India is among the world lowest per capita greenhouse gas (GHG) emitters, but rapid increases are expected. At the same time, World Health Organization (WHO) estimates show that 424,000 die prematurely in Indian households each year from air pollution exposure due to solid fuel use. We analyze...

Pigou's conjecture was that under costly taxation public expenditures should not reach the point where marginal benefits equal marginal costs. In the treatment here, public expenditures (and environmental protection) may provide public goods for consumption but also collective inputs for...