In this chapter spreadsheet models are used to assess the environmental, fiscal, economic and incidence effects of a wide range of options for reducing fossil fuel use in India. Among the most effective options is ramping up the existing coal tax. Annually increasing the tax by INR 150 ($2.25) per ton of coal from 2017 to 2030 avoids over 270 000 air pollution deaths, raises revenue of 1 percent of GDP in 2030, reduces CO2 emissions by 12 percent, and generates net economic benefits of approximately 1 percent of GDP. The policy is mildly progressive and (at least initially) imposes a relatively modest cost burden on industries.
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