Co-control of Air Pollution and GHGs in China's Iron and Steel Sector: an Integrated Modeling Assessment of Policy and Technology Options

China is currently facing a major air pollution challenge and must make significant reductions in its emissions of conventional air pollutants (AP) and greenhouse gases (GHGs). This is especially the case for the iron and steel sector, which is one of country's biggest polluters. To help find the best way to address this problem, this study has looked at policies that will help reduce both GHGs and APs at the same time - so called, co-control policies. The study finds that a carbon tax regime can reduce both carbon and local pollutants from the iron and steel sector (and so deliver maximum benefits). However, it finds that Command and Control and End of Pipe policies produce conflicting effects in the reduction of local pollutants and CO2. It recommends that a high-rate carbon tax should be brought in. This should be done within the framework of environmental tax reform and alongside other policy measures to reduce any negative impacts the move might have on businesses and society.