The health benefits and economic effects of cooperative PM2.5 control: A cost-effectiveness game model

Abstract

In the PM2.5 control of Jing-jin-ji region, the emission reduction target is the decrease of concentration which is different from greenhouse gases control. We constructed a game model of PM2.5 (all particulate matter that has an aerodynamic diameter of 2.5 μm) that is based on the transmission and retention of PM2.5 and that accounts for the direct costs, economic development effects and health benefits of the control of PM2.5. In addition, we conceived a new method to allocate the benefits of cooperative efforts based on changes in welfare. The Beijing-Tianjin-Hebei region of China was studied as an example for this model. The results show that cooperation is an effective strategy for PM2.5 control in this region in 2015. The aggregate indirect cost was 30.87% lower in the cooperative case than the non-cooperative case. Cooperation increases the health benefits and economic effects by 2.3 billion Yuan. The most negative effects of economic development come from manufacturing and industry, and the health benefits of free rider are small based on transmission matrix. Compared with Hebei which owes the lowest cost, Beijing and Tianjin are more suitable to undertake more PM2.5 control tasks in the cooperation because of their special transmission matrix and regional center location. Our research reveals the importance of transmission matrix in the control of air pollutants, the characteristics of PM2.5 control and give policy implications based on our empirical study and game model.