Diocesan Girls’ School

Liberal Studies Module 6 – Energy technology and Environment

2020 – 2021_Worksheet 1
Teaching Focus:
Theme:
(Topic) Energy Resources and major Problems Associated with the use of
Energy
Non-renewable Energy
Technology
(Skills) Analysis information Multiple perspectives

Name: ____________________________________ ( ) Class: _______ Date: ______________

Key Terms/ Key Concepts
Non- renewable energy Renewable energy Energy shortage
Greenhouse gases Air pollutants Global warming
Biodiversity Modernisation

A. Definition and Classification of Energy Non-renewable energy  energy with

limited supply.
Primary energy  e.g.
Energy: obtained from the Fossil fuel  oil, natural gas, coal
All resources that nature directly and Non-fossil fuel  uranium (nuclear
can provide power their basic forms energy), burning ice (combustible /
remain unchanged. flammable ice)

Renewable energy  energy that

Secondary energy  keeps generating in the nature.
directly or indirectly e.g.
processed from primary Solar power
energy. Wind power
e.g. electricity, petrol, town Hydro-electric power (HEP)
gas Tidal and waves power
Biomass/Biofuel
Geothermal power

B. Major Problems Associated with the use of Non-renewable energy

Source A
Global Primary energy consumption by fuel (1965 – 2035 by projection)

*Renewables include wind, solar, geothermal, biomass, and biofuels.

* toe (Tonne of oil equivalent  1 = 42 gigajoules or 11,630 kilowatt hours)

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Source B
Total energy consumption between developing and developed countries (2005 – 2040 by projection)

*Btu – British thermal units

Source C: Who made global primary energy consumption rise?

In recent decades, some developing countries have strived to increase industrial development in order to
boost their economies, transport, railway, aviation and oil-related industries, which directly increase energy
consumption greatly. With economic growth, people’s standard of living is raised substantially. The demand
for vehicles and household electrical appliances shows an obvious rise. In addition, the population of most
developing countries is huge and keeps growing. The demand for energy climbs without any sign of slowing
down.

a) Refer to Source A, describe the features of global energy consumption from 2015 to 2035 by projection.
Identification on feature Description
Total global primary energy consumption increased from about 13
billion toe in 2015 to nearly 17 billion toe in 2035 by projection.
Global primary energy consumption will increase by around
27.8%.
 84.6% of global primary energy consumption was on
non-renewable energy resources in 2015, and will drop to
76.4% by 2035. Though there will be a decrease in the use
General of non-renewable energy, reliance will continue
features:  11 billion toe out of the approximate total of 13 billion toe
primary energy consumption in 2015 was on coal, oil and
gas (Used 4 billion toe of oil and coal respectively and 3 billion
toe of gas out of the total 13 billion toe of primary energy
consumption in 2015)
 13 billion toe out of the approximate total of 17 billion toe
primary energy consumption in 2035 will be coal, gas and
oil (the use of oil will be 5 out of the 17 billion toe total
consumption, 4 billion toe of gas and coal will be used
respectively out of the approximate total of 17 billion toe
primary energy consumption in 2035)
Will increase from using about 2 billion toe of renewables and
hydro-electric power out of the approximate total of 13 billion toe
primary energy consumption in 2015  TO about 4 billion toe out
Specific of the approximate total of 17 billion toe primary energy
features: consumption in 2035
 Will increase from using half a billion toe of nuclear in 2015 to
approximately 1 billion toe in 2035

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b) Identify the features of total primary energy consumption of developing and developing countries
between 2005 and 2040 shown in Source B.
Identification Description
Total primary energy consumption of developed countries has been, and
will be keeping at around 250 quadrillion Btu per year between 2005 and
2040.

Total primary energy consumption of developing countries will be nearly

doubled by 2040 when compared to that in 2005 from 230 quadrillion Btu
in 2005 to 550 quadrillion Btu in 2040.

