WHAT MATTERS WEBLOG

•  has become the world’s number one emitter of carbon dioxide after surpassing the United States.
• 16 of the 20 most polluted cities in the world can be found in that country
• is the fastest-growing economy in the world  (growing at 9% per year on average for the past 10 years) and accounts for the largest share of world GDP growth
• it has about 20% of the world’s population, but only 9 % of the world’s arable land

Name that country: China

China’s rise is unprecedented in history. By becoming a new industrial super power, China has lifted more people out of poverty than any other country in history. This is an extraordinary achievement given the difficulty of maintaining order and stability in a country of 1.3 billion people.

As mind-boggling as the pace of China’s industrialization are the challenges the country is facing these days.

It neither has the resources nor the land to feed its economy and population. Gradually China is losing precious farmland due to desertification.

Every month, China is adding around 1.3 million new cars to its streets. Due to direct air pollution, about 600,000 Chinese die every year. A stunning 70% of Chinese rivers are heavily polluted. The health effects are disastrous. Food production is also being affected.

GDP does not account for the damages done to the environment. Subtracting the cost of pollution from growth rates would reduce the sustainable growth of its economy substantially. The country’s economy is resource-inefficient and the path it is on is unsustainable.

However, the Chinese leadership is well  aware of the problems which pose a huge risk to stability and long-term prosperity.

Even from a pure economic perspective, it pays off to increase energy efficiency in  a country that relies so heavily on imported fuels.

Change won’t come overnight, but even today, China is producing more solar panels, electric cars and carbon-free nuclear power stations than any other country in the world.

Number one priority has the reduction of air pollution in big cities which is having a hazardous effect on people’s health. In urban areas, it is primarily private cars that cause the bulk of air pollution. With China’s car fleet growing by more than a million units a month, it seems to be illusory to limit the tail pipe emissions in the medium term. Especially since China has been subsidizing gasoline for many years because the government feared the anger of those who might have spent their last penny on a car - an important symbol of achievement - and can’t afford to drive it due to high gas prices.

The downside is that next to becoming increasingly expensive for the government, the subsidies benefit those the most whose cars are the least efficient.

Electric cars could be a solution to both of these problems. First, they have zero tailpipe emissions and second, they don’t increase the amount of gasoline consumed.

The Chinese battery manufacturer BYD (Build Your Dreams) has now come up with a range-extended electric car which has a pure electric range of 100 kilometers (62 miles). And BYD is aiming high. By 2015, the company wants to be the number one car producer in China; ten years later, they want to be the world’s number one:

Reds Go Green - China

http://www.youtube.com/watch?v=9TtyE7GJGmA

BYD’s goal of becoming the world’s biggest car manufacturer by 2025 appears much more realistic knowing that Warren Buffet owns a 10% stake in the company and is thinking about increasing his share.

Although GM’s Chevrolet Volt will be technologically more advanced, BYD is a company with barely any experience in the car market and yet, BYD’s electric sedan will go into production one year earlier than the Volt. A reminder not to underestimate the innovative potential of the Chinese when it comes to developing cleaner and more efficient energy technologies.

This entry was posted on Monday, November 16th, 2009 at 11:22 AM and is filed under Economy, Electric Cars & Auto Industry, Environment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.