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Type of the Solution
Policy intervention, Financial Incentives, Financial tool
Affected Sector
Environment
Description of the solution
Mechanism aiming to use economic leverage to mobilize the incentives of local governments at all levels to tackle pollution. Based on the year-on-year changes in ambient air quality in each county and district, implementing assessment rewards and penalties and ecological compensation.
The improvement of ambient air quality in municipalities is assessed on a quarterly basis centred on PM2.5, and the amount of eco-compensation funds received by each municipality is determined accordingly. Municipalities with deteriorating air quality are required to pay eco-compensation funds to the provincial level to compensate municipalities with improving air quality.
Socio-economic effects
Improve air quality
Type of Measure
2. policy/regulation measure
Type of sub-measure
5. (none)
Who led the solution
Local government
Timescale of implementation
Short-term (up to 1 year)
Other Notes
1. The promotion of the mechanism is closely related to the development of green finance. As a market-based method, the mechanism forces local governments to strengthen environmental protection, which will also increase enterprises' green investment for cleaner production.
2. Ecological compensation in air pollution governance: China's efforts, challenges, and potential solutions. Available at: https://www-sciencedirect-com.ludwig.lub.lu.se/science/article/pii/S1057521921000442?via%3Dihub#fn0010.
Links to the solution
Consent to share form or official link.
Comments
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