• According to a recent paper from the World Inequality Lab, India's wealthiest 1% now holds record-breaking shares of both income and wealth, ranking among the highest globally. By the fiscal year 2022-23, the income share of India's top 1% stood at 22.6%, while their wealth share soared to 40.1%. Notably, India's top 1% income share surpasses that of countries like South Africa, Brazil, and even the United States.
• Addressing this disparity requires a restructuring of the tax system to consider both income and wealth, alongside significant public investments in healthcare, education, and nutrition.
• These measures are essential to ensure that all Indians, not just the privileged few, can truly benefit from globalization. Additionally, implementing a "super tax" of 2% on the net wealth of the 167 wealthiest families in 2022-23 could generate revenue equivalent to 0.5% of the national income, thereby creating fiscal room to support such investments while also combatting inequality
• According to the paper, addressing the imbalance in wealth distribution and ensuring broader benefits from globalization requires a reform of the tax system to consider both income and wealth.
• Additionally, significant public investments in healthcare, education, and nutrition are necessary to empower the average Indian citizen, not just the affluent, to derive meaningful advantages from global economic trends.
• Introducing a "super tax" of 2% on the net wealth of the wealthiest 167 families in 2022-23 could generate revenue amounting to 0.5% of the national income, thereby creating fiscal flexibility to support such investments and combat inequality.
• The paper utilized data extracted from annual tax reports published by Indian income tax authorities spanning from 1922 to 2020 to analyze the distribution of top income earners.
• Over time, the proportion of national income accruing to the top 10% declined from 37% in 1951 to 30% by 1982 before steadily rising again.
• Since the early 1990s, the share of the top 10% has notably increased, almost reaching 60% in recent years, while the bottom 50% received only 15% of the national income in 2022-23.
• On average, the top 1% earns Rs 5.3 million, which is 23 times more than the average Indian income of Rs 0.23 million. Meanwhile, the bottom 50% and middle 40% have average incomes of Rs 71,000 (0.3 times the national average) and Rs 1,65,000 (0.7 times the national average), respectively.
• The wealthiest 10,000 individuals out of 92 million Indian adults earn an average of Rs 480 million, which is 2,069 times the average Indian income.
• The paper highlights the extreme skewness in income distribution, noting that one would need to be at nearly the 90th percentile to earn the average income in India.
• In 2022, the top 0.1% of earners in India received nearly 10% of the national income, while the top 0.01% and top 0.001% received 4.3% and 2.1% shares of the national income, respectively.
• The paper suggests that factors such as wage growth in the public and private sectors, particularly until the late 1990s, may have contributed to the sharp rise in the income shares of the top 1%.
• Additionally, the paper attributes the sustained depression of income shares for the bottom 50% and middle 40% to the lack of quality, widespread education focused on the masses rather than just the elite

Inequality, whether it be income, wealth, or opportunity, arises from a complex interplay of economic, social, and political factors. Here are some key reasons for inequality:

• Education Disparities: Unequal access to quality education perpetuates inequality by limiting opportunities for socio-economic advancement. Individuals from disadvantaged backgrounds often lack access to quality schools, resources, and educational support systems, which can hinder their ability to acquire skills and secure well-paying jobs.

• Labor Market Dynamics: Disparities in wages and employment opportunities contribute significantly to income inequality. Factors such as technological advancements, globalization, and shifts in labor market demand can lead to job polarization, where high-skilled workers benefit from increasing demand and wages, while low-skilled workers face stagnant wages and job insecurity.

• Wealth Concentration: Wealth begets wealth through mechanisms like inheritance, asset appreciation, and investment income. Consequently, those who start with more wealth have greater opportunities to accumulate additional wealth, widening the wealth gap over time.

• Tax Policies: Tax systems can either mitigate or exacerbate inequality. Regressive tax policies that disproportionately burden low-income households, coupled with loopholes and tax evasion among the wealthy, can contribute to wealth concentration. Progressive tax policies that redistribute wealth and income through measures like higher taxes on the wealthy and targeted social spending can help reduce inequality.

