China: Combating Pollution in a Growing Economy Chris Clark and Shelby McGrain Economics 286 Spring 2000

Overview I. Pollution Data A. Sources of Pollution B. Health Effects II. China ’ s Pollution Policies A. Historical Policy B. Current Policies III. Future Implications

Pollution I. Air Pollution A. Coal B. Cars II. Water Pollution A. Industrial Waste B. Run-off

Air Pollution I. Coal a. Coal fired industrial boilers 1. 1/3 to 1/2 of all TSP and SO 2 b. Residential use of coal 2. 15% of total coal use, but causes 1/3 of TSP and SO 2 II. Cars a. Urban car usage increasing at a rate of 10% per year b. Responsible for the remaining TSP and SO2, and also lead

Energy Demand in China

Scenes of China ’ s Air Pollution:

Water Pollution I. Water Shortages a. Inefficiency b. Policy Problems II. Pollution a. Industrial Pollution b. Agricultural Pollution

Water Quality Disparities by Region

Increasing Destruction of Freshwater Resources:

Health Effects I. Air Pollution a. Respiratory Disease b. Exposure to lead II. Water Pollution a. Damage fisheries and agriculture b. Damage to human health c. High levels of acid rain

Pollution Policies I. Command-Control Policies a. Discharge Standards b. Abatement facility installment deadlines c. Discharge permits II. Market-based Polices a. Emissions charges b. Pollution abatement subsidies

China ’ s Historical Policies I Environmental Protection Law - Established levies on emissions beyond a certain standard II Air pollution license system begins - Industries were given enterprise-specific standards III High sulfur dioxide levels instigate the implementation of fees for any emissions

Policy Timeline Environmental Protection Law establishes a general legal framework for regulating environmental degradation Water Pollution Prevention and Control Law Promulgated Air Pollution Prevention and Control Law Promulgated State Council Approves “ Ninth Five-Year Plan for Environmental Protection in Government Announces that China will Phase Out Leaded Gasoline by 2000

Current Chinese Pollution Policy I. A Mix of Command and Market-based a. Weaknesses of command policy I. The charge-subsidy double incentive program a. Investment in pollution abatement facilities II. In Recent News