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Environmental Cost Analysis of the Relocation of Pollution-intensive Industries Case Study: Transfer of Ceramics Industry from Foshan to Qingyuan, Guangdong Province

Listed author(s):
  • Liu Li


    (College of Environmental Science and Engineering, South China University of Technology)

  • Li Bin


Registered author(s):

    In recent years, Chinese policy makers have tried to balance development in different regions of the country by relocating industrial production from prosperous zones to less developed areas. However, this type of industrial relocation is usually accompanied by the transfer of pollution problems. To shed more light on the costs and benefits of this important policy tool, this study looks at the relocation of ceramics production from one region of Guangdong Province to another. The study finds that the transfer of some ceramics production from populous Foshan to less densely populated Qingyuan would be an effective way of reducing the overall negative effect of the industry's air pollution. However, the study underlines the importance of using effective pollution-abatement technology. It recommends that such technology should be implemented in Foshan and in any new ceramics factories in Qingyuan. It finds that the value of the health benefits produced by installing this technology will greatly exceed the cost of putting the technology in place.

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    Paper provided by Economy and Environment Program for Southeast Asia (EEPSEA) in its series EEPSEA Research Report with number rr2010081.

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    Date of creation: Aug 2010
    Date of revision: Aug 2010
    Handle: RePEc:eep:report:rr2010081
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    1. Rob van der Veeren & Richard Tol, 2001. "Benefits of a Reallocation of Nitrate Emission Reductions in the Rhine River Basin," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(1), pages 19-41, January.
    2. He, Jie, 2006. "Pollution haven hypothesis and environmental impacts of foreign direct investment: The case of industrial emission of sulfur dioxide (SO2) in Chinese provinces," Ecological Economics, Elsevier, vol. 60(1), pages 228-245, November.
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