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

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Role of Economic Instruments in Mitigating Carbon Emissions

This paper first analyses the pattern of energy usage in India and the implications thereof relating to carbon emissions. Second, it examines whether pricing and taxation policies have any role to play in mitigating carbon emissions from industrial usage in important energy products. The paper shows that the pattern of energy usage exhibits a shift towards non-coal based energy products. It also suggests that the extent of carbon emission reduction is not substantial enough to warrant the use of carbon taxation for mitigating emissions.

India-Sri Lanka Trade

The Free Trade Agreement between India and Sri Lanka, though in a positive direction, does not address the issue of transaction costs that emanates from the transacting environment. Analysing the characteristics of formal and informal trading between India and Sri Lanka the study shows that transaction costs in formal trading are higher than for informal trading and suggests that lowering transaction costs in formal trade could enhance trade between the two countries.

India's Informal Trade with Nepal

The large and vibrant informal trade between India and Nepal continues to thrive despite trade liberalisation in the two countries. This calls for an in-depth analysis of the institutional mechanism that drives informal trade and the reasons for such trade to take place. An analysis carried out on the basis of a field survey in the border areas of Nepal and India reveals that informal traders have developed efficient institutional mechanisms for contract enforcement, information flows, risk sharing and risk mitigation. Analysing the relative importance of trade policy barriers vis-a-vis institutional and other non-economic factors influencing informal trade flows the study shows that informal traders provide better solutions to circumvent the inadequacies and inefficiencies of the formal trade channel.
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