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Opinion / Commentary
Economic policies can control polluters
By Pan Yue (China Daily)
Updated: 2007-09-19 07:22
A policy based on economic leverage such as prices, taxes, and insurance
is called for in a bid to control the behavior of economic entities to
ensure that there is harmony between economic growth and environmental
protection.
Compared with the traditional regulating mechanism based on government
command, a new economics-environmental policy is geared to readjusting
the economic interests of entities in environmental protection and
resources distribution and, in turn, introducing a set of incentives and
restraining mechanisms needed in the tapping of resources in a
sustainable way.
The new mechanisms boost the development of environment-protection
technologies, sharpens the competitive edge of economic entities, reduces
the cost of environmental protection and lowers government expense in
supervising environmental projects.
Experience in developed countries shows that this kind of
environmental-economic policy is by far the most effective way in
tackling environmental problems in the long term.
In China, there is a scarcity of such environmental-economic means and no
complete set of policies in this regard has taken shape. The root cause
lies in the failure to calculate the costs sustained by those who do not
implement environmental measures and the costs born by those who do. In
the absence of the calculation, the decision-making lacks the support of
scientific data.
The pressing situation, however, does not allow us to take time to effect
ideal environmental-economic policies when everything is ready. We have
to simultaneously calculate the costs, conduct research, launch pilot
projects, sum up experience, and mobilize the forces of all sides
concerned. All this serves to push for the establishment of the framework
of China's own environmental-economic policy.
China's environmental-economic policy involves seven aspects.
First, a "green taxation" regimen needs to be introduced to reward those
who do right in environmental protection and punish those who do wrong.
Second, rigorous enforcement of fee collection is needed to redress the
situation that doing wrong costs little while doing right needs a lot of
money.
Third, a "green-capital market" ought to be introduced to cut off the
channels through which the polluters obtain capital.
Fourth, ecological-compensation pilot projects should be launched to
explore the way for a sustainable-development strategy.
Fifth, a discharge-right exchange market ought to be set up in order that
market forces help achieve the environmental-protection goals and
optimize discharge quotas.
Sixth, we need to largely promote "green trade" in the context that
Western countries are setting up "green" trade barriers.
Seventh, we need to strengthen environment-risk management through market
means in order to provide a policy platform for enterprises, the public
and the government.
All the seven policies are not new, but they are slow in being adopted by
China.
Why? Because they involve power distribution between different government
departments and realignment of interests between various sectors, regions
and economic entities.
In view of this, this author, in his capacity as a senior official of the
State Environmental Protection Administration, would like to make it
clear we will lend our unconditional support to all authorities that take
it upon themselves the responsibility of implementing the
environmental-economic policy. We will try our best to help them. On
condition that the work gets done, we have no "sectional interests" to
speak of.
Environmental problems are very pressing ones and we cannot afford to
wait for the problems to be settled, because involved are not only
China's image among the international community, but also the country's
stability, the harmony of the Chinese society, the nation's sustainable
development and people's health.
The State Environmental Protection Administration can formulate a package
of environmental-economic policies in one year, complete primary pilot
projects in two years, and China's environmental-economic policy take
shape in four years.
The new environmental-economic policies can become an important milestone
in China's road toward modernization.
The "green-oriented" market economy will be a mature market to nurture a
large number of environmentally friendly enterprises.
The "green-oriented" society will be mature one to cultivate a large
number of "green-consciousness" citizens.
The "green-oriented" government will be a mature one to turn out a large
number of officials committed to "green administration".
In this scenario, a "green China" is close at hand.
The author is vice-director of the State Environmental Protection
Administration.
(China Daily 09/19/2007 page10)
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