Using price and tax policies to promote energy conservation and emission reduction
On March 5, Cao Xianghong, a member of the Chinese People's Political Consultative Conference, an academician of the Chinese Academy of Engineering, and a representative from Sinopec, expressed concerns during an interview about the limitations of China’s natural resources, energy supply, and environmental capacity in supporting long-term economic growth. He emphasized that current public awareness campaigns and educational efforts are not sufficient to encourage people to adopt energy-saving and low-emission habits. To address this, he proposed implementing targeted pricing and taxation policies to incentivize energy conservation and reduce carbon emissions.
Cao also highlighted that over the past three years, China has actively promoted energy efficiency and emission reduction initiatives, with increased efforts last year. However, despite these measures, sales of small-displacement vehicles have continued to decline. Some analysts even predict that such vehicles may disappear from the Chinese market by 2010. "This is a concern for us, especially as we rely heavily on oil-based energy," he said.
He pointed out that there are still many irrational aspects in consumer behavior in China. Changing these habits, he added, cannot be achieved solely through education and awareness campaigns. Instead, he argued that economic instruments, such as pricing mechanisms and tax policies, are essential. He noted that in Europe, particularly in Italy, small-displacement cars have been popular due to favorable economic incentives, which serve as a model for China to consider.
In addition to policy reforms, Cao suggested that the government should focus more on creating a market environment that rewards sustainable choices. He stressed that while public education plays a role, it must be complemented by tangible financial incentives to drive real behavioral change. The goal, he said, is to build a more sustainable future where energy use is optimized, and environmental impact is minimized.
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