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Environmental Economics: China and Developing Countries

By NikkiJade • Jun 8th, 2009 • Category: Videos


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This AlJazeera report highlights the challenge of balancing progressive environmental policies and the socio-economic impacts they have. In a policy move to help “green” China, the government banned free handouts of plastic bags by supermarkets on June 8th, 2008.  While some have suggested this is a “drop in the ocean” when it comes to dealing with global environmental challenges, the impacts of the policy over the past year  have made a significant difference both statistically and otherwise.

According to the China Chain Store and Franchise Association, as the world’s most populous nation, in the year since it was introduced the ban has saved an estimated 40 billion plastic bags — equivalent to 1.6 million tonnes of oil.  In another perspective, the policy move was a demonstration that China is making environmental preservation more of a priority, demonstrating great leadership on the move.

And China is not alone.  In 2002, Ireland introduced a levy on plastic bags that has led to a 95% reduction in their usage, while other developing countries such as Bangladesh, Zanzibar, Rwanda and South Africa, have implemented a ban to help mitigate severe litter and blockage of drains.  In Canada, the idea still has policymakers tied in a knot.  However, some municipalities and corporations are individually taking action, described briefly inThe Green Rocket’s review of grocery chain Zehr’s banning plastic bags.  Hopefully the move will continue to catch on a global scale.

Which leads to the other perspective of the AlJazeera report.  As the reporter discusses, the plastic bag ban has seen over 20,000 workers laid off with minimal compensation packages.  This has caused these workers, many of whom originally lost their farmland to the factory when it opened, to be without a livelihood or much of a chance of finding another job due to lack of skills and training.  The vulnerability of the lower income classes  demonstrated here is a major challenge to developing and developed countries alike.  While there is a large role for government in combating climate change through progressive policies, it is imperative that implementation considers equal and sufficient compensation for the most vulnerable and affected.

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NikkiJade is Co-Founder of TheGreenRocket.com, an indoor cycling instructor and Honours Economics and Global Studies student at Wilfrid Laurier University with a focus in econometrics, environmental and development economics, and ecotourism. Nicole is passionate about everything green, as she believes nature’s services can be used more efficiently to generate sustainable development in all areas of the world. Twitter: @NikkiJade
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