"Energy inefficiency and environmental pollution remain the most threatening of

Chinas economic development problems." Assess this view.

After Chinas reform and opening up in 1978, China has increasingly become
energy dependent and polluting to the extent its economic growth now has to be
thwarted for growth to be sustainable. While the CCP has taken several initiatives
to cope with the energy efficiency and environmental degradation issues, the
extent of pollution caused in part by energy inefficiency and other sources in
China is so severe that it has become an issue of equal importance as sustaining
the economy, thereby effectively making it now a hindrance to the economy as it
costs China economically to clean up, be it in the form of expenditure or loss in
revenue. Therefore, this essay seeks to argue that energy inefficiency and
environmental degradation is a hindrance to economic development in the long
term as it eventually, one day or another, China would have to pay back.
Environmental degradation as a result of energy inefficiency has lowered living
standards in both rural and urban regions, unsettled social stability and thus
disrupted Chinas sustained economic growth. A consequence of rapid
industrialization and urbanization, air and water pollution have worsened by
Chinas heavy reliance on coal for energy. By 2007 China has taken over the US
for the first time as the worlds top producer of greenhouse gases. This is
worsened by the greater dependence on motor vehicles as the basic means of
transport and the problem of corruption. Water and air pollution by 2012 have
caused 750000 premature deaths and around 8% of GDP. If this goes on, it could
not only upset Chinas socio-political stability, the foundation of Chinese
economic development, as people begun to fight vigorously for their
environmental rights, it can also affect Chinas food production, resulting in
higher costs of living, hence sowing seeds of social dissents.
Environmental degradation as a result of energy inefficiency also resulted in the
depletion of clean water supply and arable lands, which are essential for
sustaining Chinas economic growth. The quick solution of using polluting source
of energy to fulfill Chinas energy needs has distorted Chinas ecological climate.
Over one-quarter of Chinas land is now desert. China has lost twice as much
forested land over the century as it now possesses. More than a third of Chinas
land is being scoured by serious erosion that is putting the countrys crops and
water supply at risk. Soil is being washed and blown away not only in remote
rural areas but also near mines, factories and even in cities. Each year, about 4.5
billion tonnes of soil are lost, threatening the countrys ability to feed itself. If the
loss continuous at this rate, harvests in Chinas north eastern breadbasket could
fall 40% in 50 years, adding to erosion costs estimated at 200billion yuan
between 2001 and 2010 alone. Only 6 of Chinas 27 largest cities supply drinking
water that meets the states standards. Outside Chinas major cities, the growing
number of privately run cottage industries has dramatically increased local water
pollution.
Health problems arising from poor environmental conditions due essentially to
energy inefficiency can strain private and public resources, diverting attention
and capital that could be devoted to sustaining economic growth. Hundreds of
millions of Chinese people still rely on fouled water that will cost billions of
dollars to clean. For example, in 2003, the government gave 60billion yuan to
environmental protection, including forest protection, reclaiming farmlands for
forests and combating desertification. China is the world largest investor in clean
energy, spending USD 34.6billion in 2009. The government is offering 50000yuan
subsidies for the purchase of plug in hybrid electric vehicles and 60000yuan for

pure electric vehicles in five cities. The Golden Sun Program will subsidize 50% of
the costs of building above 500megawatts solar power projects and transmitting
and distributing the solar power form those projects. In remote areas, the
incentive will go up to 70%.
Some have argued that the effect of environmental degradation caused by
Chinas energy inefficiency on the economy has been limited by the
governments drastic policies. The capital adopted several measures including
shutting down construction sites and factories around Beijing while getting more
coal-burning homes and enterprises to convert to gas. More vehicles that fall
short of emissions standards will be removed from the roads and petrol stations
must offer high-quality petrol and diesel. Over 30 officials in the southern city of
Nantong were the latest to be exposed for taking bribes from the enterprises to
condone their polluting activities. China has succeeded lowering its energy
consumption per unit of GDP by 20% by 2010. China shut down small thermal
power-generation units with a total installed capacity of 34.21GW, phased out
60.59millionn tonnes of backward steel-making capacity of 34.21GW. Chin
increased in wind power generating capacity from 340MW to 10GW. By end of
2007, more than 26.5million rural households were using household bio-gas
digesters, thereby reducing carbon emissions by 44million tonnes.
Innovative solutions have also been devised by CCP to combine the need for
environmental conservation and hence energy efficiency with the pursuit of
economic growth. Sinopec has upgraded its desulphurization facilities to produce
cleaner fuel. Under Chinas 11th Five-year Plan, it is developing hydropower, solar
power, wind power, natural gas, biomass fuel and methane. Wind resources are
concentrated in the northern and western regions of China, as well as along the
coast and are suitable for both rural village electrification and large scale, grid
connected electricity production. Current utilization of solar energy induces small
scale uses, such as household consumption, television relays and
communications but it increasing steadily, especially in the number of solar
kitchen ranges to substitute for the use of coal. While solar and wind power
provide significant renewable energy potential, Chinas growth in renewable
energy in the next decade will be dominated by hydropower, particularly with
completion of the 18.2gigawatt Three Gorges Dam project in 2009.
Despite the determined measures taken to stem environmental degradation and
energy inefficiency, these efforts continue to be undermined by challenges such
as prerogatives for rapid growth, corruption and weak enforcement.
Environmental problems therefore continue to hinder Chinas economic growth.
Many believe that what China lacks is strong political will to enforce anti-pollution
laws and measures to overcome the vested-interest groups that block them. One
main obstacle to environmental reforms that netizens have pointed fingers at are
state-owned oil giants. The oil companies have dragged their feet over producing
better quality, cleaner fuel so that cars can meet emission standards, because
refining cleaner fuel would jack up their costs. The pollution problem really lies in
Chinas oil standards which are not high enough.
In conclusion, the CCP has taken several initiatives to cope with the energy
efficiency and environmental degradation issues. However, the extent of
pollution caused in part by energy inefficiency and other sources in China is so
severe that it has become an issue of equal importance as sustaining the
economy, thereby effectively making it now a hindrance to the economy as it
costs China economically to clean up, be it in the form of expenditure or loss in

revenue. Therefore energy inefficiency and hence environmental degradation is

a hindrance to economic development in the long term as it eventually, one day
or another, China would have to pay back.