Assessing economic impacts of China’s water pollution mitigation measures through a dynamic computable general equilibrium analysis.

Changbo Qin, Johannes T.A. Bressers, Zhongbo Su, Yangwen Jia, Hao wang

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Abstract

In this letter, we apply an extended environmental dynamic computable general equilibrium model to assess the economic consequences of implementing a total emission control policy. On the basis of emission levels in 2007, we simulate different emission reduction scenarios, ranging from 20 to 50% emission reduction, up to the year 2020. The results indicate that a modest total emission reduction target in 2020 can be achieved at low macroeconomic cost. As the stringency of policy targets increases, the macroeconomic cost will increase at a rate faster than linear. Implementation of a tradable emission permit system can counterbalance the economic costs affecting the gross domestic product and welfare. We also find that a stringent environmental policy can lead to an important shift in production, consumption and trade patterns from dirty sectors to relatively clean sectors
Original languageEnglish
Article number044026
Number of pages15
JournalEnvironmental research letters
Volume6
Issue number4
DOIs
Publication statusPublished - 2011

Keywords

  • METIS-287212
  • IR-82583

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