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Chongqing is a heavily polluted industrial megacity in China. We have estimated the environmental cost of water pollution in Chongqing. Limiting our inquiry to the resource cost, i.e. real resources spent or production possibilities foregone because of water pollution, our estimate equals 1.2 per cent of Chongqing gross product, with a subjective 95 per cent confidence interval of (0.9–1.5). Damage to agriculture constitutes the largest share of costs, 56 per cent, while damage to health and damage to industry make up 20 per cent and 18 per cent, respectively. The cost estimate of 1.2 per cent, which employs the human capital approach, is sensitive to the valuation of statistical lives. A calculation using willingness-to-pay for avoiding premature death sets the total cost at 4.3 per cent of Chongqing gross product.

Facing the mounting pressure on energy security and increasing environmental concerns about air pollution and climate change, the Chinese government set a mandatory goal of 20% reduction of energy intensity in its 11th Five-Year Plan period (FYP, 2006–2010). In this paper we use Shanxi province to illustrate how policies and measures are implemented in practice at a provincial level as a response to the National FYP issued by the central government. Local policies are described and their effects are analyzed. We compare reported energy saving achievements with our own estimates and conclude that the achievements in Shanxi probably have been substantial since the start of the 11th FYP period. The most important measures taken by provincial and local governments seem to be in the secondary sector, such as Top-200/Top-1000 program and phasing out outdated technologies. However, Shanxi has still a long way to go to achieve satisfactory energy use. Further improvement of energy intensity will require continuing efforts. Although many measures are necessary, improving the energy efficiency in heavy industries and reducing the dependence on these industries should be particularly effective. ; NOTICE: this is the author's version of a work that was accepted for publication in Energy Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Energy Policy,39(7),(2011). http://dx.doi.org/10.1016/j.enpol.2011.03.085

Facing the increasing environmental degradation locally and globally, the Chinese government set mandatory goals of 10% reduction of SO2 emission in its 11th Five-Year Plan period (FYP, 2006–2010). In this paper we use Shanxi province to illustrate how policies and measures are implemented in practice at a provincial level as a response to the National FYP issued by the central government. Local policies are described and their effects are analyzed. We find that the 11th FYP goal for SO2 pollution reduction in Shanxi has been surpassed. SO2 reduction from estimated baseline level was calculated for the FYP period in order to identify which sectors have had the largest reductions. Regarding SO2, we find that Flue-gas desulfurization (FGD) in power plants has been the most important, while either the FGD operation rate or the efficiency, or both, are much lower in practice than officially required. SO2 emission reduction from closing down outdated production capacity is small according to our estimates. This is due to the comparatively small use of coal in the units being closed down in Shanxi. Necessary steps to achieve the targets in the 12th FYP are briefly discussed ; "NOTICE: this is the author's version of a work that was accepted for publication in Environmental Developmen. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Environmental Development;4. http://dx.doi.org/10.1016/j.envdev.2012.09.002"