APPLYING ECONOMIC INSTRUMENTS TO AIR POLLUTION ABATEMENT IN BEIJING

Abstract

Economic instruments, as an important environmental policy tool, has drawn more and more attention of decision-makers in China, who have initially adopted command-and-control tools as the primary approaches to treat environmental problems. The same change has happened in Beijing, especially in the field of air pollution treatment, since air pollution has been developing to be one of the most serious and distinct environmental problems in 1990s. This study report reviews the development of economic instruments employed for pollution control and/or resources management both in China and in OECD countries. The main discussion is focused on the implementation and effectiveness of economic instruments for air pollution abatement in Beijing. The problems of the existing economic instruments are identified. At the end of the study, the need to reform and revise the existing economic instruments and the establishment and implementation issues are explored. Some recommendations are provided for future action.