A Study on Inter-Provincial Environmental Pollution Movement in China Based on the Input–Output Method

Abstract

In China, environmental pollution responsibilities are divided according to administrative regions. However, because of the strong externality of environmental pollution, the movement of environmental pollution undoubtedly increases the complexity of pollution governance. To divide the responsibility of environmental pollution governance in each province, we effectively quantify the unequal relationship between environmental pollution costs and economic benefits in each province to understand the mechanism and characteristics of inter-provincial environmental pollution movement. Based on the regional input–output model and an inventory we compiled of sulfur dioxide(SO2) emissions of air pollutants in 2012, we calculate the implied inter-provincial environmental pollution emissions and economic benefits from trade, based on production and consumption (supply-side and demand-side). In addition, the movement relationship is explored, and the cost and economic value-added indexes of air pollution control are further constructed to provide effective evidence for a reasonable division of responsibility for environmental pollution control. The results show that there are obvious environmental inequities in the regional trade process in each province, indicating that environmental pollution has been moved. Developed provinces have more economic benefits but pay less in the process of trading goods with less-developed provinces due to the advantages of their industrial structure, while the opposite is true for less-developed provinces. Finally, we propose corresponding policy recommendations to change this condition.