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GTAP Resource #4193

"Economic and Environmental Effects of Water Pollution Abatement Policy in China: A Dynamic Computable General Equilibrium Analysis"
by Chen, Wen, Mai Yinhua, Lai Mingyong and Peng Xiujian

The rapid economic growth in China over two decades has unfortunately been accompanied by severe pollution problems. The environment pollution has increased dramatically and environmental cost wherefrom is enormous. In particular, water pollution situation remains a challenge in China despite substantial pollution control investments in recent years.

Chinese government has been seeking effective policy instruments to curb the increase of pollution while seeking high economic growth. Implementation of environmental pollution control policies such as command-and-control measures, pollution charge levy system and voluntarily measures play a big part in leveling off or even reducing pollution loads, particularly in certain targeted industrial sectors. However, to date, very little quantitative evidence is provided for which policy is actually effective and suitable in China. Therefore, exploring the pollution situation and control practice in the past years and evaluating effect of a series of abatement policy is a big concern and what are sustainable mechanisms for financing water pollution control is an imperative question for policy makers.

The paper & pulp industry is such a typical example that it serves as the pillar of local economy while it is a big source of major industrial pollution as well. It produces ten percent of China’s industrial wastewater emissions and one-fourth of its COD (chemical oxygen demand). In 2008, the total industrial output value of 5759 paper mills is 416.43 billion (current value), only 1% of the total output value of all the industries while the industrial waste water discharge is 4.077 billion tons, 18.76% of all industrial waste water discharge, and the emissions of COD are 1.28 million tons, 31.8% of all industrial COD emissions. The contribution rate of COD is thirty times more than its output. Chinese government began to implement a number of environmental policies to reduce water pollution from late 1970s and the numb...

Resource Details (Export Citation) GTAP Keywords
Category: 2013 Conference Paper
Status: Published
By/In: Presented at the 16th Annual Conference on Global Economic Analysis, Shanghai, China
Date: 2013
Created: Chen, W. (4/15/2013)
Updated: Batta, G. (4/25/2013)
Visits: 2,142
- Dynamic modeling
- Water availability
- Asia (East)

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