China’s Policy

With China’s rising cases of people being affected by breathing noxious stuff like combustion dust, thick smog, and other contaminants stirred in the air by the country’s numerous industries, the country should be looking to deal with this issue. The government should create policies that will help them in decreasing air pollution. Patients who suffer from the chronic obstructive pulmonary disease (COPD) are required to stay indoors to avoid inhaling pollutants, which can aggravate their COPD. However, the only place they can venture to get healthcare is outside. Similarly, China faces excruciation of one or both choices as it attempts to balance its economic growth with the prerequisite to clean up its enormously dirty air.

Therefore, the Chinese government should adopt the policy of tax as a way of reducing air pollution. The idea usually is to make customers and manufacturers recompense the full social cost of creating pollution. The advantage of this policy is that the government will raise considerable revenue that might be used in financing other pollution schemes of reduction. This policy also offers a market stimulus for organizations to provide more proficient engines that create less pollution. For instance, increasing the petrol tax will create an incentive for consumers and organizations to shift to less fuel exhaustive engines.

However, this policy has a downside. The reason is that demand might be quite rigid and that an upsurge in the petrol tax might do little to diminish need and only reduce the pollution marginally. However, in the long term, demand will become more elastic as persons switch to other transport forms over time. The difficulty of enforcing this policy is regularly political resistance as individuals do not like paying new taxes. This is even though this policy has the objective of reducing air pollution in the long term.