IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i18p4895-d264898.html
   My bibliography  Save this article

On the Use of Market-Based Instruments to Reduce Air Pollution in Asia

Author

Listed:
  • Jessica Coria

    (Department of Economics, University of Gothenburg, 40530 Gothenburg, Sweden)

  • Gunnar Köhlin

    (Environment for Development Initiative, University of Gothenburg, 40530 Gothenburg, Sweden
    School of Economics, University of Cape Town, Cape Town 7700, South Africa)

  • Jintao Xu

    (National School of Development, Peking University, Beijing 100871, China)

Abstract

The high rates of economic activity and environmental degradation in Asia demand the implementation of creative and cost-effective environmental policy instruments that provide polluters with more flexibility to find least-cost solutions to pollution reduction. Despite their many theoretical advantages, the use of market-based instruments (MBIs) is a relatively recent phenomenon in Asia, partly due to policymakers being unfamiliar with MBIs and countries lacking the institutional capacity to implement and enforce them. This paper reviews the Asian experience with MBIs intended to reduce air pollution emissions and synthetizes lessons to be drawn and areas for improvement.

Suggested Citation

  • Jessica Coria & Gunnar Köhlin & Jintao Xu, 2019. "On the Use of Market-Based Instruments to Reduce Air Pollution in Asia," Sustainability, MDPI, vol. 11(18), pages 1-23, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:18:p:4895-:d:264898
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/18/4895/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/18/4895/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Severin Borenstein & James Bushnell & Frank A. Wolak & Matthew Zaragoza-Watkins, 2019. "Expecting the Unexpected: Emissions Uncertainty and Environmental Market Design," American Economic Review, American Economic Association, vol. 109(11), pages 3953-3977, November.
    2. Jin, Yanhong & Wang, Hua & Wheeler, David, 2010. "Environmental performance rating and disclosure : an empirical investigation of China's green watch program," Policy Research Working Paper Series 5420, The World Bank.
    3. Nguyen, Thu Lan T. & Gheewala, Shabbir H. & Garivait, Savitri, 2007. "Fossil energy savings and GHG mitigation potentials of ethanol as a gasoline substitute in Thailand," Energy Policy, Elsevier, vol. 35(10), pages 5195-5205, October.
    4. Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB), 2015. "Fossil Fuel Subsidies in Indonesia: Trends, Impacts, and Reforms," ADB Reports RPT157694-2, Asian Development Bank (ADB).
    5. Richard Schmalensee & Robert N. Stavins, 2017. "Lessons Learned from Three Decades of Experience with Cap and Trade," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(1), pages 59-79.
    6. Xing Chen & Jintao Xu, 2018. "Carbon Trading Scheme in the People's Republic of China: Evaluating the Performance of Seven Pilot Projects," Asian Development Review, MIT Press, vol. 35(2), pages 131-152, September.
    7. Wong, S.L. & Ngadi, Norzita & Abdullah, Tuan Amran Tuan & Inuwa, I.M., 2015. "Recent advances of feed-in tariff in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 42-52.
    8. Bhandari, Divita & Shrimali, Gireesh, 2018. "The perform, achieve and trade scheme in India: An effectiveness analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1286-1295.
    9. Troncoso, Karin & Soares da Silva, Agnes, 2017. "LPG fuel subsidies in Latin America and the use of solid fuels to cook," Energy Policy, Elsevier, vol. 107(C), pages 188-196.
    10. Aggarwal, Shubham & Kumar, Sudhanshu & Tiwari, Manoj Kumar, 2018. "Decision support system for Pradhan Mantri Ujjwala Yojana," Energy Policy, Elsevier, vol. 118(C), pages 455-461.
    11. Yinger Zheng & Haixia Zheng & Xinyue Ye, 2016. "Using Machine Learning in Environmental Tax Reform Assessment for Sustainable Development: A Case Study of Hubei Province, China," Sustainability, MDPI, vol. 8(11), pages 1-20, November.
    12. Ming, Zeng & Ximei, Liu & Na, Li & Song, Xue, 2013. "Overall review of renewable energy tariff policy in China: Evolution, implementation, problems and countermeasures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 260-271.
    13. Kumar, S. & Shrestha, Pujan & Abdul Salam, P., 2013. "A review of biofuel policies in the major biofuel producing countries of ASEAN: Production, targets, policy drivers and impacts," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 822-836.
    14. Acharya, Rajesh H. & Sadath, Anver C., 2017. "Implications of energy subsidy reform in India," Energy Policy, Elsevier, vol. 102(C), pages 453-462.
    15. Wang, Hua, 2002. "Pollution regulation and abatement efforts: evidence from China," Ecological Economics, Elsevier, vol. 41(1), pages 85-94, April.
    16. Gupta, Monika & Bandyopadhyay, Kaushik Ranjan & Singh, Sanjay K., 2019. "Measuring effectiveness of carbon tax on Indian road passenger transport: A system dynamics approach," Energy Economics, Elsevier, vol. 81(C), pages 341-354.
    17. Tongsopit, Sopitsuda & Greacen, Chris, 2013. "An assessment of Thailand's feed-in tariff program," Renewable Energy, Elsevier, vol. 60(C), pages 439-445.
    18. Dasgupta, Susmita & Laplante, Benoit & Mamingi, Nlandu & Wang, Hua, 2001. "Inspections, pollution prices, and environmental performance: evidence from China," Ecological Economics, Elsevier, vol. 36(3), pages 487-498, March.
