Understanding China's Urban Pollution Dynamics

China's ongoing urban economic growth has sharply increased the population's per capita income, lowered the count of people living below the poverty line, and caused major environmental problems. We survey the growing literature investigating the causes and consequences of China's urb...

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Bibliographic Details
Published in:Journal of economic literature 2013-09, Vol.51 (3), p.731-772
Main Authors: Zheng, Siqi, Kahn, Matthew E.
Format: Article
Language:English
Subjects:
Air pollution
China
Cities
Economic growth
Economic models
Economic statistics
Economic theory
Economics
Electricity
Environmental economics
Environmental impact
Environmental monitoring
Environmental pollution
Environmental quality
Externality
Green economics
Greenhouse effect
Greenhouse gases
Local government
Municipal governments
Outdoor air quality
Per capita
Per capita income
Political economy
Pollutant emissions
Pollution control
Population
Power
Quality of life
Real estate financing
Renewable energy
Studies
Sustainable cities
Urban areas
Urban population
Water pollution
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Summary:China's ongoing urban economic growth has sharply increased the population's per capita income, lowered the count of people living below the poverty line, and caused major environmental problems. We survey the growing literature investigating the causes and consequences of China's urban pollution challenges. We begin by studying how urban population and industrial growth impacts local pollution levels and greenhouse gas production. As the urban population grows richer, its demand for private transportation and electricity sharply increases. Such privately beneficial activity exacerbates urban pollution externalities. Facing these severe environmental challenges, China's urbanites increasingly demand quality of life progress. We survey the emerging literature investigating the demand for environmental progress in China. Progress in mitigating externalities hinges on whether the powerful central and local governments choose to address these issues. We analyze the political economy of whether government officials have strong incentives to tackle lingering urban externalities. We conclude by discussing future research opportunities at the intersection of environmental and urban economics.
ISSN:0022-0515
2328-8175
DOI:10.1257/jel.51.3.731