The Local and Global Benefits of Green Tax Policies in China

This article describes a multidisciplinary study of market-based policies for controlling air pollution in China. While previous studies have examined the costs and benefits of pollution control separately, this approach determines them together using an economy–environment model for China.

We employ air dispersion simulations and population maps to calculate health damages due to air pollution. This provides estimates of incremental damages for industry output and fuel use. Based on these marginal damages, we simulate the effect of "green taxes" on the economy and show that the environmental benefits exceed the aggregate costs, ignoring adjustment costs for individual sectors.

EfD Authors

Assistant Professor Jing Cao Research associate

Keywords

Centers

china

Type of publication

Peer reviewed

Reference

Cao, Jing, M. Ho, and D. Jorgenson (2009), "The Local and Global Benefits of Green Tax Policies in China", Review of Environmental Economics and Policy, 3(2), 189-208.

Environment for Development

Environment for Development