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The Local and Global Benefits of Green Tax Policies in China

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  • Jing Cao
  • Mun S. Ho
  • Dale W. Jorgenson

Abstract

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. Copyright 2009, Oxford University Press.

Suggested Citation

  • Jing Cao & Mun S. Ho & Dale W. Jorgenson, 2009. "The Local and Global Benefits of Green Tax Policies in China," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 3(2), pages 189-208, Summer.
    • Handle: RePEc:oup:renvpo:v:3:y:2009:i:2:p:189-208
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    Citations

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    Cited by:

    1. Wesseh, Presley K. & Lin, Boqiang, 2019. "Environmental policy and ‘double dividend’ in a transitional economy," Energy Policy, Elsevier, vol. 134(C).
    2. Brantly Callaway & Tong Li & Joel Rodrigue & Yuya Sasaki & Yong Tan, 2024. "Regulation, Emissions and Productivity: Evidence from China’s Eleventh Five-Year Plan," Staff Working Papers 24-7, Bank of Canada.
    3. Freire-González, Jaume & Puig-Ventosa, Ignasi, 2019. "Reformulating taxes for an energy transition," Energy Economics, Elsevier, vol. 78(C), pages 312-323.
    4. Dirk WILLENBOCKEL & Scott MCDONALD, 2008. "India, Brazil, South Africa and China: Is the South Big Enough?," EcoMod2008 23800154, EcoMod.
    5. Jaume Freire-González & Mun S. Ho, 2018. "Environmental Fiscal Reform and the Double Dividend: Evidence from a Dynamic General Equilibrium Model," Sustainability, MDPI, vol. 10(2), pages 1-18, February.
    6. Yana Jin & Henrik Andersson & Shiqiu Zhang, 2016. "Air Pollution Control Policies in China: A Retrospective and Prospects," IJERPH, MDPI, vol. 13(12), pages 1-22, December.
    7. Zhang, Junjie & Wang, Can, 2011. "Co-benefits and additionality of the clean development mechanism: An empirical analysis," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 140-154, September.
    8. Dong Guo & Satyajit Bose & Kristina Alnes, 2017. "Employment implications of stricter pollution regulation in China: theories and lessons from the USA," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(2), pages 549-569, April.

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