Co-benefits of climate policy--lessons learned from a study in Shanxi, China

Abstract We analyse health benefits and socio-economic costs of CO 2 -abating options related to coal consumption in Shanxi, China. Emission reductions are estimated for SO 2 and particles in addition to CO 2 . Co-benefits of each option are estimated in terms of how effectively it improves local air quality and thereby reduces health damage from pollution. The population-weighted exposure level for particles and SO 2 is estimated using air quality monitoring data, and a simplified methodology is applied to estimate the reduced exposure to the population that may result from implementing the abatement measures. Exposure–response functions from Chinese and international epidemiological studies are used to estimate the ensuing health effects. A method for estimating the impact of chronic PM 10 exposure on life expectancy in the affected population is developed and applied. An economic evaluation of the reduced health effect is made by determining unit prices of health impacts based partly on damage costs and partly on the willingness-to-pay approach. Our assessment of CO 2 -reducing abatement options in Shanxi demonstrates that these measures entail large co-benefits and are highly profitable in a socio-economic sense.