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Socioeconomic burden of air pollution in China: Province-level analysis based on energy economic model

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  • Zhang, Xu
  • Ou, Xunmin
  • Yang, Xi
  • Qi, Tianyu
  • Nam, Kyung-Min
  • Zhang, Da
  • Zhang, Xiliang

Abstract

In this study, we apply to China the China Regional Energy Model, developed as part of the Regional Emissions Air-Quality Climate Health (REACH) assessment framework, and estimate PM2.5-associated health costs. We estimate that, in 2015, exposure to PM2.5 caused a nationwide welfare loss of US$248 billion (3.6% of the baseline welfare level). Over half the cost is from mortalities associated with chronic exposure, followed by broader economic loss (38%) and direct loss from short-term exposure (9%). The cost varies among provinces (0.5%–5.8% of the baseline welfare level), due to subnational heterogeneity in air quality, population density, and income levels. The cost in absolute terms is large in populous, coastal provinces, such as Shandong, Jiangsu, Zhejiang, and Guangdong, but when the local economy size is controlled for, the Greater Beijing area and central inland provinces also suffer large welfare losses in relative terms.

Suggested Citation

  • Zhang, Xu & Ou, Xunmin & Yang, Xi & Qi, Tianyu & Nam, Kyung-Min & Zhang, Da & Zhang, Xiliang, 2017. "Socioeconomic burden of air pollution in China: Province-level analysis based on energy economic model," Energy Economics, Elsevier, vol. 68(C), pages 478-489.
    • Handle: RePEc:eee:eneeco:v:68:y:2017:i:c:p:478-489
    DOI: 10.1016/j.eneco.2017.10.013
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    5. Xiaoyan Yang & Changshun Li & Muhammad Bilal & Shaofei Jin, 2022. "Fresh Air–Natural Microclimate Comfort Index: A New Tourism Climate Index Applied in Chinese Scenic Spots," Sustainability, MDPI, vol. 14(3), pages 1-20, February.
    6. Beidi Diao & Lei Ding & Qiong Zhang & Junli Na & Jinhua Cheng, 2020. "Impact of Urbanization on PM 2.5 -Related Health and Economic Loss in China 338 Cities," IJERPH, MDPI, vol. 17(3), pages 1-18, February.
    7. Lin, Boqiang & Li, Zhensheng, 2021. "Does natural gas pricing reform establish an effective mechanism in China: A policy evaluation perspective," Applied Energy, Elsevier, vol. 282(PA).
    8. Li, Nan & Chen, Wenying & Zhang, Qiang, 2020. "Development of China TIMES-30P model and its application to model China's provincial low carbon transformation," Energy Economics, Elsevier, vol. 92(C).
    9. Cao, Chaoji & Cui, XueQin & Cai, Wenjia & Wang, Can & Xing, Lu & Zhang, Ning & Shen, Shudong & Bai, Yuqi & Deng, Zhu, 2019. "Incorporating health co-benefits into regional carbon emission reduction policy making: A case study of China’s power sector," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    10. Ai, Hongshan & Wang, Mengyuan & Zhang, Yue-Jun & Zhu, Tian-Tian, 2022. "How does air pollution affect urban innovation capability? Evidence from 281 cities in China," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 166-178.
    11. Gu, Yan & Ho, Kung-Cheng & Xia, Senmao & Yan, Cheng, 2022. "Do public environmental concerns promote new energy enterprises' development? Evidence from a quasi-natural experiment," Energy Economics, Elsevier, vol. 109(C).
    12. Luo, Xiangyu & Jiang, Peng & Yang, Jingyi & Jin, Jing & Yang, Jun, 2021. "Simulating PM2.5 removal in an urban ecosystem based on the social-ecological model framework," Ecosystem Services, Elsevier, vol. 47(C).
    13. Kyung-Min Nam & Xu Zhang & Min Zhong & Eri Saikawa & Xiliang Zhang, 2019. "Health effects of ozone and particulate matter pollution in China: a province-level CGE analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(2), pages 269-293, October.
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    16. Liao, Liping & Du, Minzhe & Chen, Zhongfei, 2021. "Air pollution, health care use and medical costs: Evidence from China," Energy Economics, Elsevier, vol. 95(C).

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    More about this item

    Keywords

    Air pollution; Socioeconomic burden; China; Computable general equilibrium;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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