Total primary energy consumption of developing countries will increase

from about 47.9% of total world energy use in 2005 to nearly 65% in 2040.

c) With reference to Source C and your own knowledge, explain the importance of energy to
socio-economic development at national level, and to individuals respectively.
Importance Explanation
• building and running social facilities e.g. community centres,
schools, hospitals
Bring improvements to
society

At national • supporting modern agriculture

level • running a factory
Bring improvements • fueling transportation that facilitates trade
to/Support economic • fueling the technologies and services
development

• cooking a meal
• using a washing machine
Bring improvements to • using an air-conditioner
At
quality of life • transporting to different places conveniently
individual
level

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Source D
Increasing Energy Demand

Reasons for increasing energy demand

1. The exponential growth of the world's human population.
2. The amount of energy that each person uses has been increasing. People use much more energy
when compared to the past.
3. More of the developing world becomes industrialized and more energy is needed.

Source E: Limited Reserves

Power plants, industries, buildings and motor vehicles rely heavily on fossil fuels, such as coal, oil and
natural gas. These energy sources are found below the earth's surface, where they were formed over the
course of millions of years from the remains of plants and animals. Unfortunately, human activities have
resulted in the consumption of these scarce natural resources.
With a projected world population of 10 billion by 2050, the global energy demand will bring about the
depletion of the world's fossil fuel reserves. This will tighten energy supplies and result in high prices of
fuels and electricity.
Source: http://www.energyland.emsd.gov.hk/eng/energy/envir_limit.htm

Source F
The future global economy is likely to consume ever more energy, especially with the rising energy demand
of developing countries such as China and India. At the same time, the tremendous risk of climate change
associated with the use of fossil fuels makes supplying this energy increasingly difficult.

Will we run out of energy?

We rely on coal, oil and gas (the fossil fuels) for over 80% of our current energy needs – a situation which
shows little sign of changing over the medium-term without drastic policy changes. On top of this energy
demand is expected to grow by almost half over the next two decades. Understandably this is causing some
fear that our energy resources are starting to run out, with devastating consequences for the global economy
and global quality of life.

How does climate change affect the energy we use?

Emissions of carbon dioxide into the Earth’s atmosphere – primarily as a result of burning fossil fuels for
energy – are thought to be the cause of rising global temperatures. The scientific evidence to support this
assertion has become increasingly compelling in recent years, suggesting a need for urgent and concerted
action by all nations to prevent ecological degradation on a massive scale.

For the first time in history we face an energy crisis not only because of the non-renewable nature of the
energy sources that we are relying on, but also because we are using it in the wrong way.
Source:
http://www.global-economic-symposium.org/knowledgebase/the-global-environment/the-energy-crisis-and-climate-change/proposals/the-energy-cris
is-and-climate-change

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Source G: Environmental problems associated with extraction and consumption of fossil fuels
Environmental problems caused by fossil fuels

Environmental problems caused Environmental problems caused

by exploitation (extraction and by consumption of fossil fuels
transportation of fossil fuels
caused by

EXTRACTION: Removing fossil fuels from the Burning fossil fuels emits a large amount
ground: mining and drilling. Mining is used to of air pollutants and greenhouse gases
extract solid fossil fuels, such as coal, by digging, AIR POLLUTANTS: Nitrogen Oxides
scraping, or otherwise exposing buried resources. (NOx), Carbon Monoxide (CO), Volatile
Drilling methods help extract liquid or gaseous Organic Compounds (VOCs), Particulate
fossil fuels that can be forced to flow to the Matter, Sulfur Dioxide (SO2), Lead,
surface, such as conventional oil and natural gas. Mercury
TRANSPORTATION: Transporting fuel can GREENHOUSE GASES: Carbon dioxide
generate its own pollution, and increase the (CO2), Methane (CH4), Nitrous oxide
potential for catastrophic accidents. (N2O), Fluorinated gases

