Abstract
ABSTRACT This paper reports an analysis using the computable general equilibrium (CGE) model to calculate the economic development and emissions under different air pollution prevention strategies, with a focus on the Beijing-Tianjin-Hebei rim surrounding the cities in the ‘Capital Economic Circle’. It appeared that raising the emission tax effectively suppressed air pollution but also suppressed economic development. Raising the emission subsidy promoted economic development, but did not suppress air pollution. A stepwise tax collection mode can be used to formulate the emission tax. When using emission subsidies to encourage manufacturers to improve their exhaust treatment technology, the policy should be tilted towards small enterprises to reduce economic pressure on them.
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