Estimating the economic cost of emission reduction in Chinese vehicle industry based on multi-objective programing

By enforcing emission reduction policies, the economic effects on different industry are quite diverse. Scientific estimation for this kind of effect has important realistic meaning for the industry development. A multi-objective programing approach integrated with input–output analysis model is used in this paper to evaluate the impact of emission reduction policy on the cost of reducing gas emissions and undertaking industrial adjustment in Chinese vehicle industry. The empirical results show that gas emission control has positive influence on vehicle industry production value. But, this influence is lower than the average macro-economic cost of CO₂ emission in China. These policy implications on vehicle industry are less serious than other high emission industries and, at the same time, the enforcement of reduction policy is a chance for new energy vehicle development.