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The Local and Global Benefits of Green Tax Policies in China

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  • Jing Cao
  • Mun S. Ho
  • Dale W. Jorgenson

Abstract

This article describes a multidisciplinary study of market-based policies for controlling air pollution in China. While previous studies have examined the costs and benefits of pollution control separately, this approach determines them together using an economy--environment model for China. We employ air dispersion simulations and population maps to calculate health damages due to air pollution. This provides estimates of incremental damages for industry output and fuel use. Based on these marginal damages, we simulate the effect of "green taxes" on the economy and show that the environmental benefits exceed the aggregate costs, ignoring adjustment costs for individual sectors. Copyright 2009, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/reep/rep005
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Bibliographic Info

Article provided by Association of Environmental and Resource Economists in its journal Review of Environmental Economics and Policy.

Volume (Year): 3 (2009)
Issue (Month): 2 (Summer)
Pages: 189-208

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Handle: RePEc:oup:renvpo:v:3:y:2009:i:2:p:189-208

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Cited by:
  1. Zhang, Junjie & Wang, Can, 2011. "Co-benefits and additionality of the clean development mechanism: An empirical analysis," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 140-154, September.

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