Socioeconomic burden of air pollution in China: Province-level analysis based on energy economic model

Xu Zhang, Xunmin Ou, Xi Yang, Tianyu Qi, Kyung-Min Nam, Da Zhang and Xiliang Zhang

Energy Economics, 2017, vol. 68, issue C, 478-489

Abstract: In this study, we apply to China the China Regional Energy Model, developed as part of the Regional Emissions Air-Quality Climate Health (REACH) assessment framework, and estimate PM2.5-associated health costs. We estimate that, in 2015, exposure to PM2.5 caused a nationwide welfare loss of US$248 billion (3.6% of the baseline welfare level). Over half the cost is from mortalities associated with chronic exposure, followed by broader economic loss (38%) and direct loss from short-term exposure (9%). The cost varies among provinces (0.5%–5.8% of the baseline welfare level), due to subnational heterogeneity in air quality, population density, and income levels. The cost in absolute terms is large in populous, coastal provinces, such as Shandong, Jiangsu, Zhejiang, and Guangdong, but when the local economy size is controlled for, the Greater Beijing area and central inland provinces also suffer large welfare losses in relative terms.

Keywords: Air pollution; Socioeconomic burden; China; Computable general equilibrium (search for similar items in EconPapers)
JEL-codes: C68 D58 I15 I31 J17 O13 O53 Q43 Q51 Q53 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:68:y:2017:i:c:p:478-489

DOI: 10.1016/j.eneco.2017.10.013

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