English | 中文版 |  Русский

Breaking News:

Source: www.asiaecon.org |

CHINA: GLOBAL RECESSION BENEFITS THE ENVIRONMENT


  China has started to realize that the decline in its economic activity has had a positive effect on the environment. Obviously, less green house gases are being emitted, which are predominantly the reactors of the global warming phenomenon. Recently, Peking has been targeting the issue of how to lower its emission of Carbon Dioxide resulting from its rapidly growing Industrial and transportation sectors, in the atmosphere following the end of the current economic slow down.


 

China has started to realize that the decline in its economic activity has had a positive effect on the environment. Obviously, less green house gases are being emitted, which are predominantly the reactors of the global warming phenomenon. Recently, Peking has been targeting the issue of how to lower its emission of Carbon Dioxide resulting from its rapidly growing Industrial and transportation sectors, in the atmosphere following the end of the current economic slow down.

 

Currently, the Chinese government is facing a lot of criticism resulting from unfavorable economic conditions. However, the environmental stance of china has been debated critically over the past decade. Many disagree with the Chinese government’s policies towards green gas emission, as China’s first priority has been to tend to its economic growth rates, in doing so preserving its “economic miracle”.But little attention has been given to the environmental consequences resulting from such a miracle.

 

However, China is now in a position to use alternative methods that could satisfy its environmental critics. For example, on January 19th, the Chinese authorities lowered gas prices between 14% and 18% but consequently imposed a higher tax on gas consumption. This imposed tax substitutes for the decrease in price while regulating spendings on consumption. This mentioned tax is flexible for modification in case of future variations in oil prices.

 

Furthermore, China has allocated 4 trillion yuans from its $584 billion economic stimulus plan aimed at reviving the economy, towards transforming high energy consuming industries, that consequently contribute highly to the rate of pollution, into more environmentally friendly ones. Another 3.5 billion yuans were dedicated to general environmental projects.

 

Moreover, China doubled its investments in its public electricity company making it reach around 1.2 trillion Yuans, while also approving many projects for construction of nuclear energy plants to take effect promptly. China has also managed to resist calls for mineral sector assistance to lower taxes on imported aluminum and other high energy consuming products, even though domestic production of these products is falling.

 

However, a big portion of the economic stimulus plan is focused on construction. Hence, it would be very difficult to avoid an increase in steal and cement producing factories that rely heavily on carbon as their main operating fuel source (80%). Thus, this coming period will present China with challenges of conflicting nature; the economy versus the environment. Moreover, in December of 2009, the world is faced with the challenge of a substitute for the Kyoto agreement, where all eyes are turning on China, as it is one of the major green gas producing countries in the world.

 

It is clear that the Chinese government aims to reduce its energy consumption by at least 20% by the end of this decade.  However, in order to do so, policy adjustments towards the consumption of coal as a main energy source must be altered.  Furthermore, by the end of 2009, the Chinese authorities will be able to present statistical data in hopes to prove that it has been successful in lowering its energy consumption by the targeted 3.46% between January and September 2008 and that of the same period in 2007.

 

Thus, with the current global economic situation, China faces a golden opportunity to place itself on the path of a green revolution development strategy.

 

Source: www.AsiaEcon.org
Please send comments and constructive suggestions to feedback@AsiaEcon.org

 

Source: www.asiaecon.org |


More Special Articles - Asia Business & Economy Articles