Climate Change Research ›› 2016, Vol. 12 ›› Issue (2): 154-161.doi: 10.12006/j.issn.1673-1719.2015.135

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Economic and Environmental Implications of Raising China’s Emission Standard for Thermal Power Plants: An Environmentally Extended CGE Model-Based Analysis

Liu Yu1, Hu Xiaohong2   

  1. 1 Institute of Policy and Management, Chinese Academy of Sciences, Beijing 100190, China; 
    2 School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
  • Received:2015-07-20 Revised:2015-11-23 Online:2016-03-30 Published:2016-03-31
  • Contact: Yu Liu


An environmental CGE model is developed to analyze the impacts of emission standard of air pollutants for thermal power plants GB 13223-2011 on China’s macro economy and air pollutants emission reductions. The simulation results show that the new standard has little effect on the macro economy with the GDP losing by 0.18%. From the industry output, due to the fall of factor prices, the industrial sector and the export-oriented industry’s cost reduce, which result in output expansion. In addition, the reduction effect of atmospheric pollutant emission is remarkable. Due to the increase of removal rate for exhaust gas and coal combustion emissions decrease significantly, SO2 and NOX emissions are decreased by 22.8% and 11.4%, with the absolute volume decreased by 5.60 Mt and 1.48 Mt, respectively.

Key words: thermal power plants, emission standard, economy, air pollutants emission reductions, environmental CGE model

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