Efficient air pollution abatement for regions in China

Abstract

This paper computes the efficient air pollution abatement ratios of 30 regions in China during the period 1996–2002. Three air emissions (SO2, soot and dust) are considered. Data envelopment analysis (DEA) with a single output (real GDP) and five inputs (labour, real capital stock, SO2, dust and soot emissions) is used to compute the target emissions of each region for each year. The efficient abatement ratios of each region in each year are then obtained by dividing the target emission by the actual emission of an air pollutant. Our major findings are: 1. The eastern area is the most efficient region with respect to SO2, soot and dust emissions in every year during the research period. 2. The eastern, central and western areas have the lowest, medium and highest 1996–2002 average target abatement ratios of SO2 (22.09%, 42.23% and 57.58%), soot (26.19%, 56.34% and 66.37%) and dust (15.20%, 29.09% and 40.59%), respectively. 3. These results are consistent with the Environmental Kuznets Curve (EKC) theory, whereby a more developed area will use environmental goods more efficiently than a less developed area. 4. Compared to dust emission, the average target abatement ratios for SO2 and soot emissions (as direct outcomes of burning coal) are relatively much higher for all three areas.