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Monday, January 22, 2007

#24 A Cough Too Far

When we think about China, images of its current success story come to mind: the land of opportunity, near double digit growth, the world's factory, etc. There is, however, another face to China; one that is devastating to the health of not only its own inhabitants, but also for the people residing in neighboring countries.

China has become the worst polluter in the world. It is estimated that there are nearly 400,000 pollution related deaths per year. In addition, China is now believed to be the largest source of non natural emissions of mercury - another toxic substance. With environmental damage costs estimated to be between 8 and 15 percent of GDP, this problem has come to extend beyond being merely a regional issue to becoming of global concern.

The surge of industrialization is much to blame for its impact on the environment. The health of millions of Chinese citizens is affected. The source of much of China's pollution comes from its heavy industrial basis. Coal fired power plants are at the heart of China's industrial machine. Coal based electrical generation is one of the dirtiest forms of electricity generation. With little or no regulation or pollution controls, the air in many of China's industrial areas is beginning to resemble a parking lot at a Lada convention.

Not only the air is poisoned. Another grave problem is the poisoning of much of China's water sources. Industrial toxins such as sulfuric acid, lead, and mercury are poisoning China's ground water supplies. Ground water is to a nation what the placenta is to a baby. The very fact that water consumption is a health hazard should serve as a wake-up call: evidently polluted areas are reporting a 30 fold increase of cancer cases. Even factories have to close due to the lack of safe water. The costs of these shutdowns are calculated at 14 billion of lost output annually.

By not claiming responsibility, China faces fronting the costs of pollution to those that can ill afford. The costs of cancer and respiratory illnesses are far beyond what the Chinese poor can afford. China is not a free society and citizen activism is not encouraged. Activists are threatened with jail terms. Without free press in China, much of the weight of the issue is expected to be stuffed under the carpet.

World leaders need to unite on the issue of pollution. After all, clean air is a global good inhaled by everyone. The problem of China's pollution monster is thus a global one. And for that reason it needs a global solution. Ratifying the Kyoto treaty on CO2 could be a healthy first step to a cleaner and safer mode of industrial production. Not only China, but also the US and Australia must be made aware that the time to act is now, not tomorrow.

5 comments:

REM said...

Good article, guys. This is one great reason to expand the commercial nuclear power industry in China. Today's Japan Times reported that Japan-China cooperation in the nuclear industry will soon greatly increase, not least to expand opportunities for the Japanese nuclear industry.

Nuclear power is cheap (after you get started) and clean. And yes, folks, it really is safe (just don't get the Russians involved). Best of all, the Chinese already have nuclear weapons, so we don't have to worry about a weapons program.

REM said...

And no, I really didn't have to use the word "industry" three times in two sentences.

The Weekend Economist said...

Thnx for your comments rem,

nuclear energy is being expanded in china, which, in the short run is a better solution than coal. Coal fired plants can however be improved by investing in scrubbers and other filters.

valid remark also about the weapons point.

nuclear power is getting more expensive...prices of nuclear fuels have risen by more than 200% and are set to rise with further demand. Just like fossil fuels the reserves of nuclear fuels is also limited. The mining of these fuels is also a big environmental hazard.

On a positive note, China has one of the largest "private" solar power companies. So at least from the private sector we are seeing a positive change of direction.

Anonymous said...

Once more a very interesting piece! Keep up the good work.
As you mentioned China is coughing because of the surge in industrial activity. However, that surge is due to the fact that China is producing much cheaper products to be exported. If they invest in cleaner production, it will become more expensive. Perhaps we could levy an ecology tax on Chinese products that will make it economically interesting to them to invest in this aspect of production?

The Weekend Economist said...

Sir- an ecology tax is what we would like to see happening for China to clean up its act. Polluters who don't care for the environment must understand that there are financial consequences. Only with a tax will we create an incentive for cleaner production.