Valuation Study

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Value of Pollution Reduction

Attributes

Medium: Air

Country: China

Analytical Framework(s): Least Cost Concept

Study Date: 2008

Publication Date: 2009

Major Result(s)

Resource/Environmental Good CNY, million currency units
(2008)
MAC of gasoline station measure at 90% efficiency1 192.00
MAC of gasoline station measure at 60% efficiency 289.00
MAC of gasoline station measure at 30% efficiency 577.00
MAC of PP_BJ Denitration efficiency at baseline efficiency 6,746.00
MAC of PP_BJ Denitration efficiency at 20% decrease efficiency 8,433.00
MAC of PP_BJ Denitration efficiency at 50% decrease efficiency 13,492.00
MAC of PP_BD Denitration efficiency at baseline efficiency 20,463.00
MAC of PP_BD Denitration efficiency at 20% decrease efficiency 25,578.00
MAC of PP_BD Denitration efficiency at 50% decrease efficiency 40,925.00
MAC of PP_LF Denitration efficiency at baseline efficiency 23,399.00
MAC of PP_LF Denitration efficiency at 20% decrease efficiency 29,249.00
MAC of PP_LF Denitration efficiency at 50% decrease efficiency 46,798.00
MAC of PP_TJ Denitration efficiency at baseline efficiency 26,484.00
MAC of PP_TJ Denitration efficiency at 20% decrease efficiency 33,105.00
MAC of PP_TJ Denitration efficiency at 50% decrease efficiency 52,968.00

Study Note: With the rapid economic development and urbanization in Beijing, ground-level ozone pollution has become one of the most severe challenges to air quality control in the city. Although Beijing implemented its "16 stages of air quality control policies" in 1998, control strategies for secondary pollutants such as ground-level ozone and particulate matter (PM) were not given serious attention until very recent years. This study focusedon ozone control measures/policies, with their corresponding cost analysis, in order to find a cost-effective control path for certain ozone reduction targets.

Study Details

Reference: Xie Xuxuan, Wu Dan. 2009. Cost-Effectiveness Analysis of Ground-Level Ozone Control in and Around Beijing. EEPSEA Research Report, No. 2009-RR7.

Summary: Ground-level ozone pollution has become one of the most severe air pollution problems in Beijing. Because of the complex processes involved in the tranmission and chemical formation of pollutants, ozone control strategies and policies may lack the element of cost-effectiveness. Our study identified two important and controllable emission sources of ozone pollution which emit most of the nitrogen oxide (NOx) and volatile organic compounds (VOC) in and around Beijing, discussed control measures/policies for different areas and sectors/industries, and calculated the emission reduction potential and annual control costs of the said measures/policies. Taking the costeffective approach, we applied the Ambient Least Cost Model, compared the costeffectiveness of the measures/policies and finally formulated the optimal control path with the lowest total cost. The cost-effectiveness of emissions control was found to vary widely across areas and sectors, indicating that the cost-saving potential was large. By exploring different policy scenarios, we found that behaviour modification, improving implementation efficiencies and structural changes in certain sectors could play important roles in reducing ozone pollution at low costs.

Site Characteristics: From 1984-1987, data from the Beijing Environment Monitoring Center's nine ozone monitoring stations revealed that, in the summer of 1986, photochemical smog appeared in Beijing. By the 1990s, near-ground ozone levels had increased. Pollution often occurs in summer and autumn, due to higher temperatures, less wind and strong sunlight. We can see that although the exceeding days and hours went down and up, they were all at high levels, as there were around 60 days or more than 100 hours each year exceeding China's Air Quality Standards II for ground ozone pollution. Ozone pollution has become one of the most important issues in Beijing's air pollution control.

Comments: This study conducted a typical cost-effectiveness analysis using the average annual cost per unit of ozone concentration decline to represent the cost-effectiveness of different measures. The ALC model shows the relationship between local emissions and the receptor's ozone concentrations, and the optimization process, which are described in the following sections.

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