Environmental problems in China : estimates of economic costs

The effects of pollution and environmental degradation are everywhere. Chronic lung diseases aggravated by air pollution accounted for about 25% of all deaths in the late 1980s, and drinking water quality is within state standards in only 6 of China"s 27 largest cities. Contamination of crops by polluted water endangers health and reduces opportunities for exports. And the loss of arable land to urban encroachment and soil erosion means that, by the year 2,000, Bangladesh and Egypt will be the only two populous nations with less arable land per capita than China. These problems cost China at least 10% and perhaps 15% of its GDP annually. Yet the country has been spending far less on environmental protection and management than even the 1.5% of GDP recommended by the country"s leading environmental experts. If China were to consume resources at the level of South Korea or Taiwan and imported crude oil and grain at rates comparable to those of other rapidly growing East Asian economies, it would need more energy and more cereals than currently exist on the world market. Securing the largest possible share of its energy and food needs from domestic sources will be important not only for China"s economic progress, but for global stability as well. Such a strategy can succeed, however, only if China uses its resources efficiently and makes protection of the environment and a gradual shift to a more sustainable economy matters of high priority. Includes references. (Author abstract, modified)