Cost accounting and sharing of air pollution collaborative emission reduction: A case study of Beijing-Tianjin-Hebei region in China

Abstract

Regional air pollution collaborative governance is an effective way to solve the increasingly serious air pollution problem in China. Based on the game model of coordinated air pollution governance established in Beijing-Tianjin-Hebei (BTH) region, the emission reduction cost of regional cooperative governance is calculated in this paper. Specifically, using several classic cost sharing methods, this study conducts the empirical test on the cost sharing emission reduction of the coordinated governance of Particulate Matter (PM) to allocate cooperative governance costs by the three governments of BTH region in 2019. The research results are shown as follows: (1) The emission reduction cost of three local governments for collaborative governance of PM has more advantages than that of a province, that is, the cost of PM cooperative governance in BTH region is about 6.5% less than that of the three governments governed separately. (2) The benefits of coordinated PM governance in BTH region calculated on the basis of the Shapley value method has shown that all provinces in this region can obtain relevant benefits from this cooperation, and the cooperative alliance is stable. (3) Regional air pollution collaborative governance game model can minimize the costs of all parties in the cooperative air pollution control of the three provinces in BTH region. This paper can provide references for the emission reduction policy formulated among regions or countries.