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Air quality co-benefits of carbon pricing in China

Author

Listed:
  • Mingwei Li

    (Massachusetts Institute of Technology)

  • Da Zhang

    (Massachusetts Institute of Technology
    Tsinghua University)

  • Chiao-Ting Li

    (Massachusetts Institute of Technology)

  • Kathleen M. Mulvaney

    (Massachusetts Institute of Technology)

  • Noelle E. Selin

    (Massachusetts Institute of Technology
    Massachusetts Institute of Technology)

  • Valerie J. Karplus

    (Massachusetts Institute of Technology
    Massachusetts Institute of Technology)

Abstract

Climate policies targeting energy-related CO2 emissions, which act on a global scale over long time horizons, can result in localized, near-term reductions in both air pollution and adverse human health impacts. Focusing on China, the largest energy-using and CO2-emitting nation, we develop a cross-scale modelling approach to quantify these air quality co-benefits, and compare them to the economic costs of climate policy. We simulate the effects of an illustrative climate policy, a price on CO2 emissions. In a policy scenario consistent with China’s recent pledge to reach a peak in CO2 emissions by 2030, we project that national health co-benefits from improved air quality would partially or fully offset policy costs depending on chosen health valuation. Net health co-benefits are found to rise with increasing policy stringency.

Suggested Citation

  • Mingwei Li & Da Zhang & Chiao-Ting Li & Kathleen M. Mulvaney & Noelle E. Selin & Valerie J. Karplus, 2018. "Air quality co-benefits of carbon pricing in China," Nature Climate Change, Nature, vol. 8(5), pages 398-403, May.
    • Handle: RePEc:nat:natcli:v:8:y:2018:i:5:d:10.1038_s41558-018-0139-4
    DOI: 10.1038/s41558-018-0139-4
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    Cited by:

