Inequality and water pollution in India

Sulhi Ridzuan

doi:10.2166/wp.2021.057

Abstract

AbstractIndia is notorious for high inequality and high water pollution. There is a growing body of literature that says inequality is harmful to the environment, but it does not receive strong empirical support. We discuss some econometric problems that may have caused mixed findings in the empirical literature and use appropriate tools to overcome the problems. Our empirical results using Indian time-series data show (i) that inequality leads to an increase in water pollution, (ii) that the magnitude of inequality is nearly as large as that of corruption, suggesting that reducing inequality is almost as important as curbing corruption in addressing water pollution challenges in India, and (iii) that increases in water pollution, in turn, widen inequality in India. Our results are robust to various sensitivity checks. We also find no evidence of the environmental Kuznets curve hypothesis for water pollution in India.

Highlights

In India, rivers are much more than bodies of water
We find that inequality leads to an increase in water pollution and the magnitude of inequality is nearly as large as that of corruption
India is notorious for its water quality and inequality, little attention has been paid to the question of whether these two phenomena are related

Summary

Introduction

In India, rivers are much more than bodies of water. Indian rivers are believed among the majority Hindus to be sacred, can wash away sins, and bring people closer to god. More than 10.5 million gallons of wastewater flow into rivers and other watercourses in India (Hirani & Dimble, 2019). Water pollution in India has been posing a serious threat to the health of its economy and society. More than 400,000 Indians die from diarrheal illness due to inadequate sanitation and hygiene (DeFrancis, 2011). It is estimated that the health costs of water pollution in India amounted to about $6.7–8.7 billion per year (Mani et al, 2012). India has spent billions of dollars on clean-up efforts, yet serious water pollution still persists Given the significant impact of water pollution on the economy and society, gaining a better understanding of the underlying causes of water pollution is critical

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