In this issue of Lantau Pique, we argue that coal use per se is not China’s major air quality problem. Poor local air quality is not due to how much coal China is using, but rather how China uses that coal.  Policies to actively shift baseload coal generation to baseload gas-fired generation in Asia risk being amongst the least cost-effective ways to improve local air quality given available air quality control system technologies, or to reduce carbon emissions, given regional and global fuel market dynamics.  Smarter environmental regulation is needed — not specific fuel mix constraints.