Green Growth and the Right to Energy in India

Abstract

In this paper, we propose an Energy Policy with Equity (EPE) for India, which will fundamentally change the energy mix of the Indian economy towards clean, green energy and will guarantee universal access to formal sources of energy like electricity, up to a certain amount. Any carbon mitigation strategy needs to alter India’s dependence on fossil fuels, requiring a systemic overhaul of its energy mix. Implementing a carbon tax will mitigate emissions and mobilise revenue. While part of this carbon tax revenue could be used to change the energy mix, the other part could be used for an in-kind transfer of free energy, up to a limit, beyond which it becomes fully chargeable from the first unit consumed. This we call the Right to Energy programme. We find that in order to implement this programme and also to meet the global carbon reduction goals, the necessary tax would be $60.4 per metric ton of carbon dioxide. The free entitlement of fuel and electricity per household comes out to be 2268 kWh per annum, and there is an annual universal travel pass of $17.9 per person for use in public transport.