This study measures the damages that surface ozone pollution causes within the Chinese agricultural sector under 2014 conditions. It also analyzes the agricultural benefits of ozone reductions. The analysis is done using a partial equilibrium model of China’s agricultural sector. Results indicate that there are substantial, spatially differentiated damages that are greatest in ozone-sensitive crop growing areas with higher ozone concentrations. The estimated damage to China’s agricultural sector range is between CNY 1.6 trillion and 2.2 trillion, which for comparison is about one fifth of 2014 agricultural revenue. When considering concentration reduction we find a 30% ozone reduction yields CNY 678 billion in sectoral benefits. These benefits largely fall to consumers with producers losing as the production gains lead to lower prices.
