This special issue covers several important aspects of China's environmental policy, ranging from evaluation of government programs (biogas and the Sloping Land Conversion Program) that aim directly to enhance the rural environment, to the reform of natural resource sectors (collective and state forest reforms) that set foundations for the sustainable use of natural resources, and to the impacts of urban environmental policies (including urban transportation management and industrial pollution control policy). We provide an overview of the topic and a brief introduction to each of the contributed papers.

This study assesses a new generation of smallholder biogas, an applied sustainable energy technology currently being rolled out on a massive scale in rural China. In the past, the implementation of biogas programs has been largely disappointing, in China (and elsewhere). User satisfaction with the new program is high, based on purposively collected data from 2,700 households in five provinces, and the available evidence suggests tangible environmental and economic benefits. There are strong indications of fuel switching away from fuelwood and crop residues. Less time is spent on fuelwood collection and cooking, which benefits women especially. Adopters save on fertilizers by using biogas residues. Finally, problems with suspension and interrupted supply appear lower than in earlier studies. Overall, these initial findings are grounds for optimism about the potential for scaled-up smallholder biogas to deliver safe and clean rural energy, in China and beyond, provided critical conditions are met.

In this paper we evaluate the long-run sustainability of China's Sloping Land Conversion Program (SLCP) by investigating the determinants of farmers’ self-predicted post-program land use decisions. We use data from a household survey conducted in 2005, with a particular focus on a dependent variable that reflects farmers’ ordinal responses to a question about their probability of converting the enrolled lands back to cultivation after the program ends. First, we find that targeting the program on steeper sloped and lower quality plots can significantly decrease the probability of reconversion. Second, there is a significant and robust household income structure effect on the reconversion probability. Third, participating households with the right to decide what to plant on enrolled land have a higher probability of maintaining the reforested land after the program ends. Finally, subsidy shortfall has a positive influence on the probability of reconversion.

This paper assesses how tenure reform in China's collective forest sector affects Chinese farmer households’ perception of tenure security and propensity to invest in their forestland. A large database consisting of information from 3,180 households in eight provinces from south to north is used to explore factors correlated with more strongly perceived tenure security and determinants of forest-related investment. The study adds to the limited research testing whether there is endogenous causality between investment and tenure security in forestland, and finds that investment was not undertaken to enhance tenure security. In addition, the data allow for differentiation between perceived tenure security and contracted use and transferability rights. Overall, stronger contracted rights were found to affect investment. China's forest tenure reform – where individual households can manage forestland, empowered by legal certification and stronger contract rights – has thus enhanced tenure security and encouraged forest investment.

State-owned forest enterprises (SOFEs) in northeast China play important roles both in timber production and in the maintenance of ecological security. This paper examines the effects of a number of policy measures on the behavioral choices of the SOFEs. The results show that the extent to which SOFE supervising authorities emphasized the improvement of forest resources in their annual evaluation of the SOFEs had significant impacts on the harvest and investment decisions and the development of forest resources. Promotion of the management and utilization of non-timber resources, as well as reforms aiming to increase the efficiency of forest protection and management, reduced timber harvests and increased investment, which in turn led to improvements of forest resources, although the effects were small. In contrast, reforms aimed at timber harvest and afforestation activities actually contributed to increasing timber harvest, which affected the development of the forest resources negatively.

As an international metropolitan area undergoing rapid development, Beijing is facing a sharp rise in the volume of motor vehicles and mobility, which has become the major contributor to the air pollution in this city. This is evident in the recent ranking of Beijing as the most congested as well as the most polluted city in the world by the Millennium Cities Database. Local government has adopted a battery of policies to reduce these problems. In this study, we investigate the impact of increasing the fuel tax on travel mode choice based on a large sample of travel survey data. We estimate that if the price of gasoline increased to a moderate level, 11.53 RMB/liter, the total car volume on the road would be reduced by 7 per cent, which corresponds to a reduction in CO2 emissions of 786,002.4 tons, or about 8 per cent of vehicular emissions from private cars and company-owned cars in Beijing.

Using China's provincial economic and pollution data from 1992 to 2008, we employ data envelope analysis and econometric analyses to explicitly estimate technical efficiency and examine the role of technical efficiency, pollution control instruments (pollution levy and pollution quantity control) and prices of production inputs on pollution intensity. We find that an increase of labor wage and a decrease of capital cost are associated with an improvement in technical efficiency. The levy rates of air pollution improve technical efficiency but pollution quantity control targets have no statistically significant effect on technical efficiency. On the other hand, technical efficiency, the effective levy rates, pollution quantity control targets and capital cost have a negative effect but wage has a positive effect on pollution intensity. The importance of production input prices in pollution intensity and technical efficiency suggests alternative channels for industrial pollution control as well as cautions for the unintended consequence on the environment if any policy changes are made relating to labor and capital costs.