impacts

Degradation of Water pollution Air pollution Global warming

Earth’s land surfaces

• Underground mines can
collapse or gradually subside
that change the natural
landscape.
• Coal removal sites are left with
poor soil that typically only
supports exotic grasses.
• When oil and gas are extracted,
water that had been trapped in
the geologic formation is
brought to the surface. Such
water can carry with it
naturally-occurring dissolved
solids, heavy metals,
hydrocarbons, and radioactive
materials in concentrations that
make it difficult to dispose of
safely.
• The advent of horizontal drilling
technology, used extensively in
unconventional gas production,
has greatly reduced the surface
footprint of drilling operations by
allowing multiple wells to be
drilled from a single well pad.
However, extensive
infrastructure development is
needed in the first place and
lead to land degradation.
• A large amount of land is
disturbed by the drilling wells,
access roads, processing
facilities, and pipelines
associated with oil and gas
drilling operations.
Environmental problems
• Oil is transported across associated with air pollution:
the ocean in supertankers, 1. Acid rain
and it is moved over land Sulfur oxides and nitrogen
by pipeline, rail, and truck. oxides combine with water
In every case, the risk of to form acid rain. It
oil spills / leaks poses a dissolves heavy metals and
serious environmental minerals in the soil 
threat. nutrient loss  hinders the
• Water can sometimes flow growth of plants and aquatic
through the mine and organisms, damage some
become highly acidic and buildings and historical sites
2. Smog
rich in heavy metals. The
(NOx) - nitric oxide (NO)
contaminated drainage
and nitrogen dioxide (NO2)
water is detrimental to soil
is a product of incomplete
quality, human, plant, and
animal life. combustion of fossil fuel. It
• Mining processes produce is a highly poisonous gas
huge volumes of excess and the principal
rock and soil are typically constituent of
dumped into adjacent photochemical smog.
valleys and streams,
altering their ecosystems
and diverting the natural
flow of streams.
• Mining affecting that
natural flows of surface
and subsurface water, and
bury headwater streams.
• Hydraulic fracturing
Refer to
methods, pump million
gallons of water per
well, and an additional
Source H
15,000-60,000 gallons of
chemicals contaminate the
sea water harming the
marine lives.

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Source H
Effects and disasters brought – Evidence of global warming
When fossil fuels are burned - by industry, in power stations and by vehicles and planes - gases (as
unwanted by-products known as carbon emissions) enter the atmosphere. Carbon dioxide (CO2), in
particular, is given off when fossil fuels, such as oil and coal, are burned. Although these gases have always
been present in the world's atmosphere, their concentration is gradually increasing as more and more fossil
fuels are burned.

Countries that use a lot of fossil fuels to produce energy to power industry, produce electricity and heat
homes, also produce a lot of carbon gasses.

Carbon gases are also greenhouse gases and are believed that the build-up of these greenhouse gases in
the atmosphere acts like a blanket or greenhouse around the planet; heat is trapped inside the Earth's
atmosphere. This is the greenhouse effect, and the resulting increase in global temperatures is called global
warming. Plants and trees need CO2 and use it up. However, if there is too much CO2 in the atmosphere -
due to factories and power stations, combined with a reduction in the number of trees, through deforestation,
there will be a build-up of CO2 in the atmosphere.

