High price of low-carbon economy

• Source: Global Times
• [02:05 December 08 2009]
• Comments

A man walks past a earth ball prior to the 15th United Nations Climate Change Conference (COP15) at Bella Center in Copenhagen, capital of Demark, Dec. 6, 2009. The conference will be held from Dec. 7 to 18. (Xinhua/Xu Suhui)

Even before the ordinary Chinese grasp the difference between coal and carbon, their lives are on the verge of being transformed by a series of low-carbon initiatives.

Young urbanites are turning to the seemingly trendy low-carbon lifestyle: switching to energy-saving light bulbs, promoting no-driving day, even buying carbon credit for flights and such.

But for the country as a whole to achieve a low-carbon economy, it could mean ordinary people paying more for electricity, water, gas or simply every purchase.

Of necessity, a low-carbon economy would be the basis of China's economic growth. Yet it comes with a high price tag.

China has made the commitment of cutting emission over the next 10 years.

According to the estimates of some experts, this entails an annual investment of nearly $78 billion. If shared by every family, the extra expenditure comes to about 1,100 yuan ($161.05) every year.

E v e r y b o d y longs for fresh air, clean water and healthy surroundings. But, who is going to pay for that?

For those who are still working hard for the basic necessities of life, sharing the cost of a greener environment can be taxing.

For those who are already victimized by environmental pollution, additional expen-diture for saving the environment is hard to bear.

Behind all the lofty goals and loaded phrases of climate change negotiations, in everyday terms, the Chinese want to know whether companies will make them pay the cost of saving energy or whether government would come up with new levies.

They have reason to worry. The recent hike in the charges of utilities, such as natural gas, water and electricity, have led to widespread public grievance for the increases were imposed without proper public hearing.

The practice of monopoly State-owned enterprises raising prices at will does not seem to bode well for a low-carbon economy, since the companies have enough incentives to pass on the cost to end users.

The government has a responsibility to strengthen regulation of utility charges and make the pricing mechanism more transparent.

In the age of the low-carbon economy, the Chinese government needs to strike a new balance between public welfare and business competitiveness.

How far the initiatives toward a low-carbon economy succeed depends on whether they truly benefit ordinary people and is accepted by them.

The majority cannot sacrifice their life to build a greener world for the few.