China is one of the world's leading users of coal and is therefore faced with serious coal-smoke pollution in urban areas. But pressure is mounting for a solution and this can only intensify following Beijing's successful bid for the 2008 Olympic games. To find just such a solution, this study has investigated the potential for natural gas as a cleaner fuel for China's cities. The study shows that natural gas has clear environmental and economic benefits over coal. The study found that the high cost of substituting natural gas for coal was the main factor hindering the adoption of the cleaner fuel. To overcome this hurdle, the researchers recommend a number of policy recommendations that would reduce the cost of natural gas and accelerate its take-up as fuel of choice.

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