Thermal power-producing States bear a disproportionate pollution burden without adequate compensation. Examine the associated challenges of this imbalance and suggest a viable compensation mechanism.
Kartavya Desk Staff
Topic: Indian Economy and issues relating to planning, mobilization of resources
Topic: Indian Economy and issues relating to planning, mobilization of resources
Q5. Thermal power-producing States bear a disproportionate pollution burden without adequate compensation. Examine the associated challenges of this imbalance and suggest a viable compensation mechanism. (15 M)
Difficulty Level: Difficult
Reference: TH
Why the question Thermal power producing States need to be well compensated for bearing the burden of pollution while supplying electricity to power consuming States Key demand of the question The question demands an analysis of the environmental, economic, and governance challenges faced by thermal power-producing states due to pollution burdens. It also requires a policy-oriented discussion on compensation mechanisms to ensure equitable distribution of costs and benefits. Structure of the Answer Introduction: Briefly highlight the disproportionate pollution burden faced by power-producing states and mention the absence of a structured compensation mechanism. Body: Pollution and economic imbalance: Explain how thermal power generation leads to high emissions, health hazards, and resource depletion in producing states, while consuming states benefit. Challenges of this imbalance: Discuss governance failures, lack of fiscal compensation, poor enforcement of pollution norms, and absence of a polluter-pays principle in energy taxation. Need for a compensation mechanism: Suggest carbon tax, revenue-sharing models, and regulatory reforms to distribute environmental and economic costs more equitably. Conclusion: Emphasize the need for fiscal devolution and green energy incentives to ensure that power-producing states are fairly compensated while advancing India’s clean energy transition.
Why the question
Thermal power producing States need to be well compensated for bearing the burden of pollution while supplying electricity to power consuming States
Key demand of the question
The question demands an analysis of the environmental, economic, and governance challenges faced by thermal power-producing states due to pollution burdens. It also requires a policy-oriented discussion on compensation mechanisms to ensure equitable distribution of costs and benefits.
Structure of the Answer
Introduction:
Briefly highlight the disproportionate pollution burden faced by power-producing states and mention the absence of a structured compensation mechanism.
• Pollution and economic imbalance: Explain how thermal power generation leads to high emissions, health hazards, and resource depletion in producing states, while consuming states benefit.
• Challenges of this imbalance: Discuss governance failures, lack of fiscal compensation, poor enforcement of pollution norms, and absence of a polluter-pays principle in energy taxation.
• Need for a compensation mechanism: Suggest carbon tax, revenue-sharing models, and regulatory reforms to distribute environmental and economic costs more equitably.
Conclusion:
Emphasize the need for fiscal devolution and green energy incentives to ensure that power-producing states are fairly compensated while advancing India’s clean energy transition.