Sustainable Development: An Agenda in Search of a Problem

by Jerry Taylor
Director, Natural Resource Stories
Cato Institute

Outline and Remark Notes

I. INTRODUCTION

II. WHAT IS SUSTAINABLE DEVELOPMENT?

1. INTELLECTUAL ARCHITECTURE

2. TECHNICAL DEFINITION

3. "HARD" DEFINITION

4. "SOFT" DEFINITIONN

III. HOW (ENVIRONMENTALLY) SUSTAINABLE IS THE PRESENT?

1. RESOURCE AVAILABILITY

2. POLLUTION SINKS

IV. CHINESE POLICIES FOR SUSTAINABLE DEVELOPMENT

1. LEGISLATIVE INITIATIVES

2. WELL-INTENTIONED BUT MISGUIDED

A. AMBIVALENCE ABOUT ECONOMIC GROWTH

B. BIAS TOWARD MORE AGGRESSIVE CENTRALIZED PLANNING

C. ACCEPTS MANY SPURIOUS GREEN ECONOMIC AND SCIENTIFIC OBSESSIONS

V. RECOMMENDATIONS FOR CHINA

1. END COOPERATION WITH INTERNATIONAL SUSTAINABLE DEVELOPMENT EFFORTS

2. DISMANTLE DOMESTIC SUSTAINABLE DEVELOPMENT AGENCIES

3. FURTHER FREE THE ECONOMY IN ORDER TO PROMOTE ECONOMIC GROWTH

4. ELIMINATE INDUSTRIAL, AGRICULTURAL, AND CONSUMER SUBSIDIES

5. ESTABLISH LEGALLY ENFORCEABLE PROPERTY RIGHTS FOR ENVIRONMENTAL PROPERTY

6. REPLACE COMMAND & CONTROL REGULATIONS WITH MARKET-ORIENTED POLICIES

VI. CONCLUSION

I. INTRODUCTION

WHEN MY AMERICANS FRIENDS FIRST ARRIVED IN SHANGHAI THIS WEEK, NEARLY THE FIRST THINGS OUT OF THEIR MOUTHS WERE NEGATIVE COMMENTS ABOUT THE URBAN POLLUTION OF CHINA. "CAN YOU SMELL THE POLLUTION?" THEY WOULD ASK ME INCREDULOUSLY. "CAN YOU SEE THE FILTH?" THEY WOULD INQUIRE. WELL, WHAT I SMELLED HERE IN SHANGHAI WAS NOT POLLUTION, BUT PROGRESS. AND THE KIND OF PROGRESS I SEE IN SHANGHAI IS NOT THE KIND THAT SETS THE ENVIRONMENT BACK, BUT THE KIND ABSOLUTELY NECESSARY FOR ENVIRONMENTAL PROTECTION AND HUMAN HEALTH IN THE LONG RUN. MY TALK THIS MORNING WILL CONCENTRATE WHY THIS IS SO AND WHY THE CURRENT FAD GOING BY THE NAME "SUSTAINABLE DEVELOPMENT" IS INIMICAL TO CHINA'S ENVIRONMENTAL HEALTH. THIS IS SO BECAUSE

1 - IF ENVIRONMENTAL GROWTH WERE TO BE SLOWED OR STOPPED IT WOULD BE IMPOSSIBLE TO IMPROVE THE ENVIRONMENTAL CONDITIONS OF CHINA.

2 - THE BIAS FOR COMMAND & CONTROL REGULATIONS, INSTEAD OF VARIOUS MARKET-BASED MECHANISMS, TO PREVENT EXCESSIVE POLLUTION WOULD ONLY MAKE ENVIRONMENTAL PROTECTION EVEN MORE EXPENSIVE, SO CHINA WOULD BE ABLE TO "PURCHASE" LESS OF IT.

3 - STRICT PURSUIT OF "SUSTAINABLE DEVELOPMENT" AS MANY ENVIRONMENTALISTS MEAN IT, WOULD ONLY REDUCE THE WELFARE OF FUTURE GENERATIONS.

AS TWO DISTINGUISHED AUTHORITIES IN THIS AREA, PARTHA DASGUPTA AND KARL-GORAN MALER, POINT OUT, "MOST WRITINGS ON SUSTAINABLE DEVELOPMENT START FROM SCRATCH AND SOME PROCEED TO GET THINGS HOPELESSLY WRONG. IT WOULD BE DIFFICULT TO FIND ANOTHER FIELD OF RESEARCH ENDEAVOR IN THE SOCIAL SCIENCES THAT DISPLAYS SUCH INTELLECTUAL REGRESS." (PARTHA DASGUPTA AND KARL-GORAN MALER, "POVERTY, INSTITUTIONS, AND THE ENVIRONMENTAL-RESOURCE BASE," WORLD BANK PAPER NO. 9 (WASHINGTON, D.C., 1994)

II. WHAT IS SUSTAINABLE DEVELOPMENT?

1. INTELLECTUAL ARCHITECTURE.

YE RUQIU, AN ADVISOR TO THE CHINESE GOVERNMENT, WRITES THAT "THE HIGH ECONOMIC GROWTH AND WEALTH OF WESTERN NATIONS WERE BUILT UPON THEIR LOW-PRICE USE OF NATURAL RESOURCES, TREMENDOUS POLLUTION EMISSIONS AND EXCESSIVE CONSUMPTION, WHICH WAS IN REALITY AN UNSUSTAINABLE PRODUCTION AND CONSUMPTION PATTERN." CHINA, HE SAYS, MUST NOT TAKE THE WESTERN PATH. "ENVIRONMENTAL PROTECTION...MUST PROCEED AT THE SAME PACE AS THAT OF ECONOMIC GROWTH." (YE RUQIU, "SUSTAINABLE DEVELOPMENT IN CHINA AND INTERNATIONAL TRADE," CHINA COUNCIL FOR INTERNATIONAL COOPERATION ON ENVIRONMENT AND DEVELOPMENT, HTTP://IISD1.CA/TRADE/CCICED/AGENDA21.HTM, UNDATED, PG. 1, 5)