• Social Mobility Barriers: Inequality is reinforced when social mobility is limited, meaning individuals' ability to move up or down the socio-economic ladder is constrained. Factors such as discrimination, lack of access to capital, inadequate social safety nets, and barriers to entrepreneurship can hinder social mobility, trapping individuals in cycles of poverty or privilege.

• Discrimination and Bias: Discrimination based on factors like race, gender, ethnicity, sexual orientation, and disability perpetuates inequality by limiting opportunities and access to resources for marginalized groups. Structural biases embedded within institutions and societal norms can also exacerbate disparities in income, wealth, and opportunity.

• Globalization and Trade Policies: While globalization can lead to economic growth and development, it can also exacerbate inequality within and between countries. Trade policies that prioritize corporate interests over labor rights and environmental protections can lead to job displacement, wage stagnation, and exploitation, particularly in developing countries.

• Political Influence: Economic inequality often translates into unequal political influence, as wealthy individuals and corporations wield disproportionate power through campaign contributions, lobbying, and other forms of political influence. This can result in policies that favor the interests of the wealthy and perpetuate inequality

• Inequality in India experienced a decline following independence until the early 1980s, but has since been on the rise, with a notable surge since the early 2000s.
• Between the fiscal years 2014-15 and 2022-23, there has been a significant increase in top-end inequality, particularly concerning the concentration of wealth.
• As of 2022-23, the shares of income and wealth held by the top 1 percent are at their highest historical levels, with India's top 1 percent income share ranking among the highest globally, even surpassing that of countries like South Africa, Brazil, and the US.
• Wealth concentration is particularly pronounced within the top 1 per cent. In 2022-23, the top 1 per cent held 39.5 per cent of wealth, with 29 percentage points attributed to the top 0.1 per cent, 22 percentage points to the top 0.01 per cent, and 16 percentage points to the top 0.001 per cent.
• The sharp rise in the shares of the top 10 per cent since 1991 has occurred at the expense of the bottom 50 per cent and middle 40 per cent. The shares of the bottom 50 per cent decreased from 11 per cent during 1961-1981 to 6.9 per cent by 2002, remaining between 6-7 per cent over the next two decades without signs of recovery.
• In 1961, the shares of the bottom 50 percent and top 1 percent were identical; however, by 2022-23, the top 1 percent share had grown to over five times that of the bottom 50 percent.
• The paper suggests that the Indian income tax system may exhibit regressive tendencies when considering net wealth.
• To address these issues, a restructuring of the tax code to include both income and wealth, alongside broad-based public investments in health, education, and nutrition, is crucial to ensure that all Indians, not just the elite, can benefit from globalization.
• Implementing a "super tax" of 2 per cent on the net wealth of the 167 wealthiest families in 2022-23 could generate revenue equivalent to 0.5 per cent of national income, providing valuable fiscal resources to support such investments.
• Furthermore, it's noted that the quality of economic data in India is notably poor and has declined recently, suggesting that the estimates provided likely represent a lower bound to actual inequality levels

5. Way Forward

 

India’s richest people now have a larger share of national income than in more than a century. The top 1 per cent of Indians earns 22.6 per cent of the national income compared to 15 per cent earned by the bottom 50 per cent of the population, according to a study by the World Inequality Lab

 

 

For Prelims: Economic and Social Development For Mains: General Studies III: Inclusive growth and issues arising from it

Source: Indianexpress

SOLAR WASTE

 

 

1. Context

 

India generated about 100 kilotonnes (kt) of solar waste in the financial year (FY) 2022-2023, according to a new study published on Wednesday (March 20). The amount of solar waste produced by the country is expected to reach 600 kt by 2030

 

2. What is solar waste?

 

• Solar waste refers to the waste materials generated throughout the lifecycle of solar energy systems, primarily from the manufacturing, installation, operation, and decommissioning of solar panels and related equipment.
• This waste can include various materials such as broken or defective solar panels, packaging materials, electronic components, and other materials used in the construction and maintenance of solar energy systems.
• Managing and disposing of solar waste responsibly is important to minimize environmental impact and ensure the sustainability of solar energy as a renewable energy source
• Solar waste encompasses the byproducts resulting from both the production of solar modules and their utilization in the field over their lifespan, as indicated by the research. Manufacturing gives rise to two forms of waste: firstly, the scrap generated during production, and secondly, the waste originating from photovoltaic (PV) modules failing quality assessments.
• Conversely, field waste includes three distinct categories. Firstly, there's waste incurred during transportation and handling, where damaged modules are classified as waste. Secondly, waste is generated from the deterioration of solar modules during their operational life. Lastly, waste arises when modules reach their end-of-life and are no longer functional.