Higher temperatures and more heat waves
Global warming may lead to more intense and
frequent heat waves. However, if you live in a
cold area, higher temperatures may be good
to you. The area will become more
comfortable for living. More and better crops
might be grown too.
Change in wildfire frequency and severity
As the climate warms, moisture and
precipitation levels are changing, with wet
areas becoming wetter and dry areas
becoming drier. Higher spring and summer
temperatures and earlier spring snow-melt
typically cause soils to be drier for longer,
increasing the likelihood of drought and a
longer wildfire season. Wildfires occurring
nearly four times more often, burning more
than six times the land area, and lasting
almost five times as long since 1980s.
Example: Unusually large wildfires increased
globally ravaged Alaska and Indonesia last
year. In 2016, Canada, California and Spain
have been devastated by uncontrolled flames,
with Portugal and France as the newest
victims of severe blazes.
Ocean warming, melting glaciers and rising
sea levels
Global warming causes thermal expansion of
water and finally a rise in sea level. Besides,
glaciers and ice caps, especially those in polar
areas, melt quicker, causing a rise in sea level.
In the 20th century, about 15 cm rise in sea
level was estimated.
Change in flood frequency and severity
Global warming may cause an increase in
precipitation worldwide and the distribution
of precipitation may be altered too. Some
places are becoming wetter and stormier.
For example: In the U.K., it is predicted that
winter precipitation will increase for about
15-35% by 2080. River flooding will be more
frequent.
Change in drought
frequency and severity
Global warming changes
the distribution of
precipitation. Some areas
become drier and their
rainfall becomes unreliable.
Bleaching of coral reef
Warmer water may cause a
loss of microscopic algae
which colours and
nourishes living corals.
Bleaching of coral reefs has
already been found in more
than 30 countries of the
world.
More heavy downpours
With warmer climate, increase in precipitation,
especially in the type of heavy downpours, is
expected. In the U.K., heavier precipitation in
winter has caused serious flooding in many
areas of the country.
Spread of diseases
Climate sets a constraint for the spread of many
vector-borne diseases, such as malaria and
dengue fever. Increase in temperature means
there may be changes in the pattern and
intensity of rainfall and humidity. Since most
vector-borne diseases are mainly found in
tropical and subtropical areas, higher
temperature may cause the spread of these
diseases to previously unaffected areas.
Besides, the timing and intensity of disease
outbreaks will be changed.
Changes in ecosystems
Habitats and ecosystems of the world may be
affected by global warming. The original
balance may be upset and all living things will
be affected. Some plants and animals may not
be able to adapt to the new environment
brought by global warming.
Crops and food supply
In some cold regions, global warming may help
extend the margins of cultivation and more
crops can be grown. However, it may also bring
more droughts to some important agricultural
areas in the world now. Crop failure may be
more common and food supply of the world
may be reduced.

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Source I: Health threats due to combustion of fossil fuels
Health effects associated with human exposure to carbon monoxide include headache, nausea,
unconsciousness or even death.

Sulfur dioxide has an annoying odor and it irritates the eyes and respiratory tract. Still, SO2 itself is not highly
dangerous. However, when it is released to the atmosphere, it can react with oxygen in the air to form sulfur
trioxide which irritates the mucous membranes of the respiratory tract. Small amount of which is enough to
cause coughing and choking. Chronic exposure leads to a much greater likelihood of suffering from
bronchitis. Sulfur trioxide can also dissolve readily in rain drops, and fall to the earth as acid rain

Nitrogen dioxide is a noxious gas that can cause inflammation of the lungs and, at high concentrations, even
death.

Particulate matter emissions (soot and fly ash) are a concern because they can contribute to long-term
respiratory problems. Many of these particles are extremely small, of the order of 10 micrometer or less, and
they are thus suspended in the air we breathe. After inhaling them, they get trapped in the very thin air
passages inside the lungs. Over a period of years this reduces the air capacity of the lungs. Reduced air
capacity leads in turn to severe breathing and respiratory problems. Chronic asthma or emphysema can
result, as well as increased general susceptibility to respiratory diseases.

Photochemical smog can cause eye irritation develops upon short-term exposure. Chronic pulmonary
diseases, asthma, bronchitis and even lung cancer may result from longer-term exposure.
Note: Smog is formed when nitrogen oxides and some volatile organic compounds from vehicle exhausts and
industrial waste gases combined together in the presence of strong sunlight.