THE CHINESE COUNCIL FOR INTERNATIONAL COOPERATION ON ENVIRONMENT AND DEVELOPMENT (THE CCICED, AN ADVISORY ORGANIZATION COMPOSED OF MORE THAN 40 SPECIALISTS AND PUBLIC FIGURES FROM CHINA AND ELSEWHERE), CONCURS, ASSERTING THAT "CHINA CAN NO LONGER AFFORD RAPID ECONOMIC GROWTH AT THE EXPENSE OF ITS ENVIRONMENT AND NATURAL RESOURCES" BECAUSE GROWTH IS OUTPACING ENVIRONMENTAL IMPROVEMENT. ("REPORT OF THE WORKING GROUP ON TRADE AND ENVIRONMENT OF CCICED," HTTP://IISD1.CA/TRADE/CCICED/WGREPORT96.HTM, 1996, P. 10)

WHY THIS IS NECESSARILY SO IS NOT CLEAR. CHINA'S LIFE EXPECTANCY HAS RISEN DRAMATICALLY AND IS NOW VIRTUALLY EQUIVALENT TO INTERNATIONAL NORMS, A TREND THAT IS HARD TO ASCRIBE AS "UNSUSTAINABLE." ALL PUBLIC HEALTH INDICATORS ARE IMPROVING DRAMATICALLY, WHICH ALSO CALLS INTO QUESTION THE HAND-WRINGING OF THOSE WHO FEEL CHINA'S ECONOMIC GROWTH IS A THREAT TO MANKIND. AND NATURAL RESOURCES, NO MATTER HOW THEY ARE MEASURED, ARE BECOMING MORE ABUNDANT, NOT MORE SCARCE, WITH TIME.

2. TECHNICAL DEFINITION.

WHILE SUSTAINABILITY CAN CERTAINLY BE A IMPORTANT CONSIDERATION FOR CERTAIN ECONOMIC OR SOCIAL ARRANGEMENTS, IT DOES NOT NECESSARILY FOLLOW THAT IT SHOULD BE ELEVATED TO THE STATUS OF SOME OVERRIDING CRITERION FOR PUBLIC POLICY. AFTER ALL, I AM SURE THAT ALL OF YOU CAN EASILY THINK OF INNUMERABLE HUMAN ACTIVITIES THAT ARE HIGHLY DESIREABLE -- EVEN NECESSARY -- BUT UNFORTUNATELY, NOT INDEFINITELY SUSTAINABLE.

AS AN ECONOMIST MIGHT PUT IT, WE MUST MAKE A DISTINCTION BETWEEN SUSTAINABILITY AS A PURELY TECHNICAL CONCEPT, AND OPTIMALITY, WHICH IS A NORMATIVE CONCEPT. MANY ECONOMIC ACTIVITIES THAT ARE UNSUSTAINABLE MAY BE PERFECTLY OPTIMAL, AND MANY THAT ARE SUSTAINABLE MAY NOT BE DESIREABLE, LET ALONE OPTIMAL.

3. HARD DEFINITION.

SOME HOLD THAT SUSTAINABLE DEVELOPMENT MANDATES ECONOMIC ARRANGEMENTS THAT PRESERVE INTACT THE ENVIRONMENT AS WE FIND IT TODAY IN ALL ITS FORMS IN ORDER TO PRESERVE THE MAXIMUM NUMBER OF OPTIONS FOR FUTURE GENERATIONS. BUT SUCH A DICTUM IS MORALLY DUBIOUS, COUNTERPRODUCTIVE, AND LOGICALLY EMPTY.

IT IS MORALLY DUBIOUS BECAUSE IT CALLS FOR SOCIETY (AND PARTICULARLY THE POOREST IN SOCIETY) TO BARE ANY BURDEN AND TO PAY ANY PRICE -- NO MATTER HOW ASTRONOMICAL -- IN ORDER TO PRESERVE AMENITIES FOR OUR PROGENY WHO, UNLESS STATIST PLANNING REEMERGES AND GETS IN THE WAY, WILL BE FAR WEALTHIER AND BETTER PROVIDED FOR THAN WE ARE TODAY.

IT IS COUNTERPRODUCTIVE FOR TWO REASONS. FIRST, IF THE COST OF SUCH POLICIES CANNOT ENTER INTO THE EQUATION, THEN WE WILL OFTEN FIND OURSELVES SACRIFICING TREMENDOUS RESOURCES TO CONSERVE MINOR ENVIROMENTAL AMENITIES WHEN THOSE RESOURCES MIGHT OTHERWISE HAVE BEEN USED TO AMELIORATE FAR MORE URGENT ENVIRONMENTAL CONCERNS, SUCH AS IMPROVING ACCESS TO CLEAN DRINKING WATER OR SANITATION IN THE DEVELOPING WORLD. SECOND, BECAUSE THE USE OF ENVIRONMENTAL RESOURCES TODAY GENERALLY PRODUCES GOODS, SERVICES, AND TECHNOLOGIES THAT ARE MORE VALUABLE -- BOTH TO US AND TO OUR CHILDREN -- THAN THE RAW STUFF THAT WENT INTO MAKING THEM, WE WILL BE SHORTCHANGING BOTH OURSELVES AND FUTURE GENERATIONS.