    19. J. Lelieveld & J. S. Evans & M. Fnais & D. Giannadaki & A. Pozzer, 2015. "The contribution of outdoor air pollution sources to premature mortality on a global scale," Nature, Nature, vol. 525(7569), pages 367-371, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ackerschott, Adriana & Kohlhase, Esther & Vollmer, Anita & Hörisch, Jacob & von Wehrden, Henrik, 2023. "Steering of land use in the context of sustainable development: A systematic review of economic instruments," Land Use Policy, Elsevier, vol. 129(C).
    2. Yuan Shi & Alexis Kai-Hon Lau & Edward Ng & Hung-Chak Ho & Muhammad Bilal, 2021. "A Multiscale Land Use Regression Approach for Estimating Intraurban Spatial Variability of PM 2.5 Concentration by Integrating Multisource Datasets," IJERPH, MDPI, vol. 19(1), pages 1-16, December.
    3. Zhu, Dandan & Chen, Ke & Sun, Chuanwang & Lyu, Chaofeng, 2023. "Does environmental pollution liability insurance promote environmental performance? Firm-level evidence from quasi-natural experiment in China," Energy Economics, Elsevier, vol. 118(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wong, S.L. & Ngadi, N. & Abdullah, T.A.T. & Inuwa, I.M., 2015. "Current state and future prospects of plastic waste as source of fuel: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1167-1180.
    2. Hang XIONG & Chloé DUVIVIER, 2011. "Transboundary Pollution in China: A Study of Polluting Firms' Location Choices in Hebei Province," Working Papers 201117, CERDI.
    3. Yanrui Wu, 2007. "Environmental Efficiency and Its Determinants in China’s Regional Economies," Economics Discussion / Working Papers 07-21, The University of Western Australia, Department of Economics.
    4. Barroco, Jose & Herrera, Maria, 2019. "Clearing barriers to project finance for renewable energy in developing countries: A Philippines case study," Energy Policy, Elsevier, vol. 135(C).
    5. Wang, Hua & Wheeler, David, 2005. "Financial incentives and endogenous enforcement in China's pollution levy system," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 174-196, January.
    6. James Roumasset & Kimberly Burnett & Hua Wang, 2007. "Is China’s Growth Sustainable?," Working Papers 200723, University of Hawaii at Manoa, Department of Economics.
    7. Ohlendorf, Nils & Flachsland, Christian & Nemet, Gregory F. & Steckel, Jan Christoph, 2022. "Carbon price floors and low-carbon investment: A survey of German firms," Energy Policy, Elsevier, vol. 169(C).
    8. Michael Pollitt & Geoffroy Dolphin, 2021. "Should the EU ETS be extended to road transport and heating fuels?," Working Papers EPRG2119, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    9. Setiawan, Andri D. & Dewi, Marmelia P. & Jafino, Bramka Arga & Hidayatno, Akhmad, 2022. "Evaluating feed-in tariff policies on enhancing geothermal development in Indonesia," Energy Policy, Elsevier, vol. 168(C).
    10. Inés Macho-Stadler, 2008. "Environmental regulation: choice of instruments under imperfect compliance," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(1), pages 1-21, March.
    11. Nusirat Ojuolape Gold & Fauziah Md. Taib & Yaxin Ma, 2022. "Firm-Level Attributes, Industry-Specific Factors, Stakeholder Pressure, and Country-Level Attributes: Global Evidence of What Inspires Corporate Sustainability Practices and Performance," Sustainability, MDPI, vol. 14(20), pages 1-28, October.
    12. Lanzi, Elisa & Dellink, Rob & Chateau, Jean, 2018. "The sectoral and regional economic consequences of outdoor air pollution to 2060," Energy Economics, Elsevier, vol. 71(C), pages 89-113.
    13. Ritter, Hendrik & Zimmermann, Karl, 2019. "Cap-and-Trade Policy vs. Carbon Taxation: Of Leakage and Linkage," EconStor Preprints 197796, ZBW - Leibniz Information Centre for Economics.
    14. Héctor Jorquera & Ana María Villalobos, 2020. "Combining Cluster Analysis of Air Pollution and Meteorological Data with Receptor Model Results for Ambient PM 2.5 and PM 10," IJERPH, MDPI, vol. 17(22), pages 1-25, November.
    15. Hosan, Shahadat & Rahman, Md Matiar & Karmaker, Shamal Chandra & Saha, Bidyut Baran, 2023. "Energy subsidies and energy technology innovation: Policies for polygeneration systems diffusion," Energy, Elsevier, vol. 267(C).
    16. Zhengxia He & Shichun Xu & Wenxing Shen & Meiling Wang & Cunfang Li, 2019. "Exploring external and internal pressures on the environmental behavior of paper enterprises in China: A qualitative study," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 951-969, September.
    17. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    18. Korrakot Phomsoda & Nattapong Puttanapong & Mongkut Piantanakulchai, 2021. "Economic Impacts of Thailand’s Biofuel Subsidy Reallocation Using a Dynamic Computable General Equilibrium (CGE) Model," Energies, MDPI, vol. 14(8), pages 1-21, April.
    19. Heijmans, Roweno J.R.K. & Engström, Max, 2024. "Time Horizons and Emissions Trading," Discussion Papers 2024/2, Norwegian School of Economics, Department of Business and Management Science.
    20. Piris-Cabezas, Pedro & Lubowski, Ruben N. & Leslie, Gabriela, 2023. "Estimating the potential of international carbon markets to increase global climate ambition," World Development, Elsevier, vol. 167(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:18:p:4895-:d:264898. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.