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Assessing economic impacts of China’s water pollution mitigation measures through a dynamic computable general equilibrium analysis
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.
Assessing economic impacts of China’s water pollution mitigation measures through a dynamic computable general equilibrium analysis
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.
Assessing economic impacts of China’s water pollution mitigation measures through a dynamic computable general equilibrium analysis
Assessing economic impacts of China’s water pollution mitigation measures through a dynamic computable general equilibrium analysis
Changbo Qin (author) / Hans T A Bressers (author) / Z (Bob) Su (author) / Yangwen Jia (author) / Hao Wang (author)
Environmental Research Letters ; 6 ; 044026
2011-10-01
15 pages
Article (Journal)
Electronic Resource
English
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