FINALLY, IT'S LOGIC IS CIRCULAR AND THUS IRRATIONAL. UNDER A HARD DEFINITION OF SUSTAINABLE DEVELOPMENT, NO GENERATION IS EVER PERMITTED TO DRAW-DOWN NATURAL STOCKS OF RESOURCES, NO MATTER HOW GREAT THE NEED, BECAUSE OTHER GENERATIONS WILL ALWAYS FOLLOW. THUS, SUSTAINABLE DEVELOPMENT CANNOT BE THOUGHT OF A MAXIMIZING THE OPTIONS FOR FUTURE GENERATIONS BECAUSE ALL GENERATIONS ARE DENIED THE RIGHT TO EXCERCISE THOSE OPTIONS.

4. SOFT DEFINITION.

THE IMPRACTICAL NATURE OF THE HARD DEFINITION OF SUSTAINABLE DEVELOPMENT HAS LED MOST ENVIRONMENTALISTS TO EMBRACE A SOFTER DEFINITION, KNOWN IN THE ENVIRONMENTAL LITERATURE AS "WEAK" SUSTAINABILITY. THIS ALLOWS FOR SOME NATURAL RESOURCES TO BE RUN DOWN AS LONG AS ADEQUATE COMPENSATION IS PROVIDED BY INCREASES IN OTHER RESOURCES. BUT WHAT CONSTITUTES ADEQUATE COMPENSATION? THE ANSWER, ACCORDING TO PROF. DAVID PEARCE, A GLOBALLY RENOWNED CHAMPION OF SUSTAINABLE DEVELOPMENT, IS THAT SUSTAINABILIY "IMPLIES SOMETHING ABOUT MAINTAINING THE LEVEL OF HUMAN WELL-BEING SO THAT IT MIGHT IMPROVE BUT AT LEAST NEVER DECLINES (OR, NOT MORE THAN TEMPORARILY, ANYWAY). INTERPRITED THIS WAY, SUSTAINABLE DEVELOPMENT BECOMES EQUIVALENT TO SOME REQUIREMENT THAT WELL-BEING DOES NOT DECLINE THROUGH TIME." (DAVID PEARCE, "ECONOMIC VALUES AND THE NATURAL WORLD," (LONDON: EARTHSCAN PRESS, 1993), P. 48, CITED IN WILFRED BECKERMAN, "THROUGH GREEN COLORED GLASSES: ENVIRONMENTALISM RECONSIDERED" (WASHINGTON D.C.: CATO INSTITUTE, 1996), P. 147)

THE SOFT DEFINITION, THEN, LEADS US BACK TO WHERE WE BEGAN BEFORE THE ENVIRONMENTALISTS EVER CAME ALONG WITH THEIR P.R. CAMPAIGN. FOR IT APPEARS NOW THAT WHAT SOCIETY SHOULD AIM FOR IS NOT "SUSTAINABILITY" AT ALL, BUT THE MAXIMIZATION OF WELFARE. IN THIS CONTEXT, THEN, ANY POLICY THAT IMPROVES THE LOT OF MANKIND IS "SUSTAINABLE DEVELOPMENT." ANY THAT DOES NOT IS "UNSUSTAINABLE DEVELOPMENT." WHAT, THEN, IMPROVES THE LOT OF MANKIND? THIS WHOLE CONFERENCE HAS BEEN DEDICATED TO ANSWERING THAT QUESTION, AND THAT ANSWER IS ECONOMIC, INTELLECTUAL, AND SOCIAL FREEDOM.

III. HOW (ENVIRONMENTALLY) SUSTAINABLE IS THE PRESENT?

RESOURCE DISCUSSION....

CHINA IS PRESENTLY EXPERIENCING ENVIRONMENTAL COMPLICATIONS STEMMING FROM TWO FACTORS. FIRST, AS AN UNDERDEVELOPED SOCIETY, IT'S DATED MACHINERY, PRODUCTION TECHNIQUES, AND INDUSTRIAL STRUCTURES ARE HIGHLY POLLUTION-INTENSIVE. MEANWHILE, ECONOMIC GROWTH BRINGS WITH IT NEWER FORMS OF POLLUTION -- PARTICULARLY THOSE ASSOCIATED WITH THE AUTOMOBILE, URBAN CONGESTION, WASTE DISPOSAL, AND SANITATION -- BEFORE CHINA HAS ADEQUATELY REDUCED ITS EXPOSURE TO MORE TRADITIONAL POLLUTANTS. THUS, CHINA IS EXPERIENCING THE WORST OF BOTH THE DEVELOPED AND DEVELOPING WORLDS. (BECKERMAN, P. 31)

STILL, ACCORDING TO THE 1994 REPORT ON THE STATE OF ENVIRONMENT IN CHINA, AIR QUALITY IS NOT WORSTENING DESPITE CONTINUING URBANIZATION, WATER QUALITY IS SLOWLY IMPROVING, AND DISCHARGES OF INDUSTRIAL AND TOXIC WASTES ARE SLOWING. (CITED IN YE RUQIU)