In light of sources D to I, discuss the political, environmental and socio-economic implications to governments
in view of the energy consumption trends shown in Source A.
Implication Elaboration
Energy production and use pose significant environmental
and public health challenges. Policy approaches must align
energy and environmental issues to ensure that economic
growth, public health and environmental protection are
achieved together.

Energy shortage due to increasing energy consumption and

over reliance on fossil fuels + limited reserves of fossil fuels +
subsequent environmental degradation and health threat due
Political aspect to the use of fossil fuels in both local and global contexts +
lack of energy saving awareness of the public + more
extractions and import and export of fuels  induces a vicious
cycle = unsustainable  that implies a comprehensive policy
(internal and international cooperation) to achieve sustainable
energy development is necessary

Environmental
aspect

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 Continuous reliance and increasing demand on fossil fuels as
sources of energy production + the non-renewable nature of
the energy sources that we are relying on  results in high
price of fuels and electricity that hinders economic
Socio-economic developments
aspect

A potential rise in social

expenditure on medical
and health care (Source
I)

Source J
Fossil fuel reserves globally

Global energy consumption by source

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Source K
The potential for crisis if we run out of energy is very real especially to those rely heavily on fossil fuel. At
expected rates of demand growth we have enough for thirty years supply. Ultimately, the near-unlimited
supply potential of renewable energy sources should ensure that the world does not fall short of its energy
needs.

How secure is our access to energy?

The security of global energy supplies continues to be problematic. Today, oil and gas reserves are in the
hands of a small group of nations, several of which are considered political unstable or have testy
relationships with large consuming countries. Eighty per cent of the world’s proven oil reserves are located in
just three regions: Africa; Russia and the Caspian Basin; and the Persian Gulf. And more than half of the
world’s remaining proven gas reserves exist in just three countries: Russia, Iran, and Qatar.

Concerns over energy security prompt policymakers to seek independence from foreign sources of energy. In
Europe, new coal-fired power stations are back on the political agenda, partly because Russia is no longer
seen as a reliable supplier of gas. In the US, home-grown biofuels have been promoted by successive
administrations as an alternative to Middle Eastern oil imports, despite being more expensive. These
reactions are a natural consequence. The more governments can extract themselves from the dependence
on foreign energy resources, the more secure they feel, and thus most of them should gear up renewable
energy developments. In addition, humans are increasingly influencing the climate and the earth's
temperature by burning fossil fuels which adds enormous amounts of greenhouse gases to those naturally
occurring in the atmosphere, increasing the greenhouse effect and global warming. Many believe the best
thing governments can do with fossil energy is “keep it in the ground.” They claim fossil-fueled civilization is
“unsustainable” and headed for a climate catastrophe.
Source:
http://www.global-economic-symposium.org/knowledgebase/the-global-environment/the-energy-crisis-and-climate-change/proposals/the-energy-cris
is-and-climate-change

Source L:
A carbon footprint is the measure of the environmental impact of a particular
individual or organization's lifestyle or operation, measured in units of carbon
dioxide.
A carbon footprint is composed of two parts, a primary and secondary footprint.
The primary footprint is the sum of the direct carbon dioxide emissions of burning
of fossil fuels, like domestic energy consumption by furnaces and waters
heaters, and transportation, like automobiles and airplane travel. The secondary
footprint is the sum of indirect emissions associated with the manufacture and
breakdown of all products, services and food an individual or business
consumes.

The largest human source of carbon dioxide emissions is from the combustion of fossil fuels. Burning these
fuels releases energy which is most commonly turned into heat, electricity or power for transportation. Some
examples of where they are used are in power plants, cars, planes and industrial facilities

The transition from fossil fuel energy generation to new renewable energy can directly reduce atmospheric
carbon emissions. Wind, solar, biomass and other renewable energy technologies continued to grow, and
they have been an important driving force in reducing greenhouse gas emissions. However, renewable
energy still remains unused is most of the countries. Most of the energy comes from non-renewable sources
like coal. It still remains the top choice to produce energy. Unless we give renewable energy a serious
thought, the problem of energy crisis cannot be solved.

