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The Ancillary Carbon Benefits of SO2 Reductions from a Small-Boiler Policy in Taiyuan, PRC

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  • Krupnick, Alan

    (Resources for the Future)

  • Morgenstern, Richard

    (Resources for the Future)

  • Zhang, Xuehua

Abstract

To reduce carbon emissions worldwide, it makes sense to consider the possibility of developed countries paying for carbon reductions in developing countries. Developing countries may be interested in such activities if the ancillary air pollution benefits are large. This paper reports on an RFF survey of the emissions benefits (and costs) of reducing sulfur dioxide (SO2) emissions from small, coal-burning boilers in Taiyuan, an industrial, northern Chinese city that recently banned uncontrolled coal combustion in certain small boilers in the downtown area. We find significant carbon benefits in percentage terms - on the order of 50% to 95% reduction - associated with this SO2 control policy, with large reduction potential elsewhere in Taiyuan and China. While the cost for boilers that switched out of coal was almost $3,600 per ton of SO2 reduced, these ancillary carbon reductions are truly "free" from a social cost perspective.

Suggested Citation

  • Krupnick, Alan & Morgenstern, Richard & Zhang, Xuehua, 2002. "The Ancillary Carbon Benefits of SO2 Reductions from a Small-Boiler Policy in Taiyuan, PRC," RFF Working Paper Series dp-02-54, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-02-54
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    References listed on IDEAS

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    1. Blackman, Allen, 2000. "Informal Sector Pollution Control: What Policy Options Do We Have?," World Development, Elsevier, vol. 28(12), pages 2067-2082, December.
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    1. Boucekkine, Raouf & Fabbri, Giorgio & Federico, Salvatore & Gozzi, Fausto, 2021. "From firm to global-level pollution control: The case of transboundary pollution," European Journal of Operational Research, Elsevier, vol. 290(1), pages 331-345.
    2. Rive, Nathan, 2010. "Climate policy in Western Europe and avoided costs of air pollution control," Economic Modelling, Elsevier, vol. 27(1), pages 103-115, January.
    3. Rubbelke, Dirk T.G. & Rive, Nathan, 2008. "Effects of the CDM on Poverty Eradication and Global Climate Protection," Climate Change Modelling and Policy Working Papers 46650, Fondazione Eni Enrico Mattei (FEEM).
    4. Brajer, Victor & Mead, Robert W. & Xiao, Feng, 2008. "Health benefits of tunneling through the Chinese environmental Kuznets curve (EKC)," Ecological Economics, Elsevier, vol. 66(4), pages 674-686, July.
    5. Bing Wang & Yifan Wang & Yuqing Zhao, 2021. "Collaborative Governance Mechanism of Climate Change and Air Pollution: Evidence from China," Sustainability, MDPI, vol. 13(12), pages 1-16, June.

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    More about this item

    Keywords

    Carbon; air pollution; informal sector; ancillary benefits; abatement costs; survey;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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