THE PRESENT STATE OF AFFAIRS IN CHINA IS BY NO MEANS UNPRECIDENTED OR UNIQUELY THREATENING. WHEN CHATEAUBRIAND WAS TAKING UP HIS POST AT THE FRENCH EMBASSY IN LONDON IN 1822, HE WROTE OF "AN IMMENSE SKULLCAP OF SMOKE WHICH COVERS THE CITY OF LONDON," WHICH HE DESCRIBED TRAVELLING THROUGH AS "PLUNGING INTO A GULF OF BLACK MIST, AS IF INTO THE MOUTHS OF HELL." THE CONDITIONS OF LONDON AT THAT TIME WERE PERHAPS MOST COMPLETELY DESCRIBED IN ALL THEIR HORRIFYING DETAIL IN "SANITARY RAMBLINGS," BY DR. HECTOR GAVIN. ALMOST ANY PAGE OF HIS BOOK CONTAINS DESCRIPTIONS LIKE THE FOLLOWING: "PLEASANT ROW...IMMEDIATELY FACING PLEASANT ROW IS A DITCH, FILLED WITH SLIMY MUD AND PUTRIFYING FILTH, WHICH EXTENDS 100 FEET. THE SPACE BETWEEN PLEASANT ROW AND THE CENTRAL SQUARE IS BEYOND DESCRIPTION, FILTHY; DUNG-HEAPS AND PUTRIFYING GARBAGE, REFUSE, AND MANURE, FILL UP THE HORRID PLACE, WHICH IS COVERED WITH A SLIMY FETID MUD. THE EAST END HAS LIKEWISE ITS HORRID, FILTHY, FETID GUTTER REEKING WITH PESTILENTIAL EFFLUVIA; THE SOUTHERN ALLEY IS LIKEWISE ABOMINABLY FILTHY...I ENTERED ONE OF THESE HOUSES ON THE SOUTHERN SIDE, AND FOUND THAT EVERY INDIVIDUAL IN A FAMILY OF SEVEN HAD BEEN ATTACKED WITH FEVER...THE PRIVY OF THIS HOUSE IS CLOSE TO IT, AND IS FULL AND OVERFLOWING, COVERING THE YARD WITH ITS PUTRESCENT FILTH." (CITED IN BECKERMAN, PP. 42-3)

THE ENVIRONMENTAL PLIGHT OF LONDON MIGHT NOT HAVE BEEN INDEFINITELY "SUSTAINABLE," BUT FUTURE GENERATIONS WERE HELPED, NOT HARMED, BY INDUSTRIALIZATION. EVENTUALLY, NEW TECHNOLOGIES ARRIVED TO ALLEVIATE THE WORST OF THIS NEW POLLUTION; INCOMES ROSE SO THAT PEOPLE WERE ABLE TO AFFORD MORE ENVIRONMENTAL AMENITIES, BETTER HEALTH CARE, MODERN SANITATION PRACTICES, AN IMPROVED DIET, AND MORE ADVANCED ECONOMIC ARRANGEMENTS. ECONOMIC GROWTH SPAWNED NEW MANUFACTURING TECHNOLOGIES THAT WERE MORE EFFICIENT AND, HENCE, LESS RESOURCE INTENSIVE. THIS PHASE OF INDUSTRIALIZATION MIGHT BE UNSAVORY FROM A MODERN PERSPECTIVE, BUT IT WAS A NECESSARY AND ULTIMATELY BENEFICIAL PHASE OF HUMAN DEVELOPMENT THAT, DEMONSTRABLY, HAD NO LONG-TERM ENVIRONMENTAL CONSEQUENCES DESPITE THE "UNSUSTAINABLE" CONDITIONS OF THAT TIME.

HIGHER INCOME LEVELS ARE CLEARLY ASSOCIATED WITH IMPROVED ENVIRONMENTS, BUT THE TRANSITION PERIOD MAY BE A LONG AND PAINFUL ONE, DURING WHICH THE ENVIRONMENT CAN SERIOUSLY DETERIORATE. HOW LONG AND PAINFUL THE TRANSITION PERIOD IS DEPENDS LARGELY ON POLICIES PURSUED BY CHINA.

IV. CHINESE POLICIES FOR SUSTAINABLE DEVELOPMENT

1. LEGISLATIVE INITIATIVES.

WESTERN IDEAS ABOUT SUSTAINABLE DEVELOPMENT CAN BE FOUND IN THE CONSTITUTION OF THE PEOPLE'S REPUBLIC OF CHINA, WHICH STIPULATES THAT "THE STATE ENSURES THE RATIONAL USE OF NATIONAL RESOURCES AND PROTECTS RARE ANIMALS AND PLANTS. THE APPROPRIATION OR DAMAGE OF NATURAL RESOURCES BY ANY ORGANIZATION OR INDIVIDUAL BY WHATEVER MEANS IS PROHIBITED." OF COURSE, TAKEN LITERALLY, THIS PART OF THE CONSTITUTION WOULD DRIVE CHINA BACK TO THE CAVES AND HAS THUS BEEN LARGELY IGNORED.

AFTER THE RIO CONFERENCE, CHINA FORMULATED "10-POINT TASKS FOR THE ENVIRONMENT AND DEVELOPMENT" WHICH INSTITUTED THE FOUNDATIONS OF WESTERN-STYLE SUSTAINABLE DEVELOPMENT. (CITED IN YE RUQIU) SHORTLY THEREAFTER, CHINA ADOPTED "THE WHITE PAPER ON POPULATION, ENVIRONMENT, AND DEVELOPMENT IN CHINA IN THE 21ST CENTURY," OTHERWISE KNOWN AS "CHINA'S AGENDA 21." ("AGENDA 21 FOR ENVIRONMENTAL PROTECTION IN CHINA," NATIONAL ENVIRONMENTAL PROTECTION AGENCY (BEIJING: CHINA ENVIRONMENTAL SCIENCE PRESS, MAY 1995) THIS 20-CHAPTER DOCUMENT LAID OUT A DETAILED AND AMBITIOUS SERIES OF INITIATIVES IN 78 PROGRAM AREAS TO PROMOTE SUSTAINABLE DEVELOPMENT. THE TENOR OF THE PAPER IS PERHAPS BEST CONVEYED BY THE REPORT'S STATEMENT THAT "CHANGING THE TRADITIONAL PATTERNS OF DEVELOPMENT IS ESSENTIAL FOR ACHIEVING SUSTAINABILITY." ("FORMULATION OF SUSTAINABLE DEVELOPMENT INDICATORS FOR CHINA," HTTP://WWW.HONGKONG-WINDOW.COM/CA21/1-3.HTML, UNDATED) THE DOCUMENT EVENTUALLY FOUND ITS WAY INTO THE 9TH 5-YEAR PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT ADOPTED BY 8TH NATIONAL PEOPLE'S CONGRESS IN MARCH, 1996.