    1. Yue, Shen & Munir, Irfan Ullah & Hyder, Shabir & Nassani, Abdelmohsen A. & Qazi Abro, Muhammad Moinuddin & Zaman, Khalid, 2020. "Sustainable food production, forest biodiversity and mineral pricing: Interconnected global issues," Resources Policy, Elsevier, vol. 65(C).
    2. Jiang, Xueting, 2023. "Rapid decarbonization in the Chinese electric power sector and air pollution reduction Co-benefits in the Post-COP26 Era," Resources Policy, Elsevier, vol. 82(C).
    3. Cao, Libin & Tang, Yiqi & Cai, Bofeng & Wu, Pengcheng & Zhang, Yansen & Zhang, Fengxue & Xin, Bo & Lv, Chen & Chen, Kai & Fang, Kai, 2021. "Was it better or worse? Simulating the environmental and health impacts of emissions trading scheme in Hubei province, China," Energy, Elsevier, vol. 217(C).
    4. Yu, Zhongjue & Geng, Yong & Calzadilla, Alvaro & Bleischwitz, Raimund, 2022. "China's unconventional carbon emissions trading market: The impact of a rate-based cap in the power generation sector," Energy, Elsevier, vol. 255(C).
    5. Li, Lili & Taeihagh, Araz, 2020. "An in-depth analysis of the evolution of the policy mix for the sustainable energy transition in China from 1981 to 2020," Applied Energy, Elsevier, vol. 263(C).
    6. Sturm, Bodo & Pei, Jiansuo & Wang, Ran & Löschel, Andreas & Zhao, Zhongxiu, 2019. "Conditional cooperation in case of a global public good – Experimental evidence from climate change mitigation in Beijing," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    7. Zhang, Ning & Wang, Shuo, 2024. "Can China's regional carbon market pilots improve power plants' energy efficiency?," Energy Economics, Elsevier, vol. 129(C).
    8. Lei, Heng & Xue, Minggao & Liu, Huiling, 2022. "Probability distribution forecasting of carbon allowance prices: A hybrid model considering multiple influencing factors," Energy Economics, Elsevier, vol. 113(C).
    9. Sileci, Lorenzo, 2023. "Carbon pricing with regressive co-benefits: evidence from British Columbia’s carbon tax," LSE Research Online Documents on Economics 121047, London School of Economics and Political Science, LSE Library.
    10. Xian, Botong & Wang, Yanan & Xu, Yalin & Wang, Juan & Li, Xiaoyan, 2024. "Assessment of the co-benefits of China's carbon trading policy on carbon emissions reduction and air pollution control in multiple sectors," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1322-1335.
    11. 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).
    12. Sara F. Camilleri & Anastasia Montgomery & Maxime A. Visa & Jordan L. Schnell & Zachariah E. Adelman & Mark Janssen & Emily A. Grubert & Susan C. Anenberg & Daniel E. Horton, 2023. "Air quality, health and equity implications of electrifying heavy-duty vehicles," Nature Sustainability, Nature, vol. 6(12), pages 1643-1653, December.
    13. Li, Jianglong & Ho, Mun Sing, 2022. "Indirect cost of renewable energy: Insights from dispatching," Energy Economics, Elsevier, vol. 105(C).
    14. Cui, Lixin & Dong, Ruxue & Mu, Yunguo & Shen, Zhiyang & Xu, Jiatong, 2022. "How policy preferences affect the carbon shadow price in the OECD," Applied Energy, Elsevier, vol. 311(C).
    15. Pang, Jun & Timilsina, Govinda, 2021. "How would an emissions trading scheme affect provincial economies in China: Insights from a computable general equilibrium model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    16. Chang, Shiyan & Yang, Xi & Zheng, Haotian & Wang, Shuxiao & Zhang, Xiliang, 2020. "Air quality and health co-benefits of China's national emission trading system," Applied Energy, Elsevier, vol. 261(C).
    17. Wan, Panbing & Zhang, ZhongXiang & Chen, Lin, 2024. "Environmental co-benefits of climate mitigation: Evidence from clean development mechanism projects in China," China Economic Review, Elsevier, vol. 85(C).
    18. Zhang, Wen-Wen & Zhao, Bin & Ding, Dian & Sharp, Basil & Gu, Yu & Xu, Shi-Chun & Xing, Jia & Wang, Shu-Xiao & Liou, Kuo-Nan & Rao, Lan-Lan, 2021. "Co-benefits of subnationally differentiated carbon pricing policies in China: Alleviation of heavy PM2.5 pollution and improvement in environmental equity," Energy Policy, Elsevier, vol. 149(C).
    19. Wei, Xinyang & Tong, Qing & Magill, Iain & Vithayasrichareon, Peerapat & Betz, Regina, 2020. "Evaluation of potential co-benefits of air pollution control and climate mitigation policies for China's electricity sector," Energy Economics, Elsevier, vol. 92(C).
    20. Zhang, Hui & Zhang, Bing, 2020. "The unintended impact of carbon trading of China's power sector," Energy Policy, Elsevier, vol. 147(C).
    21. Gómez-Villegas, Mauricio & Larrinaga, Carlos, 2023. "A critical accounting project for Latin America? Objects of knowledge or ways of knowing," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 93(C).
    22. Cao, Jing & Ho, Mun S. & Ma, Rong & Teng, Fei, 2021. "When carbon emission trading meets a regulated industry: Evidence from the electricity sector of China," Journal of Public Economics, Elsevier, vol. 200(C).
    23. Huang, Xiaodan & Chang, Shiyan & Zheng, Dingqian & Zhang, Xiliang, 2020. "The role of BECCS in deep decarbonization of China's economy: A computable general equilibrium analysis," Energy Economics, Elsevier, vol. 92(C).
    24. Sebastian Rauner & Jérôme Hilaire & David Klein & Jessica Strefler & Gunnar Luderer, 2020. "Air quality co-benefits of ratcheting up the NDCs," Climatic Change, Springer, vol. 163(3), pages 1481-1500, December.
    25. Struck, Clemens C., 2022. "Wealth, price levels, and product quality," International Economics, Elsevier, vol. 170(C), pages 32-48.

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