Spillover and Feedback Effects in Low Carbon Development

440 Pages·2021·5.13 MB·English

by  Youguo Zhang

Spillover and
Feedback Effects
in Low Carbon
Development
Youguo Zhang
Spillover and Feedback Effects in Low Carbon
Development
Youguo Zhang
Spillover and
Feedback Effects in
Low Carbon
Development
Youguo Zhang
Institute of Quantitative & Technical Economics
Chinese Academy of Social Sciences
Beijing, China
ISBN 978-981-16-4970-7 ISBN 978-981-16-4971-4 (eBook)
https://doi.org/10.1007/978-981-16-4971-4
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
Nature Singapore Pte Ltd. 2021
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights of
translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and retrieval,
electronic adaptation, computer software, or by similar or dissimilar methodology now
known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are
exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information
in this book are believed to be true and accurate at the date of publication. Neither the
publisher nor the authors or the editors give a warranty, expressed or implied, with respect to
the material contained herein or for any errors or omissions that may have been made. The
publisher remains neutral with regard to jurisdictional claims in published maps and
institutional affiliations.
This Palgrave Macmillan imprint is published by the registered company Springer Nature
Singapore Pte Ltd.
The registered company address is: 152 Beach Road, #21- 01/04 Gateway East, Singapore
189721, Singapore
P
reface
Global warming is an environmental challenge facing all of humanity.1 As
the world’s largest developing country and one of the largest carbon emit-
ters, China has on many occasions and through a series of pledges declared
its commitment to playing a key role in climate change mitigation. Most
notably, China announced at the United Nations Climate Change
Conference held in Paris in November 2015 its intention to reach carbon
dioxide emissions peak no later than 2030.
However, rising levels of economic development will not lead to carbon
emissions peak as a matter of course, and the Chinese government urgently
needs to determine which route and policies to adopt to achieve its emis-
sions peak and intensity targets. Instead of imposing rigid constraints on
economic growth and social development, the right route and policies
would facilitate the green and low-carbon transformation of the Chinese
economy (He 2014). But making the wrong choices in our carbon
policies may well deal a serious blow to the country’s economic and social
development, or worse, lead to a hard landing.
This is why these strategy and policy questions about emissions reduc-
tion in China have not only generated considerable interest and concern
among diverse groups of citizens but also become the subject of many
1 Results of this study have appeared in China Industrial Economics, The Journal of
Quantitative and Technical Economics, China Population, Resources and Environment,
Energy Economics, Energy Policy and other authoritative academic journals in the fields of
economics and environmental research at home and abroad. Some results have been included
in the database of photocopied newspapers and journals of the Renmin University of China.
v
vi PREFACE
academic studies. Of the range of related issues the most pressing is what
emissions targets China should set itself, for different regions and time
periods (He 2014; Chen and Groenewold 2015). On the one hand, in a
country of such a vast territory, significant regional differences exist in
terms of level of economic and social development, place in the national
economy, when emissions are forecast to peak, projected peak emission
level, and how motivated it is to reach a peak (Chen and Groenewold
2015). On the other hand, different regions are also closely connected to
one another through a variety of social and economic ties, which should
be fully taken into consideration in strategy decisions and policy designs
(Meng et al. 2013).
Therefore, a top priority for the Chinese government is to find the best
way to coordinate development among different regions under low-
carbon constraints by transforming current regional development pat-
terns, mode of production and lifestyle, with the ultimate aim of realizing
the compatibility between ecological protection and social and economic
development. This book presents the author’s understanding of what light
economics can shed on this cluster of issues.
regional coordination in low-carbon develoPment:
concePtualization, meaning
and Strategic Significance
Concept of Regional Coordination in Low-Carbon Development
When a large system achieves coordinated development, its various subsys-
tems behave in ways that both supplement and complement one another.