3.What are the findings of the study?

• The research specifically concentrated on waste from the field, omitting consideration of waste generated during manufacturing.
• Projections suggest that by 2030, India's current solar capacity will result in approximately 340 kt of waste, tripling the current amount.
• It's anticipated that 67 per cent of this waste will be generated in five states: Rajasthan, Gujarat, Karnataka, Tamil Nadu, and Andhra Pradesh.
• This is attributable to the fact that these states presently possess higher solar capacity compared to others, thus leading to increased solar waste production
• The cumulative waste from existing and new capacity (deployed between FY24 and FY30) will reach about 600 kt by 2030, according to the report. By 2050, it will increase to about 19,000 kt and 77 per cent of which will be generated from new capacities
• As the discarded modules contain minerals such as silicon, copper, tellurium, and cadmium — which have been classified as critical minerals for the country’s economic development and national security by the Indian government — the study focused on them also. The 340 kt waste expected to be produced by 2030 would consist of 10 kt of silicon, 12-18 tonnes of silver, and 16 tonnes of cadmium and tellurium

4. How to deal with solar waste?

 

Dealing with solar waste involves implementing strategies to minimize its generation, properly manage its disposal, and promote recycling and reuse wherever possible. Here are some key approaches:

• Reduce Waste Generation: Encourage manufacturers to adopt cleaner production methods that minimize waste generation during the manufacturing process. This could include optimizing manufacturing processes, improving quality control to reduce defective products, and adopting sustainable sourcing practices for raw materials.

• Recycling and Reuse: Promote the recycling of solar panels and related components to recover valuable materials such as silicon, glass, aluminum, and other metals. Establish collection and recycling programs to ensure that end-of-life solar panels are properly disposed of and recycled. Encourage the development of technologies for recycling solar panels efficiently and cost-effectively.

• Extended Producer Responsibility (EPR): Implement policies and regulations that hold solar panel manufacturers responsible for managing and disposing of their products at the end of their life. This could include requiring manufacturers to take back and recycle old solar panels, establishing recycling targets, and imposing financial penalties for non-compliance.

• Resource Recovery: Explore opportunities to recover energy from solar waste through processes such as incineration with energy recovery or anaerobic digestion. This can help offset disposal costs and reduce the environmental impact of waste management.

• Landfill Disposal: As a last resort, dispose of solar waste in landfills that are properly engineered and managed to minimize environmental contamination. However, this option should be avoided whenever possible, as it contributes to the depletion of finite landfill space and can pose environmental risks if not managed properly.

• Research and Innovation: Invest in research and development to explore new technologies and methods for managing solar waste more effectively. This could include advancements in recycling technologies, the development of biodegradable materials for solar panels, and innovative approaches to repurposing solar waste for other applications

5.Way Forward

 

Improper handling of solar waste can pose environmental risks. Solar panels contain materials like glass, aluminum, silicon, and sometimes even small amounts of lead and cadmium. If landfilled, these materials can leach into the soil and contaminate groundwater

 

 

For Prelims: Economic and Social Development For Mains: General Studies III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Source: Indianexpress

 

NUCLEAR ENERGY

 

 

1. Context

On March 21 2024, Brussels hosted the first-ever Nuclear Energy Summit, co-chaired by the Prime Minister of Belgium Alexander De Croo and the Director General of the International Atomic Energy Agency (IAEA) Rafael Mariano Grossi. Several world leaders joined the summit to highlight the role of nuclear energy in addressing climate change

 

2. What is Nuclear Energy?

Nuclear energy is a form of energy that is generated from the nucleus of an atom. It is released through two main processes: nuclear fission and nuclear fusion.

