AI Article Synopsis
- Research highlights the importance of using macroeconomic policy and cost-benefit analysis to control volatile organic compounds (VOCs) for a better air environment.
- A dynamic CGE model was used to predict VOCs emissions until 2020 based on 2007 reference data, and imposing an environmental tax on high-emission industries was analyzed.
- The results indicated that while the environmental tax could reduce VOCs emissions, it also caused high costs and affected interconnected sectors like transportation, suggesting the need for targeted subsidies alongside the tax.
Article Abstract
Researches on controlling volatile organic compounds (VOCs) through macroeconomic policy from the view of cost-benefit analysis are very important for our country to improve the air environment. Based on our previous study, this paper predicted future VOCs emissions until 2020 under current policies with 2007 as reference year by using dynamic CGE model. Meanwhile, environmental tax was imposed in ten industries with high emission and the impacts of emissions and economic system were discussed. Finally, policy implementations for VOCs emission control were suggested for policy-makers. The results showed that environment tax could mitigate VOCs emission, but it also resulted in high cost. Owing to the highly related relationship between different sectors, although transport sector was not taxed, it also suffered a great economic influence. Thus, when using the tax policy for reducing VOCs, subsidy for special sector is necessary.
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