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Presenter: Prof. Prasanna Tantri , Associate Professor, ISB
Title: The Impact of PM Swanidhi Scheme: Preliminary findings from a survey of 5,141 street vendors across the country
PM Swanidhi is a government of India initiative aimed at increasing access to formal credit for the poor. In the first leg of the scheme, it offers a collateral-free loan of INR. 10,000 at a subsidized interest rate. The scheme offers additional incentives for the adoption of digital payments.
Presenter: Prof. Madhu Viswanathan, Associate Professor, ISB
Abstract: CO2 emitted by the commercial aviation industry represents 2% of global emissions and is expected to increase three-fold over the next 25 years. Environmental advocates propose using carbon taxes to incentivize cleaner technologies and decreased consumption in the industry. This paper analyzes the effect of such a tax on the US domestic commercial aviation industry. Using historical shifts in long-run fuel prices, we study the elasticity of fuel prices on efficiency and on consumption. We find no meaningful effect on efficiency and an elasticity of fuel prices on consumption of between -0.07 and -0.2. Together the findings imply a $40/mT of CO2 tax would induce a 1.2% reduction in CO2 emissions. We estimate the elasticity of long-run fuel prices on consumption using a top-down approach that uses national accounts and a bottom-up approach that models demand and pricing decisions at the route level. The route-level analysis allows for welfare calculations, from which we estimate a welfare loss per abated emission of $937/mT. Allowing for differential taxes across cities would reduce this loss to $786/mT. Since the social cost of abated pollution is between $35/mT and $60/mT, the analysis suggests a carbon tax is detrimental to society.