1. Nuclear Fission: Nuclear fission is the process by which the nucleus of a heavy atom, such as uranium-235 or plutonium-239, is split into two or more smaller nuclei, along with the release of a significant amount of energy. This process can be controlled and sustained in a nuclear reactor. In a nuclear power plant, the heat produced by nuclear fission is used to generate steam, which, in turn, drives turbines connected to generators. These generators produce electricity, which is then distributed for various purposes.

2. Nuclear Fusion: Nuclear fusion is the process of combining the nuclei of light atoms, such as isotopes of hydrogen (e.g., deuterium and tritium), to form a heavier nucleus, along with the release of energy. Fusion is the process that powers the sun and other stars. It has the potential to provide a nearly limitless and cleaner source of energy compared to fission. However, achieving controlled nuclear fusion on Earth has proven to be technologically challenging and has not yet been realized for widespread energy production.

3. Why do we need nuclear energy?

Nuclear energy serves several important purposes and is considered valuable for various reasons, which include:

1. Low Greenhouse Gas Emissions: Nuclear power plants produce electricity with very low greenhouse gas emissions. This makes nuclear energy an attractive option for countries aiming to reduce their carbon footprint and combat climate change. It provides a source of electricity that is relatively clean and doesn't release significant amounts of carbon dioxide or other greenhouse gases into the atmosphere.

2. Reliable Baseload Power: Nuclear energy provides a consistent and reliable source of electricity, known as baseload power. Unlike some renewable energy sources, such as wind and solar, which are intermittent and weather-dependent, nuclear power can operate continuously and meet the minimum electricity demand, ensuring grid stability.

3. Energy Security: Nuclear energy can contribute to energy security by diversifying a nation's energy sources. This reduces the reliance on fossil fuels, which can be subject to price volatility and supply disruptions due to geopolitical conflicts.

4. High Energy Density: Nuclear fission, the process used in nuclear power plants, has a high energy density, meaning that a small amount of nuclear fuel can produce a large amount of energy. This is particularly important in scenarios where space and resource constraints are factors.

5. Long Fuel Supply: Uranium, the primary fuel used in nuclear reactors, is relatively abundant and can provide a stable and long-term source of energy. Additionally, there is ongoing research into advanced nuclear technologies, such as breeder reactors, which can extend the use of nuclear fuel resources.

6. Reduced Air Pollution: In addition to lower greenhouse gas emissions, nuclear power plants do not produce the air pollutants associated with fossil fuel combustion, such as sulfur dioxide, nitrogen oxides, and particulate matter, which can have adverse health effects and contribute to air pollution.
7. High Energy Independence: Nations with nuclear power capabilities can reduce their dependence on imported fossil fuels. This enhances energy independence and can have economic and geopolitical benefits.

4.Types of Water reactor

Water reactors are a common type of nuclear reactor that use water as a coolant and/or moderator. There are several types of water reactors, including pressurized water reactors (PWRs) and boiling water reactors (BWRs). Here's an overview of these two main types:

1. Pressurized Water Reactors (PWRs):

   • Pressurized Water Reactors (PWRs) are the most prevalent type of commercial nuclear reactors in the world.
   • PWRs use ordinary water (light water) as both a coolant and a moderator. The water is kept at high pressure to prevent it from boiling.
   • The reactor core contains fuel rods, typically enriched uranium, and control rods to regulate the nuclear reaction.
   • The heat generated in the reactor core is transferred to a secondary loop of water (usually at lower pressure) through a heat exchanger. This secondary loop is used to produce steam to drive turbines and generate electricity.
   • PWRs are known for their safety features, as the high pressure in the primary coolant loop helps prevent the release of radioactive materials.

2. Boiling Water Reactors (BWRs):

   • Boiling Water Reactors (BWRs) also use water as a coolant and moderator, but they allow the water in the reactor core to boil.
   • The fuel rods are located in the reactor core, and as the nuclear fission reactions occur, they generate heat, causing the water in direct contact with the fuel rods to boil and produce steam.
   • The steam from the reactor core is directly used to drive turbines and generate electricity without the need for a separate heat exchanger.
   • BWRs are simpler in design but have different safety features compared to PWRs.

