China's short term environmental future is bright

Changing internal factors are giving rise to new green incentives in China.

|
Jason Lee/Reuters/File
A man stands in front of a windmill at the Gansu Jieyuan Wind Power Company on the outskirts of Yumen, northwest China's Gansu province, in this file photo. According to Kahn, China's short term environmental future is benefited by a more knowledgeable population with rising environmental expectations.

China's water quality is suffering from a recent industrial spill.  The simple economics of self protection offers a productive approach for studying this issue. Let's return to the classic Ehrlich and Becker 1972 model.   In the past, when Chinese officials anticipated that environmental disasters caused by industrial negligence would be suppressed so that the world wouldn't find out about it, such officials had little incentive to regulate industry to engage in costly precautions.

Now that China is growing richer and this means that the value of life and the willingness to pay to avoid risk is rising and with the rise of micro blogging and accountability, officials now know that when disasters take place that government officials will be held accountable.   When government environmental officials anticipate ex-post punishment when disasters do take place, they now have strong incentives to do their job ex-ante and to take regulatory actions that reduce the probability that industrial disasters occur in the first place.

This rise of "good" green dynamic incentives is an example of why I am optimistic about China's short term environmental future. Note the two driving mechanisms here.  Increased access to information about the consequences of industrial activity and the desire for health and quality of life among China's rising urban class.

Green Cities in China will be a new repeated theme of this blog!  Stay tuned.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to China's short term environmental future is bright
Read this article in
https://www.csmonitor.com/Business/Green-Economics/2012/0206/China-s-short-term-environmental-future-is-bright
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe