http://www.nytimes.com/2014/04/12/business/international/china-takes-on-big-risks-in-its-push-for-shale-gas.html?ref=international&_r=0
China is tapping into the shale gas that their natural environment have. This being so the Chinese government policies are not preventing large scale digging which is three times more that United States regulation. There are safety concerns revolving around this issue being that the state owned companies are allowed to dig deeper. The government will be using small villages to build high rises that will house the workers for fracking. In theory, this will increase the aggregate supply in the long run resulting in economic growth which will improve standards of living per capita. However, there are environmental concerns that will greatly affect people in certain areas.
China is tapping into the shale gas that their natural environment have. This being so the Chinese government policies are not preventing large scale digging which is three times more that United States regulation. There are safety concerns revolving around this issue being that the state owned companies are allowed to dig deeper. The government will be using small villages to build high rises that will house the workers for fracking. In theory, this will increase the aggregate supply in the long run resulting in economic growth which will improve standards of living per capita. However, there are environmental concerns that will greatly affect people in certain areas.
I honestly believe that Chinese have made a wise decision by utilizing the natural resources that they have. More jobs will be created, aggregate supply will increase, and the standard of living will also increase. The Chinese economy will definitely experience some growth as a result of the utilization of shale gas. The only set back to this operation would be the effects that it has on the environment.
ReplyDeleteThe Chinese economic growth rate have surpassed many countries in this era, and I think that its time for the Chinese government to start focusing on improving the environment. They are many ways on increasing the standard of living and digging is one of them, but I think taking care of the environment is the most potent asset the government should thrive to take care of in order to improve the lives of its people.
ReplyDeleteI agree with Bien, I think that the economy growth is enough and they need to start focusing on the state of their environment. While getting into the natural gas business can boost the growth I believe that if they dont have the proper regulatory body then things could turn south in terms of the environment and safety.
ReplyDeleteI think they should be concerned about taking care of the enviornment rather than pushing it to its limits. They already produce some of the most air pollution in the world due to their large scale manufacturing plants. By adding the large scale digging they could be putting their agricultural sector in more danger.
ReplyDelete