Improving air pollution control policy in China--A perspective based on cost-benefit analysis

Area of Science:

• Environmental Policy
• Environmental Economics
• Public Health

Background:

• China's State Council enacted the Air Pollution Prevention and Control Action Plan in 2013 to address severe air pollution.
• Industrial energy-saving and emission-reduction policies are key components of this plan.

Purpose of the Study:

• To conduct a cost-benefit analysis of industrial energy-saving and emission-reduction policies implemented between 2013 and 2017.
• To assess the cost-effectiveness of different policy measures through scenario analysis.
• To identify factors influencing the benefit-cost ratio and policy sensitivity.

Main Methods:

• Cost-benefit analysis across 31 Chinese provinces (2013-2017).
• Scenario analysis for energy-saving and emission-reduction policies.
• Regression and sensitivity analyses to identify influencing factors and parameter sensitivity.

Main Results:

• The overall benefit-cost ratio was estimated at 6.32 (S3 scenario), indicating cost-effectiveness.
• Policies demonstrated higher satisfactory values in eastern China.
• End-of-pipe control measures showed greater emission reduction potential than energy-saving measures.
• Gross Domestic Product (GDP) and population were significantly correlated with the benefit-cost ratio.
• Benefit-cost ratios were most sensitive to unit emission-reduction cost, unit subsidy, GDP growth rate, and discount rate.

Conclusions:

• The implemented air pollution prevention policies are cost-effective.
• Policy effectiveness is influenced by economic factors like GDP and population.
• Sensitivity analysis highlights key parameters for policy optimization, particularly in regions like Beijing and Tianjin.