GAP-JOURNAL 2012/13 - AFA

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ticular energy. The correlation between environmental degradation and per capita
income of countries has been an extensive subject of research over the past two decades
and isexpressed inthe environmental Kuznets curve (Groffman &Baron 2006). The
ecological threshold marks anecosystem’s point of no return. If the pollution ofanecosystem
exceeds this level, atipping point is reached, often leading todrastic change of
the ecosystem’s health. Typically, ecosystems are resilient against pollution and are
capable of recovery over time. However, if the ecological threshold istrespassed, the
ecosystem’s health may suffer permanently. The ecosystem’s critical load is transgressed
and the impacts ofpollution cannot be undone easily –the so-called point of
irreversible damage is reached. Ecological extinction isthe definitive point of no return
(Groffman &Baron 2006). Reaching the ecological threshold would thus have fatal
consequences for China’s younger generations and the generations which have not yet
been born.
Impeding economic growth for the sake of the environment would, however, have an
equally disastrous impact onthe well-being ofChina. “We're still adeveloping country
-the standard of living isstill not high, employment trends are serious and each level of
government is paying attention toeconomic growth”, Zhang Lijun, vice minister of
environmental protection said inaninterview with Reuters (“China Says Environment
Still Suffering Growth Pains”), taking aclear position. China’s industrial sector accounted
for 46.8 per cent ofits GDP in 2010 (Zhang 2012: 4), whereas the secondary
sector in more industrialised countries tends to amount between twenty and thirty per
cent (Central Intelligence Agency, “GDP Composition bySector”). The nation’s industrial
sites, metal smelters, and coal-fired power plants are thus critical to its economic
success.
“Developing countries are now beginning to industrialise. It is unfair tolimit their
development”, Xie Zhenhua, vice minister ofthe National Development and Reform
Commission (NDRC) argued in 2010 (“China reiterates climate change principle of
‘common but differentiated responsibility’”), implying that China must rely onits highpolluting
industry in order tocatch up with the Western economies. Since the country’s
competitive advantage onthe global export market is its strong price competitiveness,
China does not have incentives to enforce additional anti-pollution laws which lead to
augmented production costs. Apart from that, China depends heavily onforeign direct
investments. The more environmental regulations and emission taxes itenforces upon
companies, the less attractive the nation isfor foreign investors (Ali and Guo 2005: 21).
As aresult, China finds itself in adilemma between economic growth and environmen-