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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. Masui, Toshihiko, 2005. "Policy evaluations under environmental constraints using a computable general equilibrium model," European Journal of Operational Research, Elsevier, vol. 166(3), pages 843-855, November.
    2. Ping Hua, 2007. "Real exchange rate and manufacturing employment in China," Post-Print hal-00159151, HAL.
    3. 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.
    4. Yan Xu & Toshihiko Masui, 2008. "Assessing the impacts of an oil products tax in China using a computable general equilibrium model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 9(2), pages 81-105, June.
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    6. Toshihiko Masui, Tatsuya Hanaoka, Saeko Hikita, and Mikiko Kainuma, 2006. "Assessment of CO2 Reductions and Economic Impacts Considering Energy-Saving Investments," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 175-190.
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