China's Economic Growth and the Environment Fa 08
China's Economic Growth
Economic Growth Overview (ryan)
History and Facts (ryan)
Environmental Impact
Health Effects(jenn)
Environmental Impact (maddie)
Kuznets Curve (justin)
Background
The environmental Kuznets curve (shown above) represents that concept that environmental degradation will decline once a country's per capita income reaches a certain level. The curve represents the hypothesized pattern that developing countries will follow as they grow. There is much controversy surrounding the validity and practicality of the environmental Kuznets curve.
In the beginning stages of a country's growth, industrialization occurs. During this, the curve shows that environmental damage grows rapidly. At this point people focus more on income, jobs, and improving the standard of living with pollution taking a back seat (Dasgupta 2002). The country is too poor to be able to fund pollution abatement and environmental regulation is nearly nonexistent. As per capita income rises, however, it reaches a turning point at which people are now able to address the concerns of the environment. Subsequently, new technologies are implemented and legislation is passed which results in environmental degradation falling. Initial estimates of the per capita level of income that represents the turning point range from $5000 to $8000 (Dasgupta 2002). China's per capita level of income in 1998 was $3051, well below the level where improvements in the environment should start to be seen (Dasgupta 2002). This figure indicates that the next few decades should see continuing environmental damage in China.
Controversy
The environmental Kuznets curve applies mainly to certain water and air pollutants. With World Bank estimates that mortality and sickness caused from urban air pollution represent a loss of 2-3% of gross domestic product (GDP) in China, the environmental Kuznets curve has received increased attention (Dasgupta 2002).
Much of this attention, however, has been on the alternative paths that might be followed other than the tradition curve. As shown in the above figure, the emergence of new pollutants as a country develops shows that not all forms of pollution will diminish once a country reaches a certain point (Dasgupta 2002). In fact, these pollutants represented by the New Toxics curve will continue increasing as there is no means to eliminate them. The "Race to the Bottom" curve represents the idea that the curve will rise to a horizontal line at maximum pollution levels as globalization promotes a race to bottom in terms of environmental standards (Dasgupta 2002). The idea behind this is that business will flock to these developing countries who are unable to enforce environmental regulation as a way to cut costs by not complying with stricter regulation in other countries. The final alternative scenario is one where the turning point is lower and is reached with less pollution than the traditional curve. The inability to gather good data in developing countries makes a conclusive argument for or against the environmental Kuznets curve difficult to reach.
Current Regulation (justin)
Suggestions for Improvement (all)
References
- Dasgupta, S., et. al. "Confronting the Environmental Kuznets Curve." The Journal of Economic Perspectives, Vol. 16, No. 1 (2002), pp. 147-168.
- Jahiel, A. "The Organization of Environmental Protection in China." The China Quarterly, No. 156 (Dec. 1998), pp. 757-787.
- Muldavin, J. "The Paradoxes of Environmental Policy and Resource Management in Reform-Era China." Economic Geography, Vol. 76, No. 3 (July 2000), pp. 244-271.