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Research topic outline. Transition of Chinas environment policy and its impact on developing economy

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IRC010 Research Paper Proposal 2009470055 Topic: Transition of China's environment policy and its impact on developing economy Introduction China's environment problem is getting serious with the aggressive economic development. OECD (2006) reported that air quality in some Chinese cities remains among the worst in the world. Economic loss caused by environmental pollution in China is about USD 64 billion, which amounts to 3.05% of national GDP in 2004 according to China green national accounting study report in 2004. Addressing environment problem is urgent not only for its domestic concerns, but also for new leadership role in Asia. Fortunately, China is aware of environment problem, and also willing to take an environmental responsibility, saying that "China fully appreciates the importance and urgency of addressing climate change" by Chinese president Hu Jintao1. However, the problem is economic feasibility of the environment policy. However, the problem is economic feasibility of the environment policy. Although China has been keeping average annual GDP growth rate above 10%, but China still lags behind in terms of per capita GDP, especially western provinces in China still suffer from extreme poverty. ...read more.


(McCain, 1978) - More regulated firms have significantly lower market productivity growth than less regulated firms in the US steel, oil and paper industries. (Gray and Shadbegian, 2003) Positive relationship between environmental regulations and economic development - Abatement pressures may stimulate innovative responses that reduce the actual cost of environmental compliances below the original estimates. (Downing and White, 1986) - Positive relationship was found between environmental compliance cost and patenting of new environmental technologies using the dataset of U.S., Japan, and Germany. (Lanjouw and Mody, 1996) - Significant relationship between environmental compliance costs and the R&D expenditure in the US industry was found. (Jaffe and Palmer, 1997) Research question "Implementing strong environment policy in China would bring about the gain of productivity growth and technological process?" To assess economic impact of environmental regulations in China, I would like to exercise quantitative research on "the R&D expenditure and environmental compliance costs in China from 1990s". Even though this similar approach adopted in the US, but US and China has different industry and political structure. ...read more.


Meyer, Stephen M. 1995. The Economic Impact of Environmental Regulation, Journal of Environmental Law & Practice 3(2): 4-15. Mol, Arthur P.J. and Carter, Neil T. 2006. China's Environmental Governance in Transition, Environmental Politics 15(2): 149-70. Organization for Economic Co-operation and Development (OECD). 2006a. Environmental Performance Review of China: conclusions and recommendations. Paris: OECD. Organization for Economic Co-operation and Development (OECD). 2006b. Environmental Compliance and Enforcement in China: an assessment of current practices and ways forward. Paris: OECD. Ramzy, Austin. 2008. Is Beijing manipulating air pollution statistics? Time, Mar. 14. Stokoe, Sarah et al. 2008. China's Environmental Law Framework. Pacific Business Press. Streets, David G. et al. 2007. Air Quality during the 2008 Beijing Olympic Games, Atmospheric Environment 41: 480-92. The Economist. 2009. The Price of Cleanliness: China is torn between getting greener and getting richer, October 22. Wassermann, Rogerio. 2009. Can China be Green by 2020? BBC News, April 2. World Bank. 2007. Cost of Pollution in China: Economic Estimates of Physical Damages. Washington, DC.: World Bank. Yardley, Jim. 2007. Beijing's Olympic Quest: Turn Smoggy Sky Blue, New York Times, December 29, Asia Pacific section. 1 President Hu Jintao's speech at the opening plenary session of the United Nations Summit on Climate Change, New York, Sep.22, 2009 ?? ?? ?? ?? ...read more.

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