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China's horrible air pollution

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In 2008, a detailed analysis of powerplants in China by MIT researchers debunked the widespread notion that outmoded energy technology or the utter absence of government regulation is to blame for that country's notorious air-pollution problems. The real issue, the study found, involves complicated interactions between new market forces, new commercial pressures and new types of governmental regulation.

After detailed survey and field research involving dozens of managers at 85 power plants across 14 Chinese provinces, Steinfeld and his co-authors, Richard Lester [58 page report] (professor, nuclear science and engineering and director of the MIT Industrial Performance Center) and Edward Cunningham (doctoral candidate, political science) found that in fact most of the new plants have been built to very high technical standards, using some of the most modern technologies available. The problem has to do with the way that energy infrastructure is being operated and the types of coals being burned.

New market pressures encourage plant managers to buy the cheapest, lowest quality and most-polluting coal available, while at the same time idle expensive-to-operate smokestack scrubbers or other cleanup technologies. The physical infrastructure is advanced, but the emissions performance ends up decidedly retrograde.

Air Pollution incidents have been particularly bad in the last year or two in China

Last January, Beijing’s level of fine particles, 2.5 microns in diameter or under and known as PM 2.5, reached at least 20 times the level recommended by the World Health Organization for a 24-hour period. This prompted a scrambling government to ram through new air-quality protections.

China's regulation to reduce sulfur dioxide emissions from power plants may be one of the most swiftly effective air pollution policies ever implemented anywhere. Those emissions fell sharply from 2006 to 2010, according to a new study by Chinese and American researchers that we took part in, preventing as many as 74,000 premature deaths from air pollution in 2010.

Fines were way too small. Penalties were cheaper than turning on pollution controls

In Sept, 2013, the Beijing government released its second draft of the regulation on Sept 25, scrapping the 1-million-yuan ($ 163,396) limit and adding five categories of illegal behavior to a list of those for which fines will be doubled.

In March 2013, in China, however, the maximum statutory fine for failing to operate the facilities of air pollutant treatment is 50,000 yuan ($7,653), and fines for violating emissions standards cost 100,000 yuan ($15,873) at most. Because it costs less for factories to pay penalty fees than to install emissions control equipment, businesses in China often ignore environmental regulations or opt to pay fines rather than comply with standards.

There was talk about executing those who are the biggest polluters in mid-2013 to quell populist protests.

So why are China’s efforts at emissions control falling short?

There are several reasons. One of them is China’s instinctual response to such challenges: a top-down approach to try to engineer its way through them according to master plans. The result is that China may be winning battles but not the wars on emissions control, because its faith in mandates has met its match: an economy that is growing too fast, and atmospheric challenges that are too multifaceted for even the smartest planners to tame.

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