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Carl Pope

Carl Pope

Posted: October 7, 2010 01:32 PM

For the first time, India's current GDP growth rate exceeds China's. The big concern in India is not whether the growth will continue but what the impact of too-rapid growth might be on food prices (in the short term) and on the environment (longer term). India's government, like China's, is serious about finding a lower-carbon pathway -- however reluctant they may be to have a binding international agreement tie their hands going forward.

But that's where the similarities end. India emits far less carbon, both overall and per capita, than China does. It sees itself as a nation that is poor in carbon fuels. Indian power companies are anxious about a world in which massive reliance on fossil fuels forces them to compete with the Chinese on international oil and coal markets.

India isn't yet locked in to carbon-based growth. Gasoline and diesel are heavily taxed in India -- and the government just placed a new levy on coal. Renewables already provide a larger percentage of power in India  than in the U.S. or in China. Seventy percent of the buildings that India will have in 30 years haven't been built yet -- they can be as wasteful or as fuel-efficient as this generation of Indians chooses to make them. And the government has put together an ambitious energy-efficiency program.

Unlike China, where massive state subsidies flow to companies that are innovating with clean-technology products, in the Indian government's emphasis is on subsidizing poor consumers, including those who rely on kerosene for lighting and cooking. Farmers get electricity for free -- but for only a few hours per day. The electrical grid has not yet been built out, and hundreds of thousands of Indian villages have no electricity at all. The cost of extending wires to villages is enormous -- while generating electricity from coal may cost $.10/kwh, every additional kilometer of village grid connection adds $.02 kwh. For any village more than a few kilometers from the grid, then, distributed solar (currently running about $.24/kwh) is cheaper than conventional power. Grid parity is here for much of this country, and the government has an ambitious, 20-gigawatt solar goal.

So the conventional American narrative, in which India and China are lumped together as our competitive manufacturing threats and as looming global-warming heavies, is fundamentally flawed. (The U.S. does not, for example, run a major trade deficit with India, in spite of President Obama's current politicking against outsourcing to Bangalore.)

India's strategic approach is also very different from China's. The emphasis is much more on building globally competitive companies than on government-financed state corporations -- and Indians worry that their hugely decentralized and democratic society won't be able to move as quickly as the behemoth to their north can. Ambitious government announcements are routinely scorned as unlikely to be implemented in practice.

The competition between these two nations for low-carbon preeminence is critical for the climate. But it's also critical because it will influence which development model that the rest of the world is likely to embrace -- top-down or bottom-up. Since the U.S. has far more in common with the Indian model than with the Chinese model, our two nations really ought to collaborate more closely. If bottom-up India can't compete with top-down China, then the bottom-up American economy is likely to be in big trouble.

 
 
 

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09:27 AM on 10/08/2010
What a surprise. I thought Indian low-carbon development model was all about "cows instead of cars" and "no industrious development, no pollution".
06:18 AM on 10/08/2010
China has the world highest number of deaths attributed to air pollution.

According to Chinese government statistics 300,000 die each year from ambient air pollution, mostly from heart disease and lung cancer. An additional 110,000 die from illnesses related to indoor pollution from poorly ventilated wood and coal stoves and toxic fumes from shoddy construction material. The air pollution death figure is expect to rise to 380,000 in 2010 and 550,000 in 2020. The Chinese government has calculated that if the air quality in 210 medium and large cities were to be improved from “polluted” to “good” levels 178,000 lives could be saved.

Staggering death toll -- annually.

http://factsanddetails.com/china.php?itemid=392&catid=10&subcatid=66
01:28 AM on 10/08/2010
One of the great tragedies of America is that Clinton created a culture where even formerly noble environmental groups such as Sierra Club, NRDC and EDF are now little more than toilet paper for the corporate shills in raising a $57M budget, speaking before Congress or providing food recipes during Copenhagen. When America created more than 40% of the CO2 in the atmosphere and then has the audacity to opine will China or India win, one can only wonder, what are you thinking. America has no public advocates, least of all in climate change.
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artleads
Let's have a national retreat.
11:48 PM on 10/07/2010
Let's dream big: By 2020, let's make America the country with the lowest carbon footprint in the world. The alternative is to wring our hands that we've become the second largest emitter after China. Eventually, India and other nations will surpass us. Co 2 emission is now tantamount to economic strength. We can only become second rate if we follow that model.
08:54 PM on 10/07/2010
Chinese officials admit air quality has worsened and will continue in that direction.

"China has some of the world's worst water and air pollution after rapid industrialisation over the last 30 years triggered widespread environmental damage."

http://www.physorg.com/news199429962.html
09:23 PM on 10/07/2010
One cannot deal with the problem without recognizing it. In another 10-20 years, you can bet your tushes that the environmental industry will be a good export industry also.

China has plans for this sort of things.
12:00 PM on 10/08/2010
did u get flagged for saying "tush"
LOL
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HUFFPOST SUPER USER
Joffan
Time is an illusion. Lunchtime doubly so.
08:48 PM on 10/07/2010
India should avoid the trap of unreliable power sources - their power network is already very fragile - and move quickly ahead with expanding its nuclear power program. Unfortunately their recent nuclear supplier liability legislation is not helping much, the equivalent of holding hammer manufacturers accountable for the use to which the hammer is put.

And Indians need and will pursue efficiency - not in order to reduce per-capita power but to increase it for as much of the population as possible.
09:21 PM on 10/07/2010
You don't need much power cranking code, or doing the other myriad outsourced clerical labor jobs. It is not like India plans on becoming an industrial power house. Dehli figured out a new way of leapfrogging, so energy is not a limitation at all.

(Some can dream on.)
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HUFFPOST SUPER USER
Joffan
Time is an illusion. Lunchtime doubly so.
11:57 PM on 10/07/2010
I think India will increase both the level of its industry and the affluence of its people, both of which are good things from its current position.
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HUFFPOST SUPER USER
Chip Sanders
12:13 AM on 10/08/2010
Actually, software and IT in general constitute a pretty small portion of India's GDP. Look it up..
Most of it is still agriculture/industry/consumer driven.
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HUFFPOST SUPER USER
Contact1972
BigGayInc
02:04 AM on 10/08/2010
India from what I hear is starting to build a green infrastructure.
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HUFFPOST SUPER USER
Joffan
Time is an illusion. Lunchtime doubly so.
08:48 AM on 10/08/2010
If you have some details, we could discuss it.
08:16 PM on 10/07/2010
No kidding.... Beijing has some of the worst air on earth and it is the capital of the country. As a result lung infections are on the rise.

Agreed, more democratic countries such as the USA and Europe should collaborate more with India versus China. As recent history demonstrates Chinese leaders don't negotiate. On the other hand India has elected officials and are always open for debate.
08:43 PM on 10/07/2010
Yeah, yeah. Talk is cheap. IF it were YOUR dollars at stake, would you honestly put your money on (and collaborate with) the nation that put together the most recent Olympics Games, or the most recent Commonwealth Games?

Chicoms might have their warts and all; at least their officials do not get caught taking bribes on national TV.
11:04 PM on 10/07/2010
They get caught taking bribes elsewhere, though.
03:51 PM on 10/07/2010
China has one party ruling. China has an energy policy.

America has 2 political parties. America has 22 Congressional committees with overlapping oversight on energy. America has slowing inching towards forming an energy policy.

India takes a 23 party coalition just to form a ruling plurality (not majority). India has no hope.

"Democracy" is anathema to sustainable growth for developing nations. India's GDP is only 1/4 that of China, even though the two nations started at about the same level after WW II (with India being advantaged with its English speaking population).