Not only does each subsystem put its own advantages to maximum use
but it also makes up for what it lacks by drawing on what other subsystems
have. It is a state marked by maximal mutual adaptation, support, coop-
eration and collaboration among the different subsystems of a larger sys-
tem and minimal tension among them. For any dynamic system as a whole,
this represents development optimality.
When we add a regional dimension to the above concept, we get that
of “coordination in regional development”. Notably, the scope of coordi-
nation in regional development is not confined to any one particular
region, but is broad enough to cover the common development of mul-
tiple regions. It calls for treating different regions as constituting an
PREFACE vii
organic whole, in which each region is an indispensable subsystem, at once
independent from and closely connected with other regions. Furthermore,
coordination in regional development does not mean that multiple regions
are considered as a whole without distinction, or that the focus is on only
one of them without considering other regions and the whole of all
regions. It is to attain overall objectives on the basis of taking fully into
account the ties among regions and the objectives of each region.
Low-carbon development is a model of sustainable development char-
acterized by low carbon emissions. Its other properties can include low
energy intensity and low levels of pollution. This is how low-carbon devel-
opment is understood as a static concept, which refers to the ideal state
once it has been achieved. However, the ideal state cannot be achieved
overnight. Realizing it always requires the joint efforts of all members of
the society, and often takes a long time. Therefore, understood as a
dynamic concept, that is, encompassing all stages of development, low-
carbon development can be defined as [a mode of development marked
by] efforts to achieve social and economic development goals while reduc-
ing carbon emissions as much as possible, and ultimately to free economic
growth from its dependency on carbon consumption.
The concept of “regional coordination in low-carbon development” is
obviously the combination of “coordination in regional development”
and “low-carbon development”. In other words, both the criteria of coor-
dination in regional development and low-carbon development must be
met. If low-carbon development is the purpose and coordination is con-
sidered as a constraint or approach, regional coordination in low-carbon
development can be understood as a state in which the advantages and
initiative of each region in a certain area are brought into play to foster
benign interactions between regions and thus enable each region and the
whole area to achieve low-carbon development to the maximum extent.
Similarly, if low carbon is considered as a constraint, to pursue regional
coordination in low-carbon development means to achieve coordination
in regional development in a certain area, and then the common develop-
ment of all regions in the area.
viii PREFACE
Meanings of Regional Coordination in Low-Carbon Development
Focusing on Economic Growth Achieved Based on Low Carbon Emissions
Development is the top priority. Growing the economy remains an impor-
tant task for China in the current stage. It is essential to completing the
building of a moderately prosperous society in all respects in 2020 and
reaching the targets of doubling the GDP and per capita income in 2020
over 2010. Pursuing regional coordination in low-carbon development is
also to serve the strategic goal of building a moderately prosperous society
in all respects and its fundamental focus on development requires sus-
tained economic growth at a medium to high speed. Moreover, higher
demands are placed on the quality of economic growth, i.e. medium-to-
high-speed sustainable economic growth should be achieved at the cost of
as low carbon emissions as possible and as low energy consumption and
other pollutant emissions as possible. Economic growth must be con-
trolled within the range that the environment can bear, i.e. no irreversible
damage can be caused to the environment, especially the climate. At the
same time, the security of energy and other resources must be ensured.
This requires the continuous innovation and advancement of technology,
the continuous improvement and upgrading of industrial structure and
energy mix, and the continuous formation of sustainable lifestyles, so that
the dependence of economic growth on energy consumption, carbon
emissions, resource consumption and other pollution emissions keeps
declining.
Focusing on the Low-Carbon Development of a Whole Area and Its
Constituent Parts
To pursue regional coordination in low-carbon development means that
the overriding consideration should be a whole area, rather than one or a
few places within it, and thus a holistic approach must be introduced when
developing strategies, plans and policies. However, the low-carbon devel-
opment of an area depends on how well its constituent parts proceed with
it. When each and every place lowers their emissions, the area as a whole
will move closer to its low-carbon development goal. Furthermore, as
each place differs, sometimes widely, in their advantages and disadvan-
tages, their distinct features should be taken into full account in plan for-
mulation and implementation so as not to produce negative impact on the
low-carbon development of the whole area. In a nutshell, regional
PREFACE ix
coordination in low-carbon development means ensuring low-carbon
development is pursued in the area as a whole and in every part of it.
