Economic Analysis of the Beijing Green Olympics: Implications on Environmental Protection in China

The rapid economic development and motorization in the last three decades in Beijing has resulted in the deterioration of Beijing’s air quality. Since 1998, the Beijing municipal government has made a great effort to improve Beijing’s air quality, resulting in significant progress in reducing air pollution in Beijing. However, the air quality is still below the international health standard, especially the particular matter, PM10. This could be a challenge to the Government’s promise of clean air during the 2008 Olympics. The objective of this paper is to evaluate, using cost/benefit approach, the measures that Beijing has taken to achieve the goal of a Green Olympics. This paper can have important implications for designing environmental strategies during China’s economic transition.