The economic benefits of international co-operation to improve air quality in Northeast Asia:A focus on Japan, Korea and China

This paper aims to quantify the benefits of policy action on air pollution in Japan, Korea and China, with focus on the additional benefits from co-ordinated policy action in the three countries. The paper compares a policy scenario in which current policies continue in the coming decades with scenarios in which each of the three countries implements ambitious policy action. These single-country policy action scenarios are also compared with a co-ordinated policy action scenario in which the three countries act at the same time, and with a global policy action scenario. The analysis relies on the OECD ENV-Linkages computable general equilibrium model. For the different scenarios, projections of economic activities are linked to emission projections, then to health and environmental impacts of air pollution, and finally to the economic consequences of air pollution. This paper finds that emissions of most air pollutants are projected to decrease by 2050, even considering a prolongation to current policies. In the three countries, ambitious policy action that stimulates the deployment of best available techniques is projected to lead to large emission reductions. The emission reductions are projected to lead to air quality improvements, as indicated by lower concentrations of fine particulate matter and ground-level ozone. Co-ordinated policy action would lead to further air quality improvements and in lower exposure to air pollution. Thanks to the air quality improvements, mortality and morbidity caused by air pollution are also projected to decrease. Finally, the health and environmental benefits are projected to be achieved with no significant effect on economic growth by 2050. Overall, this paper highlights that further co-operation to reduce air pollution in the Northeast Asia region could result in health, environmental and economic benefits.