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Source M: Law of the nature
• In the nature, the weak will naturally be eliminated while the strong
will become even stronger.
• Example: In the Wilderness of Australia, rabbits reproduce at a rapid
Natural selection and survival
rate because of the absence of natural enemies and abundant food
of the fittest
sources in rich grasslands. They damage the presence of
grasslands, which cause the loss of water and soil, and thus,
upsetting the ecological balance.
Limited carrying capacity of The carrying capacity of the nature can be understood by bucket
the nature analogy. The capacity of a bucket is limited. If we keep pouring water
[The maximum population size into the bucket, it will eventually be filled up and the water would
of species (including humans, overflow. The water from the tap represents the number of animals and
animals and plants) that the plants born in a place during the year. The overflowing water represents
ecosystem or a specific area of the number of animals and plants dying each year because they are
environment can sustain] beyond the area’s carrying capacity.
The ecosystem has considerable self-recovery functions against
external intervention. For example, self-purification capacity can
alleviate the level of pollution in the ecosystem and allow it to resume its
normal state. However, such self-purification capacity is limited. If the
Limited self-regulatory / pollutants exceed the limit of the ecosystem’s self-purification capacity,
self-recovery capacity of they will cause pollution in the ecological environment. For excessive
ecosystem pollution from fossil fuels threatens to destroy the gifts, such as a
functioning climate, healthy air to breathe, regular seasons and living
oceans, bestowed on human by the nature. The current rate of climate
change brought by the use of fossil fuels cannot be sustained, and the
earth’s fine equilibrium may soon be lost.

d) ‘Countries should develop renewable energy more actively.’ In what way(s) Sources J, K, L and M
support this statement?
Platform How the sources support this view
All the four sources support the view that countries should develop renewable energy
more actively as a panacea to the potential energy crisis. Source J supports this view by
statistical evidences to show the urgent need to develop renewable energy in view of the
challenge of energy shortage brought by decreasing non-renewable energy reserves but
increasing demands on fossil fuels. This implies a necessary paradigm shift from
reliance on fossil fuels which is non-renewable in nature to other sustainable source of
energy that is renewables as they are abundant in the nature and naturally replenished.
Source K supports this view by showing the cause-and-effect relationship between over
reliance on fossil fuel and energy shortage with a suggestion to ‘gear up renewable
energy developments’. The source points out clearly that energy shortage is expected to
be faced by countries which are rely heavily on fossil fuel, and especially to the importing
countries. Fossil fuels as stated in the source, are declining in reserve and largely in the
hands of small groups of nations. For energy security, it is advised that ‘the near-unlimited
supply potential of renewable energy sources should ensure that the world does not fall
short of its energy needs’, and if the governments want to extract themselves from
dependence on foreign resources that they ‘should gear up renewable energy
developments’.
Source L shows clearly that the world’s demands on the limited natural resources like
gas, oil and coal that are used to power industrial society are diminishing as the demand
rises. It is also reminded that renewable energy seems to be the only possible way out to
potential energy crisis as ‘renewable energy still remains unused in most of the
countries. Most of the energy comes from non-renewable sources like coal. It still
remains the top choice to produce energy. Unless we give renewable energy a serious
thought, the problem of energy crisis cannot be solved’.
Source M also reflects clearly the relationship between the use of non-renewable energy
sources and the energy crisis. Non-renewable energy sources are natural resources that
are in limited supply. While they do occur naturally, it can take hundreds of thousands of
years to replenish the stores. Countries are thus have to work actively to make the use
of renewable resources a priority, and to lessen the irresponsible use of natural supplies
through increased conservation.

