Sulphur Emission Control in China: Domestic Policy and Regional Cooperative Strategy

This paper investigates the economic costs of pollution due to sulphur dioxide emissions in China and their impacts on human health and ecosystems in Northeast Asia, specifically China and Japan. We compare actual emission charging as practiced in China with the estimated domestic and regional “optimal” charges. The analysis demonstrates that, while the actual SO2 emission charge in China has been increased, it may be still less than the estimated domestic “optimal” charge incorporating damage costs only on human health by dry deposition in a gaseous form, excluding damage costs caused by acid rain in China. Nevertheless, it would be still beneficial for Japan to financially assist China with its SO2 reduction because the percent contribution by northeast China to deposition in Japan is increasing.