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4.3.shi ji gao environmental and industrial policies

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ENV GLOBAL FORUM OCT 2016 - Session 4 - ShiJi Gao
"Environmental and industrial policies"

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4.3.shi ji gao environmental and industrial policies

  1. 1. OECD Global Forum on Environment “Towards quantifying the links between environment and economic growth” Paris, 24-25 October 2016 Environmental and Industrial Policies -- The Chinese Experiences GAO Shi-Ji, Ph.D Institute for Resource and Environment Policies DRC, China 1
  2. 2. China’s Environmental Governance in the Context of Ecological Civilization • An integrated and comprehensive approach: To establish the strictest source protection system, process control system, damage compensation system and accountability system. • An effective regulatory system at the core: To build and empower an effective environmental regulatory system. • Complementary policies: Environmental + Industrial Policies 2
  3. 3. Environmental Policies: Command & Control and Market-Based Command and Control type: • Standards • Environment Impact Evaluation • Emission Quantity Control • Emission Licensing • Information Disclosure Market-Based Policy Instruments: • Emission Charge • Emission Trade • Green Pricing • Green Taxing • Green Procurement • Green Financing • Pollution Insurance • Green Trade • Ecological Compensation • Ecological Labeling 3
  4. 4. Industrial Policies: Traditional and Green Traditional Industrial Policies: ` • For Declining Industries: supporting restructuring and rationalization of industries to eliminate excess production capacities • For Emerging Industries: supporting learning to acquire technological capability, produce and capture knowledge spillovers Green Industrial Policies: • Greening Industries: incentives to improve resource productivity and environmental performance in traditional industries . • Green Industries: incentives to create green industries delivering environmental goods and services in an industrial manner, and providing new green products for green growth 4
  5. 5. Environmental and Industrial Policies: Two Cases in China Case I: The Sudden Drop of SO2 Emission in China: The carrot and stick policy worked: The “regulation plus subsidy” policy has encouraged coal-fired power plants in China to install and use desulphurization facilities (scrubbers), thus reduced total SO2 emission quickly. Case II: China’s Solar Photovoltaic (PV) Industry Industrial Policies have encouraged entrepreneurial action to accelerate the development of China’s solar PV industry (designated as a strategic new industry). • Government supports (national): “Brightness Project”; feed in tariff; “Golden Sun” & “Roof program”; R&D Program; Poverty alleviation Program • Entrepreneurial efforts: mobilizing resources globally; adjustment to global competition • Local governments’ role important Steep learning curve in the solar PV industry achieved! 5
  6. 6. Turning Points for Emission of Traditional Pollutants Reached Earlier in China 6 0 20 40 60 80 100 0 50000 100000 150000 200000 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 Growthrateofelectricitycapacity(%) ShareofCoalfiredpower(%) SteelProduction(10,000ton) InstalledElectricityCapacity(10MW) China’ Steel Production and Electricity Production 钢产量(万吨) 6000千瓦及以上电厂发电设备容量 电厂发电设备容量增速 火电发电设备容量比重 Data Source: World Bank, Wind, DRC calculations China’s COD and SO2 emission peaked in 2007, with GDP per capita of USD2460, ammonia and NOx peaked in 2012 with GDP per capital of USD 6076. In both cases, GDP per capital levels were much lower than those of advanced industrial countries when they had their own emission peaked respectively. Steel (10,000 tons) 6MW and above power plant Growth of power capacity Percentage of coal fired power plants 0.0 500.0 1000.0 1500.0 2000.0 2500.0 3000.0 Total SO2(10,000 tons) SO2 Adjusted 1997 SO2 Adjusted 2011 Total NOx Nox Adjusted 2011
  7. 7. Turning Points for Emission of Air Pollutants: China vs Industrial Nations 7 Data Source: Chen et. al, 2015, DRC Pollutant s Peak (Turning Points) GDP Per Capita (current USD) GDP Per Capita (OECD data 2010) GDP Per Capita (1990 international USD ) SO2 USA 1974 6948 23184 16491 UK 1968 1896 21160(1970) 10410 Europe 1970s - - 10195 (29 countries) Japan 1965~1974 920~8954 - 5934~11145 China 2006 2069 5221 6303 NOX USA 1994 26578 34549 24130 UK 1989 15057 22314 16414 Europe 1990s - - 15966(29 countries) Japan 2002 31235 - 20517 China 2012 6188 - 8032(2010) VOC USA 1970 4998 21160 15030 UK 1990 17805 22058 16430 Europe 1990s - - 15966(29 countries) Japan - - - - China - - - -
  8. 8. 8China’s Industrial Policies Compared with Other Countries’ (From Zhang et. Al, 2016)
  9. 9. Thank you 9

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