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Clearer Skies Over ChinaReconciling Air Quality, Climate, and Economic Goals$
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Chris P. Nielsen and Mun S. Ho

Print publication date: 2013

Print ISBN-13: 9780262019880

Published to MIT Press Scholarship Online: January 2014

DOI: 10.7551/mitpress/9780262019880.001.0001

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The Economics of Environmental Policies in China

The Economics of Environmental Policies in China

Chapter:
(p.329) 9 The Economics of Environmental Policies in China
Source:
Clearer Skies Over China
Author(s):

Jing Cao

Mun S. Ho

Dale W. Jorgenson

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262019880.003.0009

This chapter recaps the book's overall objective, which has been to develop a methodology for analyzing environmental policies that recognizes the main elements of the complex web of interactions between economic activity, energy use, emissions, air quality, and damages to public health and agriculture. This chapter shows how the components in each of these previous chapters are combined with an economic analysis to provide an integrated framework to study the effects of emission control policy. It first describes how the impact of the 11th Five-Year Plan (FYP) SO2 control policy on economic growth and energy use was estimated using a multisector model of the Chinese economy. To do so, the chapter simulates the model twice for the output and energy use in each of 33 industries for each year during the 11th FYP. The first simulation is for a base case without the SO2 policy; the second simulation includes the policy requirements for the electric power sector. Comparing these two cases provides the impact of the SO2 policy on GDP, aggregate consumption, fuel use, and carbon emissions. Then the chapter compares these estimates of economic costs and other effects with the health and agricultural benefits that were calculated in the previous chapters.

Keywords:   environmental policies, economic activity, energy use, air quality, public health, economic policy, policy requirements

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