Synergy between pollution and carbon emissions control: Comparing China and the United States

Abstract

We estimate the potential synergy between pollution and climate control in the U.S. and China, summarizing the results as emissions cross-elasticities of control. In both countries, ancillary carbon reductions resulting from SO2and NOxcontrol tend to rise with the increased stringency of control targets, reflecting the eventual need for wholesale change toward non-fossil technologies when large reductions are required. Under stringent pollution targets, the non-target effects tend to be higher in China than in the U.S., due to China's heavy reliance on coal. This result suggests that China may have greater incentives to reduce SO2and NOxwith locally apparent pollution benefits, but related efforts would at the same time reduce CO2emissions significantly. We also find strong non-target effects of CO2abatement in both countries, but the cross effects in this direction depend less on the stringency of control and are stronger in the U.S. than in China. Keywords: Air pollution; Carbon mitigation; Cobenefit; Emissions cross-elasticity; Computable general equilibrium