2A. AMIVALENCE ABOUT ECONOMIC GROWTH

CHINA'S POLICY FOR SUSTAINABLE DEVELOPMENT MIGHT BE WELL INTENIONED, BUT IT IS INCREDIBLY WRONG-HEADED AND, IF ACTUALLY CARRIED OUT, WOULD IMPOVERSH CHINA BOTH ECOLOGICALLY AND ECONOMICALLY.

THE WORST THREAT TO THE ENVIRONMENT IN CHINA IS NOT "UNREGULATED" GROWTH, BUT THE CONTINUING EXISTENCE OF SEVERE POVERTY.

FOR EXAMPLE, DEFORESTATION LARGELY IS CAUSED BY "PUSH" FROM LANDLESS PEASANTS TO CLEAR LANDS IN A FRONTIER AREA WHERE PROPERTY RIGHTS ARE STILL UNDEFINED. (BECKERMAN, P. 35-6) ALSO CONTRIBUTING IS THE FACT THAT 70% OF RURAL ENERGY CONSUMPTION IS FROM BIOMASS, A LOW COST BUT HORRIBLY INEFFICIENT FUEL THAT NOT ONLY CONTRIBUTES TO DEFORESTATION BUT TO SEVERE AIR POLLUTION PROBLEMS AS WELL. ("EXPLOITATION, UTILIZATION AND DEMONSTRATION PROJECTS OF BIOMASS ENERGY," HTTP://WWW. HONGKONG-WINDOW.COM/CA21/4-5C.HTML, UNDATED) ECONOMIC GROWTH WOULD REPLACE RELIANCE ON THIS "POOR MAN'S" FUEL WITH OTHER MORE EFFICIENT AND ENVIRONMENTALLY BENIGN FUEL STOCKS.

OR CONSIDER THE ISSUE OF URBAN AIR QUALITY, ONE OF THE MOST IMPORTANT ENVIRONMENTAL ISSUES FACING CHINA. THE WIDESPREAD INTRODUCTION OF THE AUTOMOBILE IS ONE OF THE MAIN CAUSES OF POOR AIR QUALITY. VEHICULAR EMISSIONS FROM CHINESE-MADE AUTOMOBILES ARE ABOUT 15-20 TIMES GREATER THAN THOSE OF COMPARABLE FOREIGN VEHICLES. ("EMISSION CONTROL, ENERGY ECONOMY AND IMPROVEMENT OF SAFETY FOR AUTOMOTIVE PRODUCTS," HTTP://WWW.HONGKONG-WINDOW.COM/CA21/4-4.HTML, UNDATED) BUT THE REASON THAT CHINESE VEHICLES ARE SO DIRTY IS NOT SIMPLE STUPIDITY, CORPORATE VENALITY, OR SOCIAL MYOPIA ABOUT ENVIRONMENTAL HEALTH. THE RESAON IS THAT ONLY VERY LOW-PRICED TRANSPORTATION IS AFFORDABLE IN A SOCIETY WITH A $700 PER-CAPITA INCOME. ONLY WITH GROWTH WILL CHINESE CONSUMERS BE ABLE TO AFFORD LESS POLLUTING VEHICLES. SIMPLE REGULATORY EDICTS WILL ONLY DISCOURAGE NEW AUTOMOBILE SALES AND DRIVE CONSUMERS TO OLDER, POORLY MAINTAINED, AND HEAVILY POLLUTING EXISTING VEHICLES.

IT IS ALSO IMPORTANT TO REMEMBER THAT GROWING CONSUMER DEMAND FOR ENVIRONMENTAL GOODS, SUCH AS PARKS, RECREATIONAL FACILITIES, AND URBAN AIR QUALITY, IS LARGELY RESPONSIBLE FOR THE IMPROVING QUALITY AND QUANTITY OF BOTH PUBLIC AND PRIVATE ECOLOGICAL RESOURCES. IN A MARKET ECONOMY, AFTER ALL, PROFITS ARE MADE BY MEETING PUBLIC DEMAND. BUT VIRTUALLY ALL ANALYSTS OF THIS PHENOMINON CONCLUDE THAT, FOR THE VAST MAJORITY OF CONSUMERS, ENVIRONMENTAL AMENITIES ARE "LUXURY GOODS" THAT ARE IN GREATEST DEMAND IN THE WEALTHIES SOCIETIES. ECONOMIC GROWTH IS THUS DIRECTLY RESPONSIBLE FOR IMPROVING ENVIRONMENTAL QUALITY BECAUSE IT CREATES THE SOCIAL CONDITIONS NECESSARY FOR INCREASED DEMAND FOR -- AND THE CORRESPONDING INCREASE IN SUPPLY OF -- ENVIRONMENTAL QUALITY.

MOREOVER, IT IS ALSO A FACT THAT EFFECTIVE ENVIRONMENTAL PROTECTION REQUIRE LARGE CAPITAL INVESTMENTS. IN THE UNITED STATES, FOR EXAMPLE, THE ESTABLISHMENT OF EFFECTIVE, STATE-OF-THE-ART MUNICIPAL SEWAGE TREATMENT FACILITIES REQUIRED AN INVESTMENT OF $150 BILLION OVER THE PAST 25 YEARS. ONLY A WEALTHY SOCIETY CAN AFFORD SUCH AN UNDERTAKING. ALL THE REGULATIONS IN THE WORLD CAN'T SUBSTITUTE FOR ADVANCED TECHNOLOGY CAPABLE OF TURNING HUMAN WASTE INTO DRIKABLE WATER.

