No open-access location is known for this record yet.
No open-access location is known for this record yet.
No AccessPolicy Research Working Papers21 Jun 2013Pricing Industrial Pollution in China: An Economic Analysis of the Levy SystemAuthors/Editors: Hua Wang, David Wheeler, Hua WangHua Wang, David Wheeler, Hua Wanghttps://doi.org/10.1596/1813-9450-1644SectionsAboutPDF (1.7 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:An analysis of provincial water pollution control shows that China's pollution levy system has been working much better than is commonly believed. Wang and Wheeler analyze China's experience with the water pollution levy, an emissions charge system that covers hundreds of thousands of factories. The levy experience has not been studied systematically, but anecdotal critiques have suggested that the system is arbitrarily administered and ineffective in controlling pollution. Critics view the levy as a local financing mechanism, but ineffective as a regulatory instrument. Enforcement is thought to vary widely, so that factories in different regions face different penalties for polluting. And it is widely believed that the levy provides little incentive to control pollution because official rates are below marginal abatement costs. Wang and Wheeler test the conventional critique of the levy system using solid new province level data for 1987-93. Their results suggest that the water pollution levy system is neither arbitrary nor ineffective. Across provinces and over time, variations in the effective levy rate are well explained by proxies for local valuation of environmental damage and community capacity to enforce local norms. During 1987-93, rapid development in many provinces led to sharp increases in the effective rate. Their results also suggest that the emissions intensity of Chinese industy was highly responsive to those increases, because marginal abatement costs were often lower than levy rates. And from 1987 to 1993, provincial pollution intensities fell at a median rate of 50 percent, and total discharges at a median rate of 22 percent. The results suggest several lessons for regulators in developing countries: ° Local enforcement of national standards will determine the effective price of pollution in each area. Such regional heterogeneity is natural and legitimate. ° The locally enforced price of pollution rises with industrial development. ° Early in the regulatory process, industrial emissions intensity is highly responsive to changes in the price of pollution, mainly because marginal costs are often quite low in low to medium abatement ranges. In China, provincial adjustments of effective levy rates and other regulatory instruments have been sufficient to induce sharp declines in emissions intensity and reductions in total emissions from registered factories during a period of rapid industrial growth. This paper -- a product of the Environment, Infrastructure, and Agriculture Division, Policy Research Department -- is part of a larger effort in the department to identify appropriate policies for environmental regulation in developing countries. The study was funded by the Bank's Research Support Budget under research project The Economics of Industrial Pollution Control in Developing Countries (RPO 680-20). Previous bookNext book FiguresReferencesRecommendedDetailsCited ByWhat drives ports around the world to adopt air emissions abatement measures?Transportation Research Part D: Transport and Environment, Vol.90Supervision of environmental enforcement and corporate environmental performanceNankai Business Review International, Vol.10, No.1Does the establishment of the Ministry of Environmental Protection matter for addressing China's pollution problems? Empirical evidence from listed companiesEconomics of Governance, Vol.19, No.323 June 2018The effects of urban agglomeration economies on carbon emissions: Evidence from Chinese citiesJournal of Cleaner ProductionGoing Green or Going Away: Environmental Regulation, Economic Geography and Firms' Strategies in China's Pollution-Intensive Industries8 January 2017Political Connections and Industrial Pollution: Evidence Based on State Ownership and Environmental Levies in ChinaJournal of Business Ethics, Vol.138, No.41 August 2015Environmental Management Under Subnational Institutional ConstraintsJournal of Business Ethics, Vol.134, No.419 September 2014Does the Establishment of the Ministry of Environmental Protection Matter for Addressing China's Pollution Problems? Empirical Evidence from Listed CompaniesSSRN Electronic JournalA Method for Analyzing Pollution Control Policies: Application To SO2 Emissions in ChinaSSRN Electronic JournalGoing green or going away: Environmental regulation, economic geography and firms' strategies in China's pollution-intensive industriesGeoforum, Vol.55Regional Air Quality Management in China: A Case Study in the Pearl River DeltaEnergy & Environment, Vol.24, No.7-81 December 2013Air Quality in Urban ChinaEurasian Geography and Economics, Vol.53, No.615 May 2013Evidence on the interjurisdictional competition for polluted industries within ChinaEnvironment and Development Economics, Vol.15, No.326 February 2010Effective pollution control policy for ChinaJournal of Productivity Analysis, Vol.33, No.122 September 2009Greening Industry Without Enforcement? An Assessment of the World Bank's Pollution Regulation Model for Developing CountriesLaw & Policy, Vol.21Pollution abatement cost savings and FDI inflows to polluting sectors in ChinaEnvironment and Development Economics, Vol.12, No.61 December 2007Productivity of market and environmental abatement in ChinaEnvironmental Economics and Policy Studies, Vol.7, No.418 September 2014Integration of Macroeconomic Behavioural Relationships and the Input-Output Block (Romanian Modelling Experience)SSRN Electronic JournalIntegrating Environmental and Economic Policy Making in China and TaiwanAmerican Behavioral Scientist, Vol.45, No.927 July 2016Pollution regulation and abatement efforts: evidence from ChinaEcological Economics, Vol.41, No.1Pathways to industrial environmental improvement in the East Asian newly industrializing economiesBusiness Strategy and the Environment, Vol.11, No.21 January 2002Références bibliographiquesThe nexus between industrialization and environmentEnvironmental Management and Health, Vol.13, No.1Inspections, pollution prices, and environmental performance: evidence from ChinaEcological Economics, Vol.36, No.3Water pollution abatement by Chinese industry: cost estimates and policy implicationsApplied Economics, Vol.33, No.4Globalization and the Environment: Determinants of Firm Self-Regulation in ChinaSSRN Electronic JournalIndustrial pollution in economic development: the environmental Kuznets curve revisitedJournal of Development Economics, Vol.62, No.2Experience with Market-Based Environmental Policy InstrumentsSSRN Electronic Journal View Published: September 1996 Copyright & Permissions Related RegionsEast Asia & PacificRelated CountriesChinaRelated TopicsEnvironmentIndustryWater Resources KeywordsAIR POLLUTIONDEMANDECONOMICSEMISSIONSENVIRONMENTENVIRONMENTALENVIRONMENTAL ECONOMICSEQUILIBRIUMMARGINAL ABATEMENTMARGINAL ABATEMENT COSTSMARGINAL COSTSPOLICIESPOLLUTIONPOLLUTION CONTROLPRICE OF POLLUTIONREGULATIONSTANDARDSSUPPLYWATERWATER POLLUTION PDF DownloadLoading ...
Loading…
Stored only when both papers are in the corpus — 76 citations exist upstream.
Papers that cite the same references — the relational fallback while embeddings are still backfilling.
Imported from OpenAlex (CC0) — nothing here is generated.