This book is an impressive collection of data about the economic dimension of environmental pollution in the People's Republic of China. It establishes, in an unprecedented way, links between activities in the energy, industry and transportation sectors and the extent of particulate air pollution (measured as PM2.5) in China, while offering recommendations on how to drastically reduce it. The main author, Ma Jun (chief strategist at the research bureau of the People's Bank of China) and a handful of colleagues, who contributed data and analyses for individual chapters, develop multi-faceted models that illustrate possible pathways toward the country's greener and cleaner future. The book was produced with support from the Paulson Institute (Chicago) and is a translation and selection of chapters from a book originally published in Chinese in 2014.
The book is divided into two larger parts. The first contains five chapters, starting with an analysis of the main sources of air pollution in China. The authors then describe the measures, mainly in the form of policies enacted by the central government, that have already been taken to reduce PM2.5 levels, such as pollution monitoring, industrial upgrading, traffic regulation and the expansion of public transport, etc. Since, according to the authors’ calculations, the chosen instruments will not suffice to achieve the formulated goal of reducing average annual PM2.5 levels by almost half (namely, from 65 µg/m3 to 35 µg/m3) by 2030, the authors come to suggest further actions aiming at structural adjustments in different economic sectors in order to tackle air pollution. In addition, they present possible economic incentives for these structural adjustments and conclude that complying with these measures which aim at pollution reduction does not necessarily need to hamper economic growth. The second part of the book continues to model pollution reduction strategies in four chapters, but now for specific localities (Shanghai, Beijing), in specific fields (coal use) and by certain means (green finance).
Ma Jun's analyses are unique and valuable since they represent an incredibly comprehensive and systematic econometric approach to the problem of air pollution in China. The book contains an enormous amount of data, mostly stemming from official sources in China, as well as systematic references to the experiences and developmental paths of other countries which faced similar challenges during industrialization. Not least, the authors deserve credit for venturing to present bold evaluations and ambitious expectations regarding China's future greener development. Taken together, this book is a treasure trove for policy makers (for whom these analyses have assumedly been compiled in the first place), for readers interested in China's economic structures and related pollution output, and for anyone fascinated by econometric modelling. However, everybody else might find this book less appealing.
This may be due to the fact that the whole book mainly consists of models and policy advice. It does not contain much real in-depth, social science analysis. Chapters start with sentences such as “Shanghai should…” or “Beijing must…” and most often do not diverge from this advisory style of writing. Even the so-called case studies in the second part of the book are rather presentations of data and models and a collection of recommendations. Moreover, the authors here repeat many of the points already mentioned as general advice presented in the first half of the book.
Furthermore, the whole study is very much aligned with the official, government-controlled formulation of the problem. One chapter starts, for instance, by stating that “[s]ince January 2013, many Chinese cities have suffered severe PM2.5 pollution …” (p. 199). In fact, the problem – that had of course existed long before – only peaked in 2013, finally prompting massive public debate, and was then eventually put on the agenda of crucial political issues. Moreover, the authors’ suggestions do not crucially extend or challenge the central policy measures already launched or discussed in China. The actual structural problems that exist are mentioned, but they somehow drown in a continuous stream of numbers and figures. Crucial actors, including consumers, their interactions and the wider societal structures in China and beyond, on which all the suggested measures ultimately hinge, are largely left out of the picture. Thus, it becomes rather difficult for the reader to access the feasibility of the recommended steps and measures.
In summary, this book is a valuable source of data that researchers and teachers alike may find helpful in their approaches to understanding and illustrating the relationship of economic structures and air pollution in China.