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Local air pollutant emission reduction and ancillary carbon benefits of SO2 control policies: Application of AIM/CGE model to China

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  • Xu, Yan
  • Masui, Toshihiko

Abstract

While a great deal of literature has been published in recent years on the ancillary benefits of greenhouse gas mitigation (e.g., reductions in local air pollution), less attention has been focused on the climate benefits of local air pollution strategies themselves. Local air pollution is, however, a more immediate issue now faced by developing countries. This study assesses the impacts on local air pollutant emission reduction and ancillary CO2 emission reduction of SO2 control policies in China, such as a sulphur tax, SO2 total emissions control (TEC), and improvement of energy efficiency, based on the Asia-Pacific Integrated Model (AIM)/Computable General Equilibrium (CGE) country model. The simulation period is from 1997 to 2020. Major conclusions include the following: an SO2 emission cap will help to control SO2 emissions, but will result in a large GDP loss; the role of a SO2 emission tax at the present level is very limited; and an ancillary carbon reduction benefit can be achieved through the introduction of SO2 control policies in China.

Suggested Citation

  • Xu, Yan & Masui, Toshihiko, 2009. "Local air pollutant emission reduction and ancillary carbon benefits of SO2 control policies: Application of AIM/CGE model to China," European Journal of Operational Research, Elsevier, vol. 198(1), pages 315-325, October.
  • Handle: RePEc:eee:ejores:v:198:y:2009:i:1:p:315-325
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    References listed on IDEAS

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    1. Ping Hua, 2007. "Real exchange rate and manufacturing employment in China," Post-Print hal-00159151, HAL.
    2. Wang, Yan & Yao, Yudong, 2003. "Sources of China's economic growth 1952-1999: incorporating human capital accumulation," China Economic Review, Elsevier, vol. 14(1), pages 32-52.
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    Cited by:

    1. Wang, Lining & Patel, Pralit L. & Yu, Sha & Liu, Bo & McLeod, Jeff & Clarke, Leon E. & Chen, Wenying, 2016. "Win–Win strategies to promote air pollutant control policies and non-fossil energy target regulation in China," Applied Energy, Elsevier, vol. 163(C), pages 244-253.
    2. Guo, Zhengquan & Zhang, Xingping & Zheng, Yuhua & Rao, Rao, 2014. "Exploring the impacts of a carbon tax on the Chinese economy using a CGE model with a detailed disaggregation of energy sectors," Energy Economics, Elsevier, vol. 45(C), pages 455-462.
    3. Nam, Kyung-Min & Waugh, Caleb J. & Paltsev, Sergey & Reilly, John M. & Karplus, Valerie J., 2014. "Synergy between pollution and carbon emissions control: Comparing China and the United States," Energy Economics, Elsevier, vol. 46(C), pages 186-201.
    4. Thepkhun, Panida & Limmeechokchai, Bundit & Fujimori, Shinichiro & Masui, Toshihiko & Shrestha, Ram M., 2013. "Thailand's Low-Carbon Scenario 2050: The AIM/CGE analyses of CO2 mitigation measures," Energy Policy, Elsevier, vol. 62(C), pages 561-572.
    5. Haijun Zhao & Weichun Ma & Hongjia Dong & Ping Jiang, 2017. "Analysis of Co-Effects on Air Pollutants and CO 2 Emissions Generated by End-of-Pipe Measures of Pollution Control in China’s Coal-Fired Power Plants," Sustainability, MDPI, Open Access Journal, vol. 9(4), pages 1-19, March.
    6. Wang, Ke & Zhang, Xian & Yu, Xueying & Wei, Yi-Ming & Wang, Bin, 2016. "Emissions trading and abatement cost savings: An estimation of China's thermal power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1005-1017.
    7. Yu, Fanxian & Chen, Jining & Sun, Fu & Zeng, Siyu & Wang, Can, 2011. "Trend of technology innovation in China's coal-fired electricity industry under resource and environmental constraints," Energy Policy, Elsevier, vol. 39(3), pages 1586-1599, March.
    8. repec:eee:ecomod:v:252:y:2013:i:c:p:44-52 is not listed on IDEAS
    9. Bao, Qin & Tang, Ling & Zhang, ZhongXiang & Wang, Shouyang, 2013. "Impacts of border carbon adjustments on China's sectoral emissions: Simulations with a dynamic computable general equilibrium model," China Economic Review, Elsevier, vol. 24(C), pages 77-94.
    10. Bowen Xiao & Dongxiao Niu & Xiaodan Guo & Xiaomin Xu, 2015. "The Impacts of Environmental Tax in China: A Dynamic Recursive Multi-Sector CGE Model," Energies, MDPI, Open Access Journal, vol. 8(8), pages 1-28, July.
    11. Bao, Qin & Tang, Ling & Zhang, ZhingXiang & Qiao, Han & Wang, Shouyang, 2012. "Impact of Border Carbon Adjustments on China’s Sectoral Emissions: Simulations with a Dynamic Computable General Equilibirum Model," Working Papers 249391, Australian National University, Centre for Climate Economics & Policy.
    12. Mahmood, Arshad & Marpaung, Charles O.P., 2014. "Carbon pricing and energy efficiency improvement -- why to miss the interaction for developing economies? An illustrative CGE based application to the Pakistan case," Energy Policy, Elsevier, vol. 67(C), pages 87-103.
    13. Dai, Hancheng & Masui, Toshihiko & Matsuoka, Yuzuru & Fujimori, Shinichiro, 2011. "Assessment of China's climate commitment and non-fossil energy plan towards 2020 using hybrid AIM/CGE model," Energy Policy, Elsevier, vol. 39(5), pages 2875-2887, May.
    14. Wen, Zongguo & Chen, Min & Meng, Fanxin, 2015. "Evaluation of energy saving potential in China's cement industry using the Asian-Pacific Integrated Model and the technology promotion policy analysis," Energy Policy, Elsevier, vol. 77(C), pages 227-237.
    15. Hong-Mei Deng & Qiao-Mei Liang, 2017. "Assessing the synergistic reduction effects of different energy environmental taxes: the case of China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(2), pages 811-827, January.

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