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Urgency of
needs to combat
climate change
due to the use of
non-renewable
energy

Case Study 1 – Air pollution in China and legislation

Source A

Source B: An integrated report adapted from various overseas newspapers

Two-thirds of China’s energy supply relies on coal. The cost is incurred at the expense of the environment.
China’s air pollutant and greenhouse emissions have remained high. Among the ten cities with the worst air
pollution in the world, seven of them are in China. Experts say that the harmful smog costs China extra
medical expenses amounting to billions of USD. It also results in a decrease in labour productivity.
Although China plans to increase the use of renewable energy, its ever-increasing demand for electricity
implies that coal consumption will remain high.

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a) With reference to Sources A and B, explain the relationship between China’s economic development and
its energy use.
China’s economy continues to grow  China’s energy consumption level increased
Relationship continuously (positive relationship)

Increasing GDP (from 8 Trillion in 2000 to 60 Trillion dollar in 2040 by projection)  shows
the continuous growth (higher economic development)
China’s energy consumption level also increased continuously (from less than 1000 Mtoe in
Evidence + 2000 to over 3000 Mtoe in 2017, and the demand will increase further to over 4000 Mtoe by
explanation the year

2040)

Energy plays an important role on economic development  rapid industrial development

in China since R&O required a large amount of energy resources  economic return  ↑
spending power  improve life as people afford a more luxurious life  ↑ use of private
vehicles + electronic appliances  increase the use of energy

Source C: China energy consumption by fuel (1965 – 2035 by projection)

Source D: Peering into China’s thick haze of air pollution

As 2016 gave way to 2017, residents of the central and eastern part of China such as Beijing, Tianjin, Hefei,
Wuhan and Chengdu, and many other northern Chinese cities suffered through the longest stretch of stifling
air pollution ever recorded in the country. They choked through eight continuous days of thick, light-blocking
haze, starting Dec. 30, 2016. This stretch of bad air began only a week after people in 70 northern Chinese
cities were enveloped by similar days of haze composed of high concentrations of particles less than 2.5 μm
in diameter (PM2.5).

The air quality in many cities reached the worst level, which means that people’s health will be seriously
affected and people are not advised to stay outdoors. In Beijing, the visibility in some regions was less than
10 metres led to serious traffic congestion and closure of highways.

Haze is the air pollution phenomenon that has seriously affected Chinese cities in recent years. The major
kind of particle that cause haze is PM2.5 (suspended particles with a diameter less than 2.5 mm in the
atmosphere). Coal burning for heat, cooking, and electricity generation, vehicle emissions and airborne
dusts are widely considered the main sources of both PM2.5 and other pollutants.

12
Source E: Panasonic introduces ‘pollution subsidy’ to foreign staff in China
Japanese transnational corporation Panasonic announced that it would issue a ‘pollution subsidy’ for foreign
staff in China as a compensation for the harmful effects of air pollution. The amount of the subsidy will be
based on the PM2.5 air quality index in selected mainland cities. Panasonic is the first foreign company in
China to admit that the health of its staff is endangered by pollution. According to the Panasonic
spokesperson, it is the firm’s standard practice to subsidise Japanese staff working in other countries if
external indicators show that their living environment is not at a satisfactory level.

Air pollution has become the major reason for the refusal of foreign professionals to work in China. Foreign
workers in Beijing are also becoming much less willing to tolerate the toxic air. That was reflected in an annual
survey released on March 19, 2014 by the American Chamber of Commerce in China. Almost half of the 365
companies in the survey, most of them in the Beijing area, said they had problems recruiting or retaining
senior executives because of the poor air. That figure was only 19 percent in the chamber’s 2008 survey.

