1. A Spatial Equilibrium Analysis of Air Pollution in China
- Author
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Yamada, Eiji
- Subjects
China ,Spatialequilibriummodel ,Domesticmigration ,AirPollution ,Environmental - Abstract
Weconstructaspatialequilibriummodelwithendogenousairpollutionasaby-productof production andconsumption,wherespatiallymobileskilledandunskilledworkersareaffected negativelybutheterogeneouslybyairpollution.Usingacalibratedversionofthemodelbased on dataforChinain2010,weshowthatstrictregulationcanbea centripetal forcethatattracts workersandproductiontowardtheregulatedplace,whilereducingthelocalandoverallemission of pollutants.Thisresultisincontrasttotheinsightsoftraditionaltheoriesthatseeenviron- mental regulationasa centrifugal forceforthelocaleconomy.Themigrationofworkerswho care environmentalquality,input-outputlinkagesindomestictradenetworks,andopennessto internationaltrade,workinthemechanismdeliveringthisresult.Wethenconsiderahypothetical policy toreducenationalindustrialemissionby10percentandcomparestrategiesonhowto allocate reductionresponsibilitiesacrosscities.Wefindthatconcentratingresponsibilityina limited numberofrichcitiesmayoutperformamoreequalallocationintermsofwelfareand economic output.
- Published
- 2020