Economics

Cutting China’s Smog Will Come at a Massive Cost

Crunching the numbers

The Lujiazui Financial District in Pudong in smog in Shanghai, China, in December 2013.

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China’s air pollution is big news. ’Under the Dome,’ a recent documentary on the causes and consequences of the country’s smog, was viewed 100 million times within a few days of its release. At the National People’s Congress, Premier Li Keqiang said the government would fight pollution like it has fought poverty.

Unlike the fight against poverty, the struggle against pollution comes at a cost in terms of growth. Fewer volts from coal-fired power stations, slower growth in car ownership, and reduced production of steel and cement are all necessary steps to clear China’s smog. All of them also threaten to dent industrial output.