FINALLY, THERE IS A STRONG CORRELATION BETWEEN PERSONAL WEALTH AND HEALTH. NUMEROUS STUDIES HAVE FOUND THAT EDUCATION AND INCOME ARE THE MOST IMPORTANT FACTORS IN DETERMINING HOW LONG A PERSON WILL LIVE. (NEW ENGLAND JOURNAL OF MEDICINE, 1993, CITATION) SINCE MOST FEDERAL ENVIRONMENTAL LAWS ARE CONCERNED, NOT WITH ECOLOGICAL PROTECTION PER SE, BUT WITH PROTECTING HUMAN HEALTH FROM OSTENSIBLY DANGEROUS POLLUTANTS, PARTICULARLY COSTLY ENVIRONMENTAL REGULATIONS CAN DO MORE HARM THAN GOOD BY LOWERING LIVING STANDARDS BELOW WHERE THEY OTHERWISE MIGHT BE WHICH, IN TURN, INCREASES AN ARRAY OF HEALTH RISKS.

2B. BIAS TOWARD MORE AGGESSIVE CENTRALIZED PLANNING.

VIRTUALLY EVERY CHAPTER OF CHINA'S AGENDA 21 CONTAINS A CALL FOR MORE STATE PLANNING OF THE ECONOMY IN ORDER TO ENSURE THE MOST EFFICIENT USE OF RESOURCES. A REPRESENTIVE EXAMPLE OF THE SWEEPING NATURE OF THE GOVERNMENT'S HUBRIS IN THIS REGARD CAN BE FOUND IT'S PROPOSAL FOR "SUSTAINABLE DEVELOPMENT THROUGH INDUSTRIAL TRANSFORMATION AND CLEANER PRODUCTION IN BENXI CITY." THE CHINESE GOVERNMENT PROPOSES TO SUBSITUTE BENXI'S HEAVY INDUSTRIAL SUPERSTRUCTURE WITH "NEW SUPPORTING INDUSTRIES BASED ON RECYCLABLE NATURAL RESOURCES," SUCH AS THE CULTIVATION OF "OX, CASHMERE GOATS, HAWTHORNS, MOUNTAINOUS WILD VEGETABLES, FRAGRANT RICE, AND STOCK POTATOES." "CENTRES FOR PRODUCING ENZYMATIC PREPARATIONS AND CULTIVATING EDIBLE MUSHROOMS" ARE TO BE ESTABLISHED, AS ARE "CENTRES FOR CULTIVATING CHINESE HERBS." INSTEAD OF HEAVY MACHINERY, THE WORKERS OF BENXI WILL ALSO DIRECTED TO "BREEDING TROUT" AND "CULTIVATING GENETIC HYBRIDS."

THIS IS SIMPLY ECONOMIC LUNACY ON A GRAND SCALE. IT IS ALSO COUNTERPRODUCTIVE FROM AN ECOLOGICAL AND PUBLIC HEALTH STANDPOINT FALL ALL OF THE REASONS MENTIONED EARLIER. THE MORE CHINA RESORTS TO THIS KIND OF OLD-STYLE CENTRALIZED ECONOMIC PLANNING, THE MORE LIKELY CHINA IS TO RETURN TO THE GRINDING POVERTY THAT CHARACTERIZED YOUR COUNTRY BEFORE THE ADVENT OF ECONOMIC LIBERALIZATION ALMOST TWO DECADES AGO. AND THE CHINA OF MAO COULD HARDLY BE CALLED A "SUSTAINABLE" SOCIETY.

2C. SPURIOUS GREEN ECONOMIC AND SCIENTIFIC OBSESSIONS.

CONSIDER AGENDA 21'S STAMPEDE TO ABATE GLOBAL CLIMATE CHANGE. FOR THE SAKE OF ARGUMENT, ACCEPT THAT THE CONCENCUS OPINION OF THE U.N. INTERNATIONAL PANEL ON GLOBAL CLIMATE CHANGE IS CORRECT. THE OVERALL EFFECT ON THE WORLD'S ECONOMY OF A DOUBLING OF CARBON CONCENTRATIONS WOULD REDUCE GLOBAL OUTPUT BY 1-2 PERCENT. SUPPOSE FURTHER FOR THE SAKE OF ARGUMENT THAT THESE ESTIMATES ARE TOO CONSERVATIVE, AND THAT GLOBAL PRODUCTION WOULD BE DAMAGED 10 TIMES MORE THAN IS ANTICIPATED. ASSUMING EXTREMELY CONSERVATIVE ESTIMATES OF GROWTH THROUGH THE END OF THE NEXT CENTURY, THEN, AVERAGE PER CAPITA WORLD INCOME IN A GLOBAL WARMING WORLD WOULD BE ONLY ABOUT 4 TIMES LARGER THAN TODAY'S RATHER THAN 4.4 TIMES LARGER THAN TODAY'S. (BECKERMAN, P. 112) WOULD THIS BE SUCH A GREAT DISASTER? DOES IT JUSTIFY IMPOSING DRACONIAN CONTROLS ON INDUSTRIAL PRACTICES TODAY IN ORDER TO EVEN FURTHER IMPROVE THE LIVES OF OUR INCOMPARABLY WEALTHIER PROGENY TOMARROW, PARTICULARLY IF THE MAIN VICTEMS OF SUCH POLICIES WOULD BE THE POOREST TODAY OF THE WORLD'S INHABITANTS?

