There is considerable concern about the effectiveness of China'spollution control policies. Despite government intervention, measuresof pollution continue to rise. However, this does not mean thatpolicies have necessarily been ineffective. What matters for theeffectiveness of policy is not the overall level of pollution butwhether the extent of pollution is improving relative to what itotherwise would have been without a policy intervention. This paperassesses the effectiveness of China's pollution levy system on waterpollution, air pollution, and solid wastes using econometrictechniques to estimate the effectiveness of government intervention.
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