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Economic Instruments of Pollution Control in an Imperfect World
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This volume discusses the wider issues of economic instruments of pollution control as well as paying specific attention to the control of carbon dioxide emissions in China. The book begins with a general analysis of economic instruments of pollution control, and is followed by the application of these in CO2 emission control. The former presents the discussion of pollution control policies in general equilibrium settings, focusing on the comparison of pollution taxes and tradeable permits in certain kind of circumstances with imperfections such as uncertainty and pre-existing distortions. An empirical evaluation of China's environmental policies is also included. The latter brings the discussion into the area of global warming policies with the focus on the implications to China. A dynamic general equilibrium model, G-Cubed-T, is developed to produce CO2 emissions projections from China, the US and the rest of the world, and to simulate various policy targets and instruments China may adopt to control its CO2 emissions.
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