OR CONSIDER CHINA'S OBSESSION WITH "GREEN FOODS," A PROGRAM THAT DISCOURAGES THE USE OF CHEMICAL FERTILIZERS OR PESTICIDES AND IS ONE OF THIS COUNTRY'S PROUDEST ACHIEVEMENTS IN THE FIELD OF "SUSTAINABLE DEVELOPMENT." ("REPORT OF THE WORKING GROUP ON TRADE AND ENVIRONMENT OF CCICED") ACCORDING TO THE CCICED, "ECO-AGRICULTURE...IS THE ONLY WAY FOR SUSTAINED GROWTH," AND IS NECESSARY TO "PROTECT THE NATION'S ENVIRONMENT AND TO ENHANCE PEOPLE'S HEALTH." (IBID) NOW, THERE IS ABSOLUTELY NO EVIDENCE THAT ADVANCED AGRICULTURAL CHEMICALS -- PROPERLY APPLIED -- POSE ANY HEALTH THREAT TO CONSUMERS OR THE ENVIRONMENT. (BRUCE AMES, LOIS GOLD, AND WALTER WILLET, "THE CAUSES AND PREVENTION OF CANCER," PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES 92 (1995): 5258-65). IN FACT, THE NATURAL CARCINOGENS FOUND IN ORGANIC FOOD ARE FAR MORE PREVALENT AND TOXIC THAN THE SYNTHETIC CHEMICALS USED TO BOOST PRODUCTION (BRUCE AMES AND LOIS GOLD, CHAPTER ON FOOD SAFETY IN "THE TRUE STATE OF THE PLANET," RONALD BAILEY, ED. (NEW YORK: FREE PRESS, 1996). SECOND, IT IS LOW-INTENSITY, TRADITIONAL AGRICULTURE THAT CONTRIBUTES MOST TO SOIL EROSION AND ENVIRONMENTAL DEGRADATION, NOT MODERN METHODS OF HIGH-INTENSITY AGRICULTURE WHICH HAVE PROVEN FAR LESS ENVIRONMENTALLY DAMAGING (DENNIS AVERY, HUDSON INSTITUTE, CITATION). FINALLY, INSOFAR AS "GREEN FOODS" ARE FAR MORE EXPENSIVE TO DELIVER TO MARKET THAN THOSE PRODUCED BY MODERN AGRICULTURE, THE HEALTH OF CHINESE CONSUMERS IS COMPROMISED BECAUSE THEY ARE UNABLE TO PURCHASE AS MUCH FOOD AND NUTRITION THAN THEY MIGHT HAVE OTHERWISE. (AMES, GOLD, AND WILLET)

INDEED, CHINA'S AGENDA 21 IS LITTERED WITH ODD-BALL ENVIRONMENTALIST ENTHUSIASMS THAT HAVE PROVEN ECONOMICALLY DAMAGING AND ECOLOGICALLY DUBIOUS TO BOOT. SUBISIDIES AND ORDERS FOR VARIOUS KINDS OF "RENEWABLE ENERGY," MANDATED ENERGY EFFICIENCY STANDARDS, AND STATE ORGANIZED RECYCLING ARE A REPRESENTITIVE SAMPLING OF THE POLICIES THAT HAVE BEEN TRIED AND FOUND WANTING IN THE WEST BUT ARE NOW BEING EMBRACED UNQUESTIONINGLY BY THE CHINESE GOVERNMENT (ROBERT L. BRADLEY, JR., "RENEWABLE ENERGY: NOT CHEAP, NOT GREEN," POLICY ANALYSIS, CATO INSTITUTE, JULY 1997, IN PRESS).

FINALLY, SOMETHING MUST BE SAID ABOUT THAT SUSTAINABLE DEVELOPMENT PROJECT THAT CHINA IS MOST FAMOUS FOR; POPULATION CONTROL....

V. RECOMMENDATIONS FOR CHINA.

1. DISENGAGE FROM THE GLOBAL "SUSTAINABLE DEVELOPMENT" NETWORK.

2. DISMANTLE DOMESTIC AGENCIES DEDICATED TO PROMOTING SUSTAINABLE DEVELOPMENT.

3. FURTHER FREE THE ECONOMY TO PROMOTE ECONOMIC GROWTH.

4. ELIMINATE GOVERNMENT SUBSIDIES IN THE ECONOMY.

SOMETHING HERE ABOUT ENERGY AND WATER SUBSIDIES.

5. ESTABLISH LEGALLY ENFORCEABLE PROPERTY RIGHTS FOR ENVIRONMENTAL PROPERTY.

POLLUTION SHOULD BE THOUGHT OF AS A KIND OF TRESPASS -- THE DISPOSAL OF ONE'S GARBAGE OR WASTE ON THE PROPERTY OR PERSON OF ANOTHER. THE FUNDAMENTAL PREMISE OF CHINESE POLICY IS THAT IT IS THE GOVERNMENT'S ROLE TO DETERMINE TO WHAT EXTENT SUCH TRESPASS SHOULD BE ALLOWED IN ORDER TO BEST FACILITATE THE "PUBLIC INTEREST." AN ALTERNATIVE ENVIRONMENTAL PARADIGM, HOWEVER, WOULD HOLD THAT, IF POLLUTION IS ESSENTIALLY A TRESPASS UPON PRIVATE PROPERTY, THEN THE PROPERTY OWNER, NOT THE GOVERNMENT, SHOULD DETERMINE WHAT IS OR IS NOT ACCEPTABLE AND UNDER WHAT CIRCUMSTANCES OR CONTRACTUAL ARRANGEMENTS SUCH TRESPASS IS TO BE ALLOWED. DISPUTES SHOULD BE BROUGHT TO CIVIL COURTS, NOT POLITICIZED LEGISLATURES, FOR ADJUDICATION.

