China, Energy

1
China, Energy Environment Awareness

• Presentation Prepared for
• China Sustainable Development
• Environmental Energy Systems Institute
• Shell Center for Sustainability
• Rice University
• September 27, 2004

Steven W. Lewis, Ph.D. James A. Baker
IIIInstitute for Public PolicyRICE
UNIVERSITY swlewis_at_rice.edu
2
Research on Energy, Energy Security and
Environmental Awareness in China at the Baker
Institute

• Regional Cooperation on Energy, Energy Security
  and Environmental Awareness in Northeast Asia
  (China, Japan and the U.S.)
• Privatization of National Oil Companies China in
  Comparative Perspective
• Lifestyles and Attitudes of Chinas Emerging
  Middle Class

3
NE Asia Energy Cooperation Workshops

• RESEARCH GOAL How to Integrate Chinas Energy
  Economy into the Global Energy Economy Through
  Cooperation Among China, Japan and the U.S.?
• RESEARCH PARTNERS
• UFJ Research and Institute for Energy Economics,
  Japan
• Chinese Association for Asian and African Studies
  (CASS)
• Horizon Survey Research and Boodc of Beijing

4
NE Asia Energy Cooperation Workshops

• POLICY PRESCRIPTIONS
• In the Long-Term, Major Consumer Nations Should
  Help China Develop the Institutions Necessary to
  Join the International Energy Agency and OECD
• In the Short-Term, Major Consumer Nations Should
  Help China Develop a National Energy Policy,
  Increase Energy Security and Environmental
  Awareness Through
• Coordinated Use of Petroleum and Product
  Stockpiles
• Coordinated Negotiations with to Major Oil
  Producers to Eliminate Asian Premium
• Standardization of Fuel and Fuel Consumption
  Measures in NE Asia
• Comparative Studies of Energy and Environment
  Awareness in China

5
Horizon Survey Research June 2004 Environment
Issues Rank Highly Among Urban Chinese
6
Horizon Survey Research June 2004 Chinese
Residents Environmental Protection
Energy-Saving Habits
Saving water Save electricity Cut down on the
use of disposable living articles Saving coal
Saving natural gas for home use Using
environmental-friendly lotions categorizing
household garbage Saving motor gasoline
88.1
81.7
34.2
33.2
32.4
22.3
19.7
16.7
Often using public means of transportation to
reduce air pollution caused by private cars
9.7
Replacing non-renewable or nocuous energy sources
with clean or renewable energy
8.0
7
Horizon Survey Research June 2004 Private car
owners are more concerned with energy issues,
while those without a car are more concerned
about environmental protection.
Energy shortage awareness
Energy and environmental issues of concern to the
residents
8
Horizon Survey Research June 2004 Urban
residents near factories or plants pay much
attentions to air pollution and noise caused by
manufacturing but less attention to the waste of
water and land resources
9
Horizon Survey Research June 2004 Chinese
residents expect a public hearing mechanism with
high participation will be established for energy
pricing
10
Horizon Survey Research June 2004 Letting
Government Officials hear Public Opinion is the
Main Reason for Advocating Energy Pricing
through Public Hearings
Letting government officials hear public opinion
41.0
Letting the public may communicate and share
information with one another
29.4
Letting the public express their dissatisfaction
with the current pricing mechanism
23.8
Letting government officials conduct public
education
4.4
Others
0.6
Don't know
0.8
11
Privatization of National Oil Companies China in
Comparative Perspective

• RESEARCH QUESTION Chinas energy needs for
  economic development require at least
  semi-privatized oil and gas SOEs that can compete
  with the major multi-national companies to
• Boost domestic production while at the same time
  obtain stable, low-cost supplies of oil and gas
  from overseas
• Attract financial resources from energy sector
  partners and investors in domestic and foreign
  capital markets
• Are Chinas NOCs up to the task?
• RESEARCH PARTNERS
• U.S., Japanese and Chinese Scholars

12
Preliminary Findings I

• PetroChina, Sinopec and CNOOC are competitive
  with their privatizing NOC peers and with some of
  the Multi-National oil and gas companies in many
  measures of operating and financial performance
• The decentralized nature of privatization in
  China has created unique institutional obstacles
  to the future effective semi-privatization of its
  oil and gas SOEs
• The decentralized privatization of the oil and
  gas SOEs blocks the design of comprehensive
  national energy and energy security policies, and
  the creation of effective governmental
  institutions to coordinate them.

13
Preliminary Findings II

• In particular, decentralization and the lack of a
  national privatization program make
  identification and compensation of potential
  stakeholders problematic
• 1. Local government pitted against SOEs and
  central government on costs of privatization,
  including establishment of social welfare system
  for laid-off employees and cleaning up industrial
  pollution from the energy and petrochemical
  sectors
• 2. Communist Partys informal system of
  controlling ownership of SOEs makes
  corporatization, identification and compensation
  necessarily opaque, stunts development of legal
  systems and autonomous regulatory agencies

14
Lifestyles and Attitudes of Chinas Emerging
Middle Class

• RESEARCH QUESTIONS
• With Whom Will Urban Chinese Identify With in the
  Future? Will They Identify with Local, National
  and Transnational Communities? How Will This
  Identification Affect Energy and Environmental
  Policies?
• RESEARCH PARTNERS
• Transnational China Project at BIPP
• Network of Media and Cultural Studies Scholars in
  U.S., Mainland China, Taiwan, Hong Kong,
  Singapore, Japan and Europe

15
Lifestyles and Attitudes of Chinas Emerging
Middle Class

• PRELIMINARY CONCLUSIONS
• Companies, Governments and NGOs are Using
  Advertisements in New Public Spaces to Appeal to
  Urban Chinese to Think of Themselves as Local,
  National and Transnational
• Are Urban Chinese Persuaded by these Appeals, and
  Will This Affect Their Views on Collective
  Solutions to Energy and Environment Problems?

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Shanghai 2003
17
Taipei 2001
18
Shanghai 1999
19
Beijing 2000
20
Shanghai 2003
21
Beijing 2000
22
Shanghai 1998
23
Shanghai 1999
24
Shanghai 1998
25
Shanghai Heng Shan Park 2004
26
Shanghai The Bund 2004
27
??Thank You