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Beijing Air Pollution Linked to Coal-Powered Steel Production

February 16, 2017, the New York Times writes:

Despite promises to cut steel overcapacity, China actually brought more steel production online last year, resulting in a surge in air pollution in northern China, especially around Beijing, according to a report released this week by Greenpeace East Asia.

The growth in operating capacity was more than twice the total steel making capacity of Britain, the report said.

The increase in steel production, which is powered by the burning of coal, also means that levels of greenhouse gas emissions from that sector almost certainly grew last year, compared with 2015 levels. Greenhouse gases are the main factor behind the acceleration of climate change. The steel industry is the second biggest emitter of carbon dioxide, the main greenhouse gas; the first is power generation, which also relies mostly on coal.  Read more...

Properly structured carbon taxes could internalize the costs associated with carbon and remove the incentive for state-owned steel production of "cheap" steel.