Local Area Quotas for Industrial Emissions along Reaches of the Pearl River in Guangdong

Abstract

There is an obvious departure from the regional equilibrium of developments between the upper and lower reaches of the Pearl River in Guangdong, which resulted in “the effects of contra-geography-grads development”. It is mainly because the upriver mountainous areas have been deeply stuck in industrialization delay and marginalization plights, so that nearly 40 million local people have conceived a dream to get rid of “the vicious circle of poverty” by speeding up industrial development. But the problem is that such industrialization efforts on a large scale in mountainous areas are encountering the bottleneck of environmental capacity that strictly limits industrial emissions along the upper reaches of any water system. As a solution, an institutional arrangement called “the Local Area Quotas for Industrial Emis-sions along the Pearl River” is put forward supposed to give corresponding compensation to the rights of industrial development yielded by some areas with lower environmental capacity through the distribution and trading of IDQs.