China Policy Journal Volume 1, Number 1, Fall 2018 | Page 4

Water-Pollutant Discharge-Fee System in China Dajun Shen 1 and Ali Guna 2 * China Policy Journal • Vol. 1, No. 1 • Fall 2018 Abstract The market-based pollutant discharge fee has long been argued to be more cost-effective than command-and-control policies. China adopted an environmental policy instrument for dealing with its water pollution in the early 1980s. However, the serious environmental deterioration that unfolded in the following decades cast doubts on the system’s effectiveness. This article evaluates the water-pollutant discharge-fee system in China from the perspective of its design, top-down implementation, effectiveness, and external and internal driving forces. It discusses its role in China’s overall water-pollution control and extends the analysis to provide constructive insights into a recent major reform that converted the fees into environmental taxes. Keywords: water-pollutant discharge fee, market-based environmental policy instrument, China Sistema de tarifa de descarga de contaminantes del agua en China Resumen Durante mucho tiempo se ha argumentado que la tarifa de descarga de contaminantes basada en el mercado es más rentable que las políticas de comando y control. China adoptó un instrumento de política ambiental para hacer frente a su contaminación del agua a principios de los años ochenta. Sin embargo, el grave deterioro ambiental que se desarrolló en las décadas siguientes arrojó dudas sobre la efectividad del sistema. Este artículo evalúa el sistema de 1 School of Environment and Natural Resources, Renmin University of China, Beijing 2 School of Environment and Natural Resources, Renmin University of China, Beijing * Corresponding author: [email protected] 1 doi: 10.18278/cpj.1.1.1