[Comparison Analysis of Economic and Engineering Control of Industrial VOCs]

Volatile organic compounds (VOCs) pollutant has become China's major air pollutant in key urban areas like sulfur dioxide, nitrogen oxides and particulate matter. It is mainly produced from industry sectors, and engineering control is one of the most important reduction measures. During the 12th Five-Year Plan, China decides to invest 40 billion RMB to build pollution control projects in key industry sectors with annual emission reduction of 605 000 t x a(-1). It shows that China attaches a great importance to emission reduction by engineering projects and highlights the awareness of engineering reduction technologies. In this paper, a macroeconomic model, namely computable general equilibrium model, (CGE model) was employed to simulate engineering control and economic control (imposing environmental tax). We aim to compare the pros and cons of the two reduction policies. Considering the economic loss of the whole country, the environmental tax has more impacts on the economy system than engineering reduction measures. We suggest that the central government provides 7 500 RMB x t(-1) as subsidy for enterprises in industry sectors to encourage engineering reduction.