Recent estimates for carbon emissions have thrust China into the forefront of the climate change debate with more and more people aware of China's wide-ranging ecological problems. This book's main goal is to create a policy time line for China's future carbon emission reductions by the middle of the 21st century. In addition, Zhang wishes to document the considerable strides in increasing energy efficiency made by China in the past several decades. With about a sixth of the works referenced in this book authored or co-authored by the author, it is fair to say that Energy and Environmental Policy in China represents the culmination of Zhang's ideas on the subject over the last decade.
The core of the book attempts to answer five questions in five chapters. How effective has Chinese environmental regulation been working within a decentralized political system? Is it fair for other countries to pin so much blame for excessive carbon emissions and pollution on China? Is China's carbon intensity pledge for 2020 reasonable and credible? What is a good format and time frame for Chinese climate commitments up to 2050? How should China deal with US proposed carbon tariffs and WTO scrutiny?
Zhang feels that China's fragmented authoritarian nature has made it difficult for the central government to implement on-the-ground national environmental regulations. Chinese pollution fines remain out of line with rectification costs and do not provide enough incentive for polluters to clean up. The tax structure favours the central government over local governments, and the growth-oriented bureaucracies over the ecological and environmental conservation bureaucracies. To solve these dilemmas, Zhang advocates improving the taxation system by imposing different tax-sharing structures for different regions and increasing incentives for local government to safeguard the environment. Tax values should be based upon the value of resources extracted or used, rather than upon volume. Pollution fines remain too low but Zhang does feel recent attempts at naming and shaming polluters seem to be having some positive effect on pollution control. Thus Zhang sees the decentralized political system continue to hinder environmental regulation, but describes the system as improving.
Zhang thinks that other countries have gone too far by pinning a high level of blame for climate change on China. He points to progress in emissions control since 2005: decommissioning small, inefficient coal and oil-fired power plants, increasing energy efficiency in buildings, participation in the clean development mechanism, making tax rates favourable for smaller auto engines and bringing fuel economy standards close to international highest standards, promoting solar and especially wind power, and stepping up development of nuclear power – the later something one might now question post-Fukushima.
Zhang wants China to make some credible energy-conservation commitments starting in 2013. Since this book's publication, China's 12th Five-Year Programme was promulgated advocating sustainability stronger than in any previous Five-Year Plan by stressing a low-carbon strategy and energy efficiency. Zhang suggests that from around 2018 China could commit to adopting voluntary emission reduction targets with binding carbon intensity targets starting in 2023 leading to emissions caps around 2030.
The discussion of US-proposed carbon tariffs and WTO scrutiny begins with a look at the Waxman-Markey bill, the Liebermann-Warner Climate Security Act and how US emissions allowance requirements target major emerging countries such as China and India, while French calls for carbon taxes target the US. Zhang argues that the bills should allow for China to have more adjustment time.
He argues that a tax calculated on a comparison of US production vs. local production of the product or best available technology is better than using nationwide averages. In his description of how China can best respond to US-proposed carbon tariffs, the book advocates that China give a serious commitment to climate change issues. However, he feels the world does not take into account China's large population, dependence upon coal, nor the fact that China has become the “workshop of the world.”
In the end this book comes across as a defence of China's climate change positions for which it does provide some justification. There is, however, no refutation of accusations against China such as committing industrial espionage or that corruption has allowed some enterprises to continue to emit exhausts. The discussion is in terms of China as a whole and does not address regional variation – albeit that these issues are somewhat peripheral to the main arguments. Very little of the discussion involves China's relationship with the rest of the international community outside of the US. Those minor criticisms aside, the book does answer crucial questions relating to China's carbon policies and presents a reasoned way forward for China in international negotiations.