WHILE SOME ENVIRONMENTAL PROBLEMS -- PRIMARILY THOSE WHERE MANY HARD TO IDENTIFY SOURCES OF POLLUTION INFLICT THE HARM -- ARE CLEARLY NOT AMENABLE EASILY BY RECOURSE TO PROPERTY RIGHTS PROTECTION, A SURPRISINGLY LARGE NUMBER OF COMMON ENVIRONMENTAL PROBLEMS ARE AMENABLE TO AN ENGLISH "COMMON LAW" REGIME. (TERRY ANDERSON AND DONALD LEAL, "FREE MARKET ENVIRONMENTALISM" (SAN FRANCISCO: PACIFIC RESEARCH INSTITUTE, 1991, AND ROGER MEINERS AND BRUCE YANDLE, EDS., "TAKING THE ENVIRONMENT SERIOUSLY (LANHAM, MD: ROWMAN & LITTLEFIELD, 1993) CARL POPE, PRESIDENT OF THE SIERRA CLUB, BELIEVES THAT THIS SORT OF APPROACH "WOULD YIELD RESTRICTIONS ON POLLUTION MORE STRINGENT THAN THOSE EMBODIED IN ANY CURRENT FEDERAL AND STATE POLLUTION LAWS." (CITATION) THAT'S CERTAINLY TRUE IF A POLLUTANT IS TRULY HARMFUL OR A SIGNIFICANT NUISANCE, SINCE INDIVIDUALS, NOT GOVERNMENT AUTHORITIES, WOULD HAVE THE FINAL SAY OVER HOW MUCH POLLUTION THEY ARE WILLING TO TOLERATE ON THEIR PROPERTY OR PERSONS. IT WOULD ALSO HAVE THE BENEFIT OF ALLOWING AN ARRAY OF VOLUNTARY CONTRACTUAL RELATIONSHIPS BETWEEN POLLUTER AND POLLUTED, INTERNALIZE THE COST OF POLLUTION, AND MINIMIZE THE TRANSACTION COSTS AND INEFFICIENCIES CAUSED BY POLITICIZED RULEMAKING.

6. REPLACE COMMAND & CONTROL REGULATIONS WITH MARKET-ORIENTED REGULATORY POLICIES.

ACCORDING TO XIE ZHENHUA, ADMINISTRATOR OF THE NATIONAL ENVIRONMENTAL PROTECTION AGENCY, CHINA IS SHIFTING ITS POLLUTION CONTROL POLICIES FROM END-OF-PIPE STANDARDS TO WHOLE PRODUCTION PROCESS CONTROL. IN OTHER WORDS, CHINA IS MOVING FROM COMMAND & CONTROL REGULATION TO COMMAND & CONTROL REGULATION SQUARED. YET THESE SORTS OF REGULATIONS REQUIRE PLACE AN INFORMATIONAL BURDEN ON PUBLIC OFFICIALS THAT IS IMPOSSIBLE TO MEET IN THE REAL WORLD. EVERY FACILITY IS DIFFERENT. EVERY PRODUCT IS UNIQUE. EVERY AIR AND WATER SHED HAD DIFFERENT CARRYING CAPACITIES FOR DIFFERENT POLLUTANTS. BY NECESSITY, CENTRAL REGULATORS MUST ISSUE "ONE-SIZE-FITS-ALL STANDARDS SINCE THERE SIMPLY ISN'T ENOUGH MANPOWER OR EXPERTISE AVAILABLE TO CAREFULLY WEIGH THE MOST EFFICIENT MANDATES FOR EACH FACILITY OR POLLUTION SHED, MUST LESS EACH MANUFACTURING PROCESS.

WHEN PROPERTY RIGHTS REGIMES ARE UNABLE TO EFFICIENT ADDRESS POLLUTION PROBLEMS, BOTH COMMON SENSE AND EXPERIENCE TELLS US THAT INDIVIDUAL PLANT MANAGERS ARE BETTER EQUIPPED TO DISCOVER THE MOST EFFICIENT WAYS TO CONTROL POLLUTION AT THEIR FACILITIES THAN ARE FEDERAL ENVIRONMENTAL TECHNICIANS. THAT IS THE CASE, NOT ONLY BECAUSE THOSE MANAGERS HAVE MORE DIRECT KNOWLEDGE OF THEIR FACILITIES AND THE TECHNOLOGY OF PRODUCTION, BUT BECAUSE COMPETITION FORCES COST MINIMIZATION, AND EVEN THE MOST DEDICATED PUBLIC OFFICIAL ISN'T GOING TO LIE AWAKE AT NIGHT SEARCHING FOR NEW SOLUTIONS TO POLLUTION CONTROL PROBLEMS.

ECONOMIST TOM TIETENBERG REPORTS THAT EMPIRICAL STUDIES SHOW THAT "PERFORMANCE BASED STANDARDS" -- THOSE THAT REQUIRE REGULATORS SIMPLY TO DECIDE HOW MUCH POLLUTION CAN BE ALLOWED FROM A FACILITY AND LEAVE IT TO THE FACILITY TO MEET THAT STANDARD IN WHATEVER WHY IT DESIRES -- RESULT IN UNIFORMALY LOWER CONTROL COSTS. (CITATION) A 1990 JOINT AMOCO-EPA STUDY A YORKTOWN, VIRGINIA OIL REFINERY, FOR INSTANCE, FOUND THAT FEDERAL ENVIRONMENTAL STANDARDS COULD BE MET AT 20 PERCENT OF THE CURRENT COSTS IF THE REFINERY WERE ALLOWED TO ADOPT ALTERNATIVES TO EPA MANDATES.

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