 

 5. Pressurized Heavy Water Reactor vs Light Water Reactor vs Prototype Fast Breeder Reactor

	Pressurized Heavy Water Reactor (PHWR)	Light Water Reactor (LWR)	Prototype Fast Breeder Reactor (FBR)
Coolant and Moderator	Uses heavy water (deuterium oxide, D2O) as both the coolant and moderator. Heavy water moderates the neutrons and helps sustain the nuclear chain reaction	Uses ordinary light water (H2O) as both the coolant and moderator. The light water absorbs some neutrons, which affects the reactivity of the reactor	Uses a liquid metal coolant (sodium or lead) and typically does not use a separate moderator. The fast neutrons produced in the reactor core drive the breeding of fissile material.
Fuel	Typically uses natural uranium or slightly enriched uranium as fuel. It relies on heavy water to sustain the chain reaction	Uses enriched uranium (typically U-235) or mixed oxide (MOX) fuel, which contains both uranium and plutonium. Light water reactors require enriched fuel to compensate for neutron absorption by the coolant	Uses plutonium or enriched uranium as fuel. The reactor is designed to create more fissile material (usually plutonium-239) than it consumes
Neutron Spectrum	Has a thermal neutron spectrum, where neutrons have lower energy and are moderated by heavy water	Also has a thermal neutron spectrum, where neutrons are moderated by light water	Operates with a fast neutron spectrum, meaning that neutrons have higher energy and are not significantly moderated. This allows for efficient breeding of fissile material
Efficiency	Relatively low thermal efficiency due to the neutron-absorbing properties of heavy water	Moderate thermal efficiency. Most commercial nuclear power plants worldwide are LWRs	High potential for efficiency as it can produce more fissile material than it consumes, making it a potential source of sustainable nuclear fuel.
Development and Use	Used in some countries like Canada and India for power generation	The most common reactor type for commercial power generation worldwide	Developed as a prototype for future breeder reactor technology. Few operational FBRs exist

 

 

6. Nuclear power plants in India?

The following are nuclear power plants in India:

1. Tarapur Atomic Power Station (TAPS):

   • Located in Tarapur, Maharashtra.
   • Features two boiling water reactors (BWRs) and two pressurized heavy water reactors (PHWRs).

2. Kakrapar Atomic Power Station (KAPS):

   • Located in Kakrapar, Gujarat.
   • Consists of two pressurized heavy water reactors (PHWRs).

3. Rajasthan Atomic Power Station (RAPS):

   • Located in Rawatbhata, Rajasthan.
   • Comprises several units, including both pressurized heavy water reactors (PHWRs) and pressurized heavy water reactors with enriched uranium (PHWRs-PU).

4. Madras Atomic Power Station (MAPS):

   • Located in Kalpakkam, Tamil Nadu.
   • Features two pressurized heavy water reactors (PHWRs) and a Prototype Fast Breeder Reactor (PFBR).

5. Narora Atomic Power Station (NAPS):

   • Located in Narora, Uttar Pradesh.
   • Houses two pressurized heavy water reactors (PHWRs).

6. Kaiga Generating Station (KGS):

   • Located in Kaiga, Karnataka.
   • Operates with pressurized heavy water reactors (PHWRs).

7. Kudankulam Nuclear Power Plant:

   • Located in Kudankulam, Tamil Nadu.
   • Currently, it has two VVER-1000 pressurized water reactors (PWRs) in operation, and additional units were under construction.

8. Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP):

   • Located in Fatehabad, Haryana.
   • Houses two pressurized heavy water reactors (PHWRs).

 

7. Way forward

The role of nuclear energy in a country's energy mix is often a subject of debate, and it depends on a combination of factors, including national energy policy, safety measures, public opinion, and the availability of alternative energy sources

 

 

For Prelims:  Current events of national and international importance and General Science For Mains:  General Studies III: Science and Technology- developments and their applications and effects in everyday life

Source: indianexpress