Summary and Conclusion

Abstract

This chapter summarizes the study and draws some major conclusions. The study provides several interesting findings which should be taken into consideration by academicians and policy makers. An important finding indicates that policy makers should note that the total pollution coefficients should be considered as alternative environmental management strategies and not just direct pollution coefficient. Water pollution abatement activities will have a significant impact on the Indian economy, leading to the expansion of output and increasing prices. While the increase in output is beneficial to the economy, consumers will be affected severely due to the price increase. Moreover, the industries will likely lose their competitive advantage due to the price rise of the outputs from both buyers and sellers end. The pollution content in the foreign trade of India also reveals significant result. For an emerging economy like India, trade sector plays an important role in generating GDP and employment. The current attempt signifies that as the Indian economy is more export oriented after 1991 policy reforms, the exporting industries such as cotton textiles are of serious concern because an emphasis on export growth of cotton textile will likely to create more water pollution. Another important finding from the estimates of EDP due to water pollution shows a significant reduction in NDP due to the degradation of water resources. This study strongly suggests that if other natural resources could be accounted, then NDP reduction would be greater. Several policy options based on command and control and economic instruments have been evaluated critically.