H. Keith Florig, CMU/EPP, florig@cmu.edu, SONG Guojun, Institute for Environmental Economics, Renmin University

In the 1980s, China instituted a nationwide system of self-reporting for air pollution emissions from industry.  Within China, these data are used for national and regional planning, setting emissions permit levels, and enforcement of the national pollution levy.  Outside of China, development economists frequently use such emissions data as an indicator of the environmental performance of industry.   Our analysis of reported emissions of particulates from hundreds of boilers in one medium-size Chinese city shows that reported particulate matter emissions are unbiased for all except large sources equipped with electrostatic precipitators.  Because these largest sources comprise a large fraction of total industrial emissions, citywide particulate emission figures underestimate emissions by a factor of two or more.