China’s Coming Environmental Renaissance

Local Officials Have to Care

Economy blames much of China’s pollution on local officials who have few incentives to prioritize environmental protection. This is beginning to change. The city of Wuxi recently responded to the toxic pollution coming out of local water taps by ordering the closure of 1,340 factories that were dumping their effluent into Tai Lake. They did this because outraged citizens had begun protesting strenuously, presenting significant risk to the careers of local officials. Of course, those polluting factories had been supported by those same officials in order to meet the demands for jobs and growth. But a newly awakened Chinese populace is now realizing that a growing economy isn’t worth much if the air and water are poisoned as a result.

The combination of grassroots revolt and political pressure from Beijing is clearly having an impact on local and provincial governments. Increasing numbers of officials, including in Guangdong, Chongqing, and Shandong provinces, are working hard or vowing to promote the concept of “greener development.” The deeper challenge facing China’s governmental bodies is similar to that in much of the developing world and also in the United States: economic development and environmental progress are often at loggerheads, and continued vigilance is required to ensure that the environment does not lose out as a result. The stakes are simply higher in China, due to the scale of ecological problems and the intensity of the modern Chinese economy.

Government Reforms Are Still Needed

What is lacking in the short term in China is a sound system of checks and balances that can hold local officials accountable and give violators their due punishment. Such a system can guarantee that all promises are translated into actions, and that the good are rewarded and the bad punished. This is where an active civil society, a free media, and a better-educated public come in. With the formation of a strong social mechanism for accountability, together with bolder reforms in the country’s judicial system to render it more independent and powerful, the government can better define itself as policymaker, concentrating its limited personnel, expertise, and finance on developing rules and standards that are unambiguous, accessible, and easy to follow.

For the long term, Economy is right that China’s government needs a thorough, bottom-up reform. The current political system is intrinsically flawed. Any country directed by a good leader or leaders is prone to unpredictability. What if today’s leaders are replaced by less-than-satisfactory ones? What if policies are disrupted due to position changes? To reduce these risks, it is necessary to translate leadership into standard norms of governance. This will come much sooner under pressure from a populace that is better educated about its own rights and interests. China’s environmental problems may be a catalyst in this broader movement.

Technological Innovation Is Key

In addition to political reform, technological innovation holds equal, if not greater, weight in China’s ability to reverse its environmental situation. The country has already taken the lead in adopting many green technologies, particularly in the area of renewable energy. It is now the world’s largest market for solar hot water systems and is home to nearly two-thirds of global capacity. More than 10 percent of Chinese households now bathe in water heated by vacuum tube solar collectors, rather than the large gas or electric water heaters found in most U.S. suburban homes. The International Energy Agency reports that in 2005, China saved nearly 14 million tons of carbon dioxide emissions through its use of solar heating systems. Vast “forests” of the units are jostling for space on the rooftops of entire neighborhoods in cities like Rizhao and Kunming. The devices are easy to manufacture, and costs have fallen dramatically as the technology matures and competition thrives in a freer market.

Wind power, meanwhile, is now the fastest growing power-generation technology in China, with existing capacity doubling during 2006 alone. Although China was only number five in added capacity behind Germany, Spain, the United States, and India, the potential for further expansion and cost reduction is huge. China’s solar PV industry has literally developed from scratch into a dynamic, globally competitive sector within five years, driven by ever-rising global demand and resulting in the creation of several world-leading manufacturers and a group of new billionaires. Although most of China’s solar cells are currently exported, as Chinese companies succeed in driving down costs, they will no doubt find their way into the huge domestic market. Similar technological advances could have dramatic implications in dealing with wastewater, solid waste, and the energy efficiency of China’s buildings.

With its expanding industrial base, increasingly skilled labor force, and geared-up R & D efforts, China brings hope—not despair—for a global leap forward in environmental stewardship.