As we all know, air is a non-excludable and non-rival public resource. As a result, a tremendous amount of vehicle waste is emitted into atmosphere. The air quality in China continues to rapidly deteriorate. According to a study by the World Bank, “air pollution kills more than 750,000 people each year in China”. As a result, it is pertinent that government has to put some new regulations into place to reduce the emissions.
As David mentioned in class, 30% of the air pollution in China is due to transportation. In terms of reducing transportation emission, firstly, I think the Chinese government should develop the public transportation system by constructing more subways to cover urban areas and designing more convenient bus routes. Improving public transport would help people to reduce their time cost, so they would like to take public transport instead of driving. Secondly, if the government tax resources, like gasoline, more drivers would likely choose to use public transport instead because it would be less expensive for them to do so. The Chinese government could spend the gasoline tax revenue to devote to the construction of public transportation. Third, the Chinese government could subsidize the consumption of the hybrid cars. This help to reduce the gas emissions and stimulate the economy since more people would purchase the hybrid car instead. The government spending is from the tax revenue, all people need to pay in order to implement these policies, and meanwhile, all people will be benefit from the air quality improvement. In general, the government must be able to use the taxes on the people.
Bottom line: In my opinion, there is no single perfect policy that could solve the environmental problem. However, the Chinese government needs to do something to stop the environment from deteriorating.
* These guest posts are from students in my resource economics class at Simon Fraser University. Please leave feedback on their logic, ideas and style and suggestions of how to improve.