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GTAP Resource #4873

"An effective response to China’s emission policy for ASEAN"
by Siritorn, Komwit

China as a main trading partner of ASEAN has been facing a critical air pollution situation for many years. It may impose a stronger emission policy in order to slow down the growth of the problem. However, this may impact on not only the air pollution and economy of China but also its trading partners especially ASEAN nations. This paper aims to estimate both economic and emission long-run effects in terms of GDP and pollutant changes over 30 years based on a Dynamic CGE model and GTAP database version 8.1 constructed by GTAP team. The study found that in general, China would impose a stringent emission policy rather than a weak one as China could gain a better cost-effectiveness ratio in the long-term. Therefore, ASEAN could see a significant increase in non-GHGs pollutants (SO2, NO2, PM10) followed by GHGs pollutants (CO2, N2O, CH4). These could be reduced if ASEAN imposes an emission policy as well. Moreover, the cost effectiveness analysis also reveals that a stringent emission policy could lead ASEAN to a better rate of emission reduction per US dollar loss than a lax policy. That is why ASEAN should respond to the China’s emission policy by imposing a stringent emission policy in the region.

Resource Details (Export Citation) GTAP Keywords
Category: 2016 Conference Paper
Status: Published
By/In: Presented at the 19th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2016
Created: Siritorn, K. (3/3/2016)
Updated: Siritorn, K. (3/3/2016)
Visits: 1,902
- Dynamic modeling
- Trade and the environment
- Asia (East)
- Asia (Southeast)

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