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Estimation of subsidies on coal in India

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  • Subhes C Bhattacharyya

Abstract

The removal of energy subsidies is considered to be the first step towards a better environment. In order to pursue a policy for subsidy removal, one needs to know exactly the amount of subsidies accorded to different fuels. In this paper, the subsidies involved in the coal sector in India are estimated. Existing prices are reviewed, economic prices are estimated and the two are compared to arrive at appropriate subsidies or taxes. The subsidies are also distributed among different sectors and policy implications of subsidy removal are discussed. Finally, the need to have a larger data sample to study the coal industry is stressed, in order to better understand the cost structure.

Suggested Citation

  • Subhes C Bhattacharyya, 1995. "Estimation of subsidies on coal in India," Natural Resources Forum, Blackwell Publishing, vol. 19(2), pages 135-142, May.
    • Handle: RePEc:wly:natres:v:19:y:1995:i:2:p:135-142
    DOI: 10.1111/j.1477-8947.1995.tb00601.x
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    References listed on IDEAS

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    1. Summers, Lawrence H., 1991. "The Case for Corrective Taxation," National Tax Journal, National Tax Association, vol. 44(3), pages 289-92, September.
    2. Summers, Lawrence H., 1991. "The Case for Corrective Taxation," National Tax Journal, National Tax Association;National Tax Journal, vol. 44(3), pages 289-292, September.
    3. Kosmo, Mark, 1989. "Commercial energy subsidies in developing countries Opportunity for reform," Energy Policy, Elsevier, vol. 17(3), pages 244-253, June.
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