangalore 560072, India
e-mail: palbarundeb@gmail.com
© Springer International Publishing Switzerland 2016
S. Nautiyal et al. (eds.), Climate Change Challenge (3C)
and Social-Economic-Ecological Interface-Building, Environmental Science,
DOI 10.1007/978-3-319-31014-5_13
203
and Environment—An Environmentally
Extended Social Accounting Matrix
for India
Barun Deb Pal
Abstract This paper is an extension of existing ESAM for India for the year 2006–
07 by incorporation of local air pollutants. The ESAM multiplier model described
here analysed the conflict between economic growth and environmental emissions.
The available emission data in India shows only the direct contribution of any
activity on total emission inventory of India, whereas this multiplier model enables
us to understand the direct- and indirect-induced effects of economic growth on
GHG emission. This is true from the fact that the thermal electricity, cement, and
iron and steel sectors are highly energy intensive, and hence their impact on
emission is very high as compared to other sectors of the Indian economy. But it is
also interesting to observe that the sectors which are low energy intensive have
significant impact on overall emission inventory through the indirect-induced
impact. On the other hand, the income-pollution multiplier presented in this study
brings forth the issue that rural poverty alleviation will not impact much to the
environment unless it is happening through rural to urban migration. Finally, these
linkages would help policy makers to understand sector-specific policy requirement
for environmental emission control.
Keywords Social accounting matrix Á Air pollution Á Environmental accounting Á
Environmental social accounting matrix Á Environmental policy analysis Á
Multiplier analysis
1 Introduction
The developing countries face sustainability problems reflected by high levels of
basic needs, un-satisfaction and growing environmental problems. India is one
among them. In India, the ongoing population growth along with a move towards
B.D. Pal (&)
Centre for Economic Studies and Policy, Institute for Social and Economic Change,
Bangalore 560072, India
e-mail: palbarundeb@gmail.com
© Springer International Publishing Switzerland 2016
S. Nautiyal et al. (eds.), Climate Change Challenge (3C)
and Social-Economic-Ecological Interface-Building, Environmental Science,
DOI 10.1007/978-3-319-31014-5_13
203