Evaluating the Efficacy of Government Spending on Air Pollution Control: A Case Study from Beijing

Abstract

The reform and opening up of the Chinese economy over the last 40 years has led to rapid economic development. However, with the rapid expansion of the economy, increasingly serious air pollution is apparent. In order to control urban air pollution effectively, Chinese governments at all levels have invested large sums every year. However, it has become a difficult issue which influences public government decisions with respect to how and according to what standard to distribute financial funds so as to improve air quality while saving money at the same time. Taking Beijing as an example, this paper investigates the ten-year change in the annual daily mean of inhalable particulate matter (PM10), sulfur dioxide (SO2), and nitrogen dioxide (NO2) from the year of 2006 to 2015, researches the invested funds in environmental protection in Beijing, and establishes a relationship between the atmospheric indexes of the above three parameters and government-invested funds in environmental protection. According to model analysis, government financial input has an obvious influence on the improvement of air quality. However, during the long period of financial input, the degree of air quality improvement will reduce gradually as time goes by. There exists a direct link between the effectiveness of government financial input to promote air quality and the air quality index, which means when the pollutant standards index is poor (i.e., the corresponding pollutant concentration is higher), the effectiveness will be more apparent. On the contrary, when the index is at a good level, the effectiveness of government financial input is very small. To achieve the best air quality conditions, the government should set the detailed financial input at or over the first-grade standard according to urban air quality standards.