The Local and Global Benefits of Green Tax Policies in China

Posted: 18 Aug 2009

See all articles by Jing Cao

Jing Cao

Southern Methodist University (SMU)

Mun S. Ho

Resources for the Future

Dale W. Jorgenson

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Date Written: Summer 2009

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.

Keywords: Q56, Q58

Suggested Citation

Cao, Jing and Ho, Mun S. and Jorgenson, Dale W., The Local and Global Benefits of Green Tax Policies in China (Summer 2009). Review of Environmental Economics and Policy, Vol. 3, Issue 2, pp. 189-208, 2009, Available at SSRN: https://ssrn.com/abstract=1456194 or http://dx.doi.org/rep005

Jing Cao (Contact Author)

Southern Methodist University (SMU) ( email )

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Mun S. Ho

Resources for the Future ( email )

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Washington, DC 20036
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Dale W. Jorgenson

Harvard University - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Harvard University - Harvard Kennedy School (HKS) ( email )

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