The Impacts of China’s Resident Tourism Subsidy Policy on the Economy and Air Pollution Emissions

Abstract

Currently, tourism is an important contributor to the Chinese economy. The Chinese government issued Several Opinions of the State Council on Promoting the Reform and Development of Tourism and Several Opinions of the General Office of the State Council on Further Promoting Tourism Investment and Consumption, which are aimed at promoting tourism development. In this study, we use a multiregional and multisectoral computable general equilibrium model (CGE model) to simulate the effects of different levels of resident tourism subsidy policies on the economy and environment in China. Our analysis shows that tourism subsidies are beneficial to economic growth and support the transition to a low-carbon society. In addition, resident tourism subsidy policy has a positive effect on the national emission reduction of CO2, CO, NOX, PM2.5, and SO2. At the regional level, more significant emission reduction potential is present in provinces with more energy consumption and a more developed heavy industry, such as Shandong, Guizhou, and Inner Mongolia. Therefore, this study indicates that resident tourism subsidies can be an effective policy suggestion to promote the transition to a green society and air pollutant emission reduction.