Why The Games are Good for the Environment

"China has an even dumber energy policy than we do," said the U.S. Ambassador to both China and Saudi Arabia, Chas Freeman, at a recent talk in D.C. But the Olympics are changing that for the better. The Games will have a lasting impact on how China consumes energy.

Don't be fooled by The Great Makeover of Beijing, though. Taking a million cars off the road and closing down factories are steps in the right direction, since heavy industry in China emits more carbon than the transportation sector.

But as Beijing is adding 1,000 new cars a month to the road, and as China is building the equivalent of a new city for 1.3 million people a month, we can hardly expect these temporary measures to have a lasting impact on China's carbon footprint.

Cosmetics aside, China is reforming its energy policies in ways that will have broad and lasting consequences beyond the Games. Take energy subsidies, for example. Like many Asian countries, China subsidizes its energy sector, keeping prices on fuel artificially low. Aside from distorting the world's oil markets, this policy has also caused massive energy shortages in China and has encouraged highly wasteful energy consumption as China grows its economy.

We've been bellyaching to China about their energy subsidies for years. But in the run-up to the Olympics -- and amidst all the media scrutiny -- the authorities recently jacked up prices 16-18% on gasoline and diesel. They're finally cuting back energy subsidies.

That's a very good start. It's a concession we've been seeking for many years. But it's not nearly enough. Energy intensity is the key. How much energy it takes China to produce one unit of GDP. China has been colossally wasteful in this area, especially in the past few years.

We can be sure that China will keep building and modernizing to keep apace with its massive population growth -- they're going to keep consuming massive amounts of energy. So getting China to abide by a cap and trade system will be next to impossible. However, we can demand better fuel efficiency. Curbing subsidies is important because rational pricing on energy induces China to be more efficient in growing GDP.

The Chinese authorities have made energy efficiency a top priority. And U.S. and Chinese officials recently agreed to work together to help lower China's energy intensity (at the Strategic Economic Dialog in Annapolis).

Helping the Chinese become more fuel efficient is good for the planet -- and it's a giant new market for American goods and services. which helps create jobs here at home.

We can thank the Olympics for focusing the world's attention on China and the environment. Time will tell how lasting -- and positive -- the outcome will be.

Read more HuffPost coverage of the 2008 Beijing Olympic Games

Comments

[OldKnute]

Well,,, I think the Chinese Olympics are a good thing.

1,400 million people just got a lesson in pollution and the effects of an OIL dependent society. The drawbacks,, Fossil Fueled,, centralized energy,, A TOP DOWN,, energy system.

What has this cost them?

40 BILLION DOLLARS.

The clean air they enjoy during the brief Olympic stay, will TEACH THEM.

The efforts to clean up the Fossil Fuel contaminates with TEACH THEM.

Their growing dependency on world oil supplies,, with TEACH THEM.

And if history is any guide,,, their wisdom will serve them well and they will CHANGE to renewables,, faster than any country on earth.

Where America may argue for the next 200 years about home based wind and solar,,, Decentralized Renewables,, China will simply mandate it.

Because it is GOOD!

The thousand-hands concept,, of distributed work,,, IS CHINESE.

A Chinese concept of,,,, 10 thousand years ago.

They already know Why.
They already understand,,, HOW!

You want to see change??? REAL CHANGE???

WATCH!

Watch China!

All the best

Knute Neo-LIB

[KillTheMessenger]

The cost of the Olympics is many times returned economically by China's infrastructure advances. It is multiplied by the thousands by the pride the Chinese are gaining from the games. 40 billion dollars is a small price to pay. They would have paid ten times as much.

The Chinese are much less dependent on oil than they are dependent on coal. The pollution in China is not from cars but from unfiltered coal fired power plants and factories which have close to no environmental controls.

[OldKnute]

Yes Killthemessenger, What you say is all true.

The level of environmental awareness is growing in China. Not just among the people but at THE TOP TOO.

They already are diversifying into Wind and Solar.

What I was saying is that these few month will further help them,,, SEE.

The advent of, channel irrigation, ROW farming and Iron tools,, the HOE for one are ALL Chinese. A revolution in applied sciences to agriculture that meant a 5-fold increase in productivity.

5 TIMES,,, 500%

4,500 years ago. We were still digging in the ground with sticks.

It is this,,, Genius,,, that I am counting on.

Born into the people!!!

The concepts of distributed power,,, power FROM the people,,, the thousand hands concept,,,, is not foreign to them. They invented IT!

As you say,,, they are now as dependent on centralized power as we are. The Every Home, every rooftop,, Solar,, Wind,, renewable energy is coming to China.

Here is just one example.

http://www.worldwatch.org/node/41

You SEE?

All the best

Knute Neo-LIB

[JaseAllen]

1. Let's worry less about China's energy policy and do something to fix our own.

2. If we /really/ want to do something to impact China's energy consumption, let's start by producing our products in the US instead of China.

[KillTheMessenger]

Hmmm.. we should take a look at the really important number: energy use per capita:

http://newsburglar.com/2008/07/world-energy-consumption-per-capita/

Americans: 275kWh/d
Chinese: 41kWh/d

Similar numbers here:

http://en.wikipedia.org/wiki/List_of_countries_by_energy_consumption_per_capita

And if we add all the energy used by the Chinese to produce goods for the markets outside of China it gets even worse. For us. Not for the Chinese.

There is a lot of blame going around. But this one just does not want to stick.

And what is so massive about the population growth in China?

China is 156 on the list with 0.58%. The US is 131 with 0.97:

http://en.wikipedia.org/wiki/List_of_countries_by_population_growth_rate