ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

M N MurtySubscribe to M N Murty

Measuring Well-being and Accounting Prices of Environmental Resources

Along the non-optimal sustainable developmental paths of the economy, the choice between benefitbased or cost-based accounting prices for measuring wealth assumes importance from the point of empirical feasibility and tractability. In the context of depletion of environmental resource stocks in the development process, compensatory afforestation of one hectare of forestland or reduction of a tonne of particulate matter emission at margin could be regarded as marginal investment projects. The account price of the resource could be either the present value of costs or the present value of benefits of this marginal investment project. The presence of irreversibility in resource use could be a problem in using cost-based accounting prices. Therefore, an empirically feasible method of measuring wealth of a nation could be to use the cost-based ccounting price in general and the benefit-based measure in the special cases where irreversibility is present.

Estimating Cost of Air Pollution Abatement for Road Transport in India

This paper provides some methods of estimation of physical and monetary accounts of air pollution from road transport. Using data from secondary sources and a vehicular survey, estimates of annual air pollution abatement cost for vehicles complying with Euro norms are made for the road transport sector in Andhra Pradesh and Himachal Pradesh. The pollution abatement cost of each vehicle comprises the cost of upgrading vehicular technology and cost of improving fuel quality. For example, the annual pollution abatement cost for a passenger car complying with Euro III norms is estimated at Rs 7,190 and Rs 6,624 for AP and HP, respectively. If all vehicles comply with Euro III norms, total air pollution abatement cost of the road transport sector constitutes 2.13 per cent and 2.16 per cent of state domestic product of the respective states.

Economics and Sustainable Development

knowledges that are possible from different locations.., tracing lines of possible alliance and common purpose between them" (p 39). But since the authors also point out the multiple connections between fieldwork practice and political realities, theory and ideology and especially the operations of power between the academic centre and periphery I expected to find a more solid treatment of the political quandary. If we reject, as we should, the anthropologist's traditional "methodological stance of privileged witnessing" (p 63), are we not thrown back into the also-traditional black hole of cultural relativism from which it is impossible to take a committed position or even to say anything definite at all?

Value Added Tax in a Federation-Commodity Tax Reforms in India

Commodity Tax Reforms in India M N Murty This paper discusses various types of VAT and their application in a federal country or a country with governments at many levels. In particular, it takes up a detailed examination of a comprehensive VAT covering the full chain of business activities from manufacturing to retailing. A case for having a comprehensive VAT at central and state levels in India is discussed. It finds that such a tax system supplemented by specific excises and subsidies to deal with the problems of equity, environment and social needs is ideal for India.

On Setting Prices for Certain Manufacturing

Commodities Raghbendra Jha M N Murty S Paul An examination of budgetary policies reveals that second best pricing rules that take into account revenue, efficiency and equity objectives of government and recognise the existence of alternative sources of revenue to government may provide a suitable framework for setting public sector prices in India. In this paper the authors use such a pricing model for estimating optimal prices for certain manufacturing commodities.

Peoples Participation and Common Property Resources

Property Resources Kanchan Chopra Gopal K Kadekodi M N Murty Though relevant in a wide spectrum of situations, participatory management is becomig increasingly pertinent in the management of common property resources. While historically ownership and management of these resources rested with the state, governments' failure to preserve common property resources together with their excessive exploitation for development has led to serious degradation of the environment with the attendant ecological repercussions. Under peoples' participation as an alternative, the beneficiary/client groups are made responsive to the cost of preservation. Such a system makes development with preservation possible and renders the assumed trade-off between development and preservation non-operational WHAT Is PEOPLES' PARTICIPATION?

Prices for Public Electricity Supply in India-Efficiency, Distributional Equity and Optimal Structure

Efficiency, Distributional Equity and Optimal Structure M N Murty Formulae for optimal price structures for public sector intermediary and final consumption goods are derived taking into account the objective of distributional equity. Estimates of optimal price structures for public electricity supply in India are made using data from different sources. The estimates show that electricity should be sold at subsidised prices for both final consumption and intermediary input uses in India. However, the rate of subsidy should be less for intermediary input uses in relation to final consumption uses of electricity Optimal price structures also indicate a marked trade-off between consumption efficiency and distributional equity objectives.

Horizontal Equity and Choice between Income and Expenditure Taxes

Horizontal Equity and Choice between Income and Expenditure Taxes M N Murty This paper argues that while an expenditure tax is superior to an income tax from the point of view of horizontal equity and other economic objectives, partial tax reforms like substituting an expenditure tax for a personal income tax may not be welfare improving. An attempt is made to provide a method of estimation of incidence of revenue policies that affect consumer expenditure (commodity taxes, public sector commodity price-cost mark-ups and an expenditure tax) on people in various expenditure classes in the economy Finally, some estimates are presented of distribution of burden of commodity and personal income taxes in India by household consumer expenditure classes.
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