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Energy Strategy for Inner Mongolia Autonomous Region Chapter j 18 355

TABLE 18.1 Targeting of Investment in Environmental Protection in the
11th Five-Year Plan
Billion RBM Billion US$
Urban environmental infrastructure 660 82
Remediate industrial pollution 210 26
Environmental protection for new projects 350 43
Ecological protection 115 14
Nuclear safety 10 1
Environmental monitoring 30 4
Total 1375 170
China Economic Information Network.

Plan. The economic consequences for both growth and environmental “energy
harmony” are expressed in a similar vision and goal in California (Clark and
Sowell, 2001).
The issue, as seen in all countries and expressed later in the discussion, is
that public policy by decision makers must proceed with both financial and
implementation programs that have defined mechanisms. The policies set forth
by the PRC and IMAR governments provide stability for the public sector in
terms of resource allocation, planning, and future development. Additionally,
stability in established public policies encourages private sector partnerships
through commitment of resources (capital, physical, and personnel) and both
debt and equity investments.
Predictions indicate that China will continue to use coal for about two-thirds
of its energy consumption by 2010. If this happens then major upgrades will be
necessary for the coal industry to become the basis for SD of the national
economy. However, as rail service now creates a bottleneck in transporting coal,
new pipelines for liquid and/or gaseous fuels produced near the mine mouth can
avert the need for large investments to expand rail capacity. Fig. 18.2 shows he
portion of world energy consumption used by the PRC.
One obvious problem arises from further and continued competition for
these now globally scarce energy resources. In the United States, for example,
this problem in the petroleum industry has been called “peak oil,” meaning
that there are limits to oil reserves and that production will be “peaking” soon.
By some industry and government estimates, world-side peak petroleum
production will come within the next 5e10 years. This peak can only be
postponed by higher oil prices, as new fields will be more difficult and costly
to develop.