In what some commentators are calling a bold and audacious pledge,
President Xi announced to the UN that China will be carbon neutral by the year
2060. That gives the world’s second largest economy, and contributor of 28% of
global carbon dioxide emissions, four decades to literally clean up their act.
Carbon what? Good question! A carbon neutral economy is one which either
has no carbon dioxide emissions at all, or are able to balance their total emissions
to zero through carbon removal or carbon offsetting.
As an economy which has seen rapid development in the last three decades,
propelling them to their current position as the second largest economy in the
world, most of this growth has gone hand in hand with huge amounts of pollution
and environmental damage. For this reason, as well as being the planet’s
largest emitter of carbon dioxide, the message from the Chinese government has
attracted a lot of interest.
Whilst there are no specific details on how the Chinese government plan
to implement their goal, there is much optimism to draw from the simple fact
that this announcement has taken place. For an economy like China, a country
which has profited hugely from a gas-guzzling industrial sector, to publicly display
such strong support for combatting climate change is a beacon of hope.
It is likely that in the years to come China will initiate a variety of
different environmental policies to tackle their carbon emissions and get closer
to their 2060 target. In addition to increased investment in renewable energy
such as wind and solar, China is also on a mission to rapidly expand the market
for electric vehicles, with the government generously subsidising manufacturers
of both the cars and batteries.
THINK LIKE AN ECONOMIST!
Q1. Explain the relationship between strong economic growth and environmental damage.
Q2. On a supply and demand diagram show the effect of the Chinese government giving subsidies to manufacturers of electric cars.
Q3. Explain one more policy the Chinese government could use to protect the environment.
Q4. With reference to the information above, and your knowledge of economics, evaluate the impact of environmental policies on the economy of China.
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