Encouraging Healthy Competition and More Importantly Win-Win
Cooperation Between Regions
The regions in the same area, though closely related, are also relatively
independent, and have their own interests and responsibilities. In the arti-
cle “On the Ten Major Relationships”, Mao Zedong summed up China’s
basic experience in building socialism, and noted the need to give full play
to the initiative of both central and local governments. Many scholars hold
that China has achieved high-speed economic growth since the beginning
of reform and opening up thanks to the fierce competition among regions
driven by the pursuit of economic growth. Therefore, to achieve overall
low-carbon development, the initiative of all regions should also be fully
brought into play. If the incentive mechanism is centered around low-
carbon development, healthy competition among regions is bound to be
fostered, which will help to unlock every region’s potential for low-carbon
development. However, the competition is not about the survival of the
fittest, i.e., it is not intended to make some regions become more devel-
oped and other regions less developed but to motivate every region to
better use their own advantages, or strive to improve their own advantages
and overcome their disadvantages so that all regions can develop together.
Too much emphasis on competition among regions may turn out to be
counterproductive, leading to local protectionism, for example, which will
undermine the development of the whole area. Therefore, to achieve
regional coordination in low-carbon development, all regions should be
encouraged to work together for win-win outcomes so that the advantages
of each region can be best leveraged, creating greater synergies and pro-
moting overall low-carbon development to the maximum.
Strategic Significance
To Pursue Regional Coordination in Low-Carbon Development Is
an Inherent Requirement of the Endeavor to Build a Moderately
Prosperous Society in All Respects and to Attain Long-Term
Development Goals
Coordinated development has been recognized as the basis of social sus-
tainability by many countries and regions in the world. It is one of the five
x PREFACE
essential elements of China’s new vision for development, as well as an
integral part of coordinated development. Low-carbon development is
also considered by most countries and regions of the world as the corner-
stone of social sustainability. The 18th National Congress of the
Communist Party of China (CPC) regards ecological progress as an
important aspect of socialism with Chinese characteristics, while green,
low-carbon, and circular development is a specific embodiment of ecologi-
cal progress put forward at this meeting. The Fifth Plenary Session of the
18th CPC Central Committee further established green development as
one of the five essential elements of China’s new vision for development.
In a sense, low-carbon development can be understood as an important
component of green development. Therefore, the idea of regional coordi-
nation in low-carbon development is not only consistent with China’s
vision for development, but also needed for the building of socialism with
Chinese characteristics.
Regional Coordination in Low-Carbon Development Is Not Only
a Prerequisite for But Also an Important Way of Advancing
Ecological Progress
To promote ecological progress is a complex project that has broad and
profound implications. Pressing tasks in this regard are to reduce carbon
emissions and ensure energy security, and low-carbon development must
be pursued in order to accomplish such tasks. Furthermore, low-carbon
development has significant and positive externalities on other areas of
ecological progress, because it is beneficial to the reduction of not only
energy consumption and carbon emissions, but also consumption of other
resources and emissions of other pollutants. Therefore, the efforts to
achieve low-carbon development are bound to promote ecological prog-
ress, improve the quality of the environment, and help people share the
benefits of ecological progress, and protect people’s physical and men-
tal health.
Regional Coordination in Low-Carbon Development Helps Integrate
the Ecological and Economic Endeavors, Contributing to a Robust
Economic Growth and Sustainable Competitiveness
In the short term, low-carbon development means tightened control over
carbon emissions, which may have some negative impact on economic
growth. However, such tightened control is needed to make the shift from
energy- and pollution-intensive growth model toward a low-carbon one.