Beijing locks sights on green dividend

It might seem odd to speak of China’s economy as green when the country is far and away the world’s largest producer and consumer of coal, but there is no question that Beijing is combining industrial and environmental policies in a way that is more radical than most, if not all, Western governments. Moreover, given the sheer size of the Chinese economy, these policies are having — and will continue to have — huge impacts on commodity markets worldwide. When China decides to act, it acts big. As a state-directed economy, the allocation of capital is often inefficient, creating bad debts, which are unlikely ever to be repaid, but to Beijing the ends appear to justify the means, and the outcomes are impressive. Take for example the expansion of its refinery capacity, which grew from 5.4 million b/d in 2000 to 14.1 million b/d in 2016; China’s massive coal plant capacity, where utilization rates are now below 50%; its production of solar panels; its deployment of wind and solar; and now its output of electric vehicles. Its latest industrial endeavor has been the conversion of coal-fired heating in northern provinces to gas-fired heating. This program, known as the “2+26 cities… continue reading

Continue reading Beijing locks sights on green dividend. This article appeared first on CTRM Center.

Source: CTRM Center

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