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GTAP Resource #4247

"An Integrated Assessment of the Economic Costs and Environmental Benefits of Carbon Taxes in China"
by Ho, Mun

An Integrated Assessment of the Economic Costs and Environmental Benefits of Pollution and Carbon Control

Jing Cao
Tsinghua University, China
Mun S. Ho
Dale Jorgenson
Harvard University, USA


The rapid economic growth in China has brought a parallel degradation of the environment that is of great concern to policy makers. China has adopted stringent environmental targets under the 11th Five-Year Plan (FYP) covering 2006-2010. A more recent policy concern is the international pressure for controlling carbon emissions. We analyze the costs and benefits of these policies.The complex links between economic activity, energy use, emissions, air quality and human health requires an integrated approach. In collaboration with researchers in several fields of environmental sciences, we tie together a multi-sector economic model, a detailed emissions inventory, an advanced atmospheric model (GEOS-CHEM), and health assessment tools (BenMAP model). We find thatthe 11th FYP SO2 and energy conservation policies achieved its primary objective of reducing SO2 emissions,thus avoidingvery large damages to public health, and doing so at a sizable net benefit to GDP. We also find that a modest carbon tax would not only reduce CO2 emissions substantially, but also reduce local air pollution by an amount greater than that estimated for the 11thFYP policies. The cost to GDP from a carbon tax policy is quite small. We also compared various carbon tax proposals to shed some light on future carbon tax reform in China....

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: Ho, M. (4/16/2013)
Updated: Ho, M. (4/16/2013)
Visits: 2,082
- Dynamic modeling
- Climate change policy
- Asia (East)

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