1 R ICE U NIVERSITY China, Energy & Environment Awareness Presentation Prepared for China & Sustainable Development Environmental & Energy Systems Institute

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RICE

UNIVERSITY China, Energy & Environment

AwarenessPresentation Prepared for

China & Sustainable Development

Environmental & Energy Systems InstituteShell Center for Sustainability

Rice UniversitySeptember 27, 2004

Steven W. Lewis, Ph.D.James A. Baker III

Institute for Public PolicyRICE UNIVERSITY

[email protected]

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RICE

UNIVERSITY

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 China’s Emerging Middle Class

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UNIVERSITY

NE Asia Energy Cooperation Workshops

RESEARCH GOAL: How to Integrate China’s 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

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UNIVERSITY

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:

1. Coordinated Use of Petroleum and Product Stockpiles

2. Coordinated Negotiations with to Major Oil Producers to Eliminate Asian Premium

3. Standardization of Fuel and Fuel Consumption Measures in NE Asia

4. Comparative Studies of Energy and Environment Awareness in China

Horizon Survey Research June 2004:Environment Issues Rank Highly Among Urban Chinese

Rank

1999 2000 2001 2002 2003

1Unemployment（ 21.6%）

Environmental issue（ 49.2%）

Unemployment（ 45.2%）



2Corruption（ 14.7%）


Environmental issue

(41.3%)

Social security(34.5%)


3Economy

development（ 11.1%）

Children education（ 34.7%）


Environmental issue

(29.5%)

Housing reformation

(31.6%)

4Environmental

issue（ 5.6%）

Social security（ 33.4%）

Economic development

(25.8%)

Medicare reformation（ 26.3%）

Environmental issue

(24.3%)

5Crime-control（ 5.4%）

Corruption（ 29.0%）

Housing reformation(25.8%)

Economy reformation

(25.7%)

Economy development

(22.7%)

6Job opportunities

（ 3.6%）Economy development

（ 20.2%）Corruption

(15.4%)Housing reformation

(23.1%)Medicare

reformation（ 21.4%）

7Growth of population（ 3.3%）

Aged problem（ 19.3%）


Children education(20.6%)

Corruption(20.7%)

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

Often using public means of transportation to reduce air pollution caused by private cars

Replacing non-renewable or nocuous energy sources with clean or renewable energy

88.1

81.7

34.2

33.2

32.4

22.3

19.7

16.7

9.7

8.0

9.617

7.5

10.9

82.970

02.1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Private car owners Non-car owners

Weak awareness Medium

Strong awareness Not sure

75.5

74.1

37.8

33.6

25.9

20.9

83.1

75.1

41.7

30.7

22.9

15.8

0% 20% 40% 60% 80% 100%

Addressing urban pollutionsources

Addressing industrial pollutionsources

Addressing global environmentalissues

Developing domestic energyresources

Increasing power supply

Developing international energyresources

Private car owners

Non-car owners

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

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

53

28. 1

44. 1 45

63. 6

23

48. 8

40. 2

0

10

20

30

40

50

60

70

Waste of water andl and resources

noi se caused bycommerce and

manufacturi ng

water pol l uti on causedby manufacturi ng

ai r pol l uti on causedby manufacturi ng

Wi th Adj acent Factori es or Power Pl ants

Wi thout Adj acent Factori es or Power Pl ants

Horizon Survey Research June 2004: Chinese residents expect a public hearing mechanism with high participation will be established for energy pricing

28.4

45.3

19.9

3.4

34.4

29.5 28.2

44.9

46.8

36.5

20.722.5

14.9

3.2

8.2

2.3

0%

10%

20%

30%

40%

50%

Electric power for home use Fuel for private cars Natural gas for home use Coal for home use

Government Public hearing State-owned enterprises Private enterprises or joint ventures

41.0

29.4

23.8

4.4

0.6

0.8

Letting government officials hear public opinion

Letting the public may communicate and share information with one another

Letting the public express their dissatisfaction with the current pricing mechanism

Letting government officials conduct public education

Others

Don't know

Horizon Survey Research June 2004: Letting Government Officials hear

Public Opinion is the Main Reason for Advocating Energy Pricing through

Public Hearings

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Privatization of National Oil Companies; China in Comparative

Perspective

RESEARCH QUESTION: China’s 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 China’s NOCs up to the task? RESEARCH PARTNERS:

U.S., Japanese and Chinese Scholars

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RICE

UNIVERSITYPreliminary 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.

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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 Party’s informal system of controlling ownership of SOEs makes corporatization, identification and compensation necessarily opaque, stunts development of legal systems and autonomous regulatory agencies

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RICE

UNIVERSITY Lifestyles and Attitudes of China’s 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

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RICE

UNIVERSITYLifestyles and Attitudes of

China’s 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

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Taipei 2001

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Shanghai 1999

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Beijing 2000

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Shanghai 2003

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Beijing 2000

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UNIVERSITY Shanghai 1998

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Shanghai Heng Shan Park 2004

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UNIVERSITY Shanghai The Bund 2004

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谢谢

Thank You

Documents

1 R ICE U NIVERSITY China, Energy & Environment Awareness Presentation Prepared for China & Sustainable Development Environmental & Energy Systems Institute