Comparision of China’s volatile organic compound pollution management: a computable general equilibrium approach

The public health and ecological impacts of volatile organic compound (VOCs) pollution have become a serious problem in China, arousing increasing attention to emissions control. In this context, this paper analyses the effectiveness of VOC reduction policies, namely pollution charges and environmental taxes at the national and industrial sector levels. It uses a computable general equilibrium model, which connects macroeconomic variables with VOC emissions inventory, to simulate the effects of policy scenarios (with 2007 as the reference year). This paper shows that VOC emissions are reduced by 2.2% when a pollution charge equal to the average cost of engineering reduction methods – the traditional approach to regulation in China – is applied. In order to achieve a similar reduction, an 8.9% indirect tax would have to be imposed. It concludes that an environmental tax should be the preferred method of VOC regulation due to its smaller footprint on the macroeconomy. Other policies, such as subsidies, should be used as supplements.     

Study on the efficiency and regional disparity of green technology innovation in China’s industrial companies

This paper first constructed a system to evaluate the innovation efficiency of industrial companies within Mainland China. Then, a principal component analysis (PCA) was performed to these indicators for dimensionality reduction, so as to figure out the technology innovation efficiency in these two phases, respectively. Finally, the overall efficiency of industrial companies in different regions was estimated and factorized via data envelopment analysis (DEA). The results showed that: (1) the efficiency of green technology innovation of industrial companies in China was relatively low as a whole, which mainly resulted from pure technical efficiency (PTE). Further, this huge gap continues to expand in these regions. And both PTE and scale efficiency (SE) in central and western regions leave much to be expected. (2) In the first phase of green technology development, when environmental factors were concerned, the efficiency was much lower than that without environmental considerations. Besides, the central and western regions were facing increasingly severe environmental problems, and there was a wide disparity in technology development efficiency among eastern, central, and western regions. (3) In the second phase of green technology commercialization, there were still more rooms for improvement in raising the efficiency of green technology innovation, and the efficiency in eastern, central, and western regions was ranked from highest to lowest. (4) Liaoning, Hebei, Heilongjiang, Xinjiang, Shanxi, Inner Mongolia, Yunnan, and Qinghai should focus on improving their technology; Jilin, Jiangxi, Anhui, and Guangxi should make their efforts to reduce resource redundancy; whereas Ningxia and Gansu should try to solve the above two issues.     

Empirical analysis of carbon tariff’s effect on the export structure of China’s manufacturing industry and social welfare based on the GTAP model

In recent years, carbon emissions have gradually evolved from an environment issue into a political and economic one. Carbon tariff has brought about new trade barriers of developed countries, and in order to enhance the industrial competitiveness of developed countries, it will produce unfavorable impact on developing countries. Concentrated on the manufacturing industry, which is the most intensive high-carbon industry in China’s export structure, this article studies the relationship between carbon tariff policy and industry structure of export trade and builds up a relation between climate change and international trade. First, by means of establishing a partial equilibrium model, it applies geometric analysis and mathematical analysis to compute the impact on China’s manufacturing export trade and the consequences of the introduction of the US carbon tariff to China’s manufacturing industry that has already imposed a domestic shipping carbon tax. Furthermore, with the application of the GTAP model, it estimates the overall economic and welfare effects on China’s manufacturing industry if the US and Europe introduce carbon tariff by means of four ways, and then analyzes the influence on China’s manufacturing industry export structure and social welfare as well. The result shows that the introduction of the US carbon import tariff lowers China’s export price and export volume, and the implementation of a domestic carbon tax justifies a higher export price and a lower export volume for China. However, the degree of export reduction is smaller than that under the effect of the US carbon tariff. In the case of developed countries imposing carbon tariff on China’s energy-intensive industries, such as chemical rubber products, oil and coal-processing industry and paper industry, whose export would be reduced, the negative impact on the paper industry is the severest, which will decrease the paper industry’s export ranging from 1.79% to 6.05%, whereas the other industries’ export will increase. Anyhow, it will promote China’s manufacturing industry to adjust the export structure to a certain extent. In addition, it will lead to a decrease in China’s welfare, with a decrease between $2.134 billion and $8.347 billion. Finally, this paper provides information on international coordination, export structure adjustment and green manufacturing adjustment as a reference for the development of China’s manufacturing industry.     

Environmental efficiency and its determinants in the development of China’s western regions in 2000–2014

In this study, we measure the environmental efficiency of western China in 2000–2014 by the super-efficiency slacks-based measure model which considers the undesirable outputs. The results show that the environmental efficiency of western China is low and rank behind in the national level. The environmental efficiency is lower than the traditional efficiency which reflects that the economic growth in 2000–2014 has paid high environmental costs. The difference between the traditional efficiency and environmental efficiency experienced “inverted U”-type trend change. The environmental efficiency of the western provinces presented differentiated developing trend and the differences between the western provinces were enlarging. The environmental efficiency of the western regions was not only lower than that in the eastern regions with a big gap but also lower than that in the central regions. Through the convergence test, we found that the environmental efficiency gap between the western and the eastern regions was gradually expanding; meanwhile, the environmental efficiency gap between the central and the western regions was narrowing. This paper also analyzes the determinants of environmental efficiency by the tobit model and then addresses.     

Carbon emission reduction potential and its influencing factors in China’s coal-fired power industry: a cost optimization and decomposition analysis

Environment, Development and Sustainability - China has become the world’s most carbon-emitting country, and the coal-fired power industry (CFPI) dominates China’s carbon emissions....     

Regional differences and influencing factors in the CO<Subscript>2</Subscript> emissions of China’s power industry based on the panel data models considering power-consuming efficiency factor

With the economic development, China has become the largest CO₂ emissions country. China’s power industry CO₂ emissions accounted for about 50% of total CO₂ emissions. Therefore, exploring major drivers of CO₂ emissions is critical to mitigating its CO₂ emissions in power industry. Many studies considered the time series model to analyze the national influences factors of CO₂ emissions. But this paper focuses on regional differences in CO₂ emissions and adopts panel data models to explore the major impact factors of CO₂ emissions in the power industry at the regional and provincial perspectives. The results indicate economic growth level plays a dominant role in reducing CO₂ emissions. The power-consuming efficiency on the demand side has large potential to mitigate CO₂ emissions, but its influences are different in three regions. The impacts of the electric power structure on CO₂ emissions decline from the eastern region to the central and western regions. The influence of urbanization and industrialization also has significant regional differences. Therefore, the governments should consider the influencing factors and regional differences and formulate appropriate policies to decrease CO₂ emissions in the power industry.