The World Health Organisation announced that air pollution contributed to 7 million deaths worldwide in 2012.
More than one-third of those occurred in fast-developing nations in Asia, including China and India. In both
those countries, nearly the entire population is exposed to fine particles in the air known as PM 2.5, which can
penetrate deep into the lungs and enter the bloodstream, researchers reported on Wednesday in an article
posted on Scientific American’s website. They wrote that a recent global environmental index showed that
China and India ranked worst in terms of populations affected by poor air.

b) Referring to Source D, identify and explain the environmental problem faced by Chinese cities.
Environmental problem Explanation
Air pollution Evidence: Many cities in the central and
eastern part of China are suffering from
haze + the air quality in many cities reached
the worst level  shows that air pollution is
very serious in China.
c) According to the above sources and your own knowledge, explain the negative impacts of air
pollution on people’s quality of life and economic development in China.
Air pollutant PM 2.5  can penetrate deep into the
lungs and enter the bloodstream  causes respiratory
diseases  harms people’s health  people may have
Quality of life
to spend more on receiving medical services ↓
material life
↑ medical cost and expenditure on social welfare 
government has less money to spend on other social
facilities and welfare
Air pollution has become the major reason for the
refusal of foreign professional to work in China 
deters overseas talents and investors + air pollution
Economic
development causes health impact  decrease labour productivity
slow down economic development
Many tourists are deciding not to visit China because of
the reports of pollution  damage tourism industry

13
Source F: Article Extract
Starting from January 1, 2018, Chinese enterprises which emit pollutants shall be subject to the Environmental
Protection Tax (hereby referred to as “EPT”), a new tax prescribed by the Environmental Protection Tax Law
(hereby referred to as the “EPT Law”). As China’s fifth tax law, this new EPT Law is expected to have profound
impact on environmental protection affairs of China and relevant legal obligations for the Chinese enterprises.

Under EPT Law, there include four categories of taxable pollutants, namely,
1. air pollutants,
2. water pollutants,
3. solid waste and
4. noise.

EPT adopts a tax rate range whose bottom lines parallel with the current pollutant discharge fee (PDF) rates (i.e.
1.2 RMB/unit for air pollution and 1.4 RMB/unit for water pollution) but whose top lines are ten times the current
PDF rates. For solid waste and noise, the tax rates remain unchanged compared with the current PDF rates.
The EPT Law grants provincial-level governments the discretionary power to determine the tax rates for air and
water pollutants within the above range, taking into account their specific environmental capacities, status quo of
pollution and local economic, social and ecological objectives.

While carbon dioxide (CO2) has been discussed during the legislative procedure, it is finally excluded from the
scope of EPT Law. This implies that coal will remain a competitive energy source and combustion
engine vehicles a popular method of transportation. This will surely limit the impact the law has on
the mitigation of air pollution in the country and in particular the smog issue in urban environments.

Five types of taxable pollutants are temporarily exempt from EPT:

a) Pollutants discharged from agricultural production (excluding large-scale farming);
b) Pollutants discharged from motor vehicles, railway locomotives, off-road mobile machinery, ships, aircrafts and
other mobile sources of pollution;
c) Pollutants discharged from centralized urban sewage and household waste treatment facilities in conformity
with national or local emission standards;
d) Solid wastes comprehensively utilized by taxpayers in compliance with national or local emission standards;
and
e) Other circumstances approved by the State Council.

Comments on the Law

Although the application scope and rates of EPT are similar to those stipulated in the current PDF regulations,
EPB is not a simple copy of the existing PDF system.

One of the main purposes of the new EPT Law is to overcome the deficiencies of current PDF system by limiting
the discretionary power of local governments in terms of collection and to improve the law enforcement. As to
whether the pollutant emission costs for enterprises will increase upon the implementation of the EPT Law, it has
to be analyzed depending on each taxpayer’s circumstances, including the current local PDF rates, the favorable
treatment(s) that taxpayer currently enjoys, and the pollutant emission status of the enterprises.

Although the EPT Law sets a range of tax rates for air and water pollutants with an upper limit that is ten times the
current minimum PDF rates, this upper limit is not significantly high considering that certain provinces and cities
have already adopted PDF rates which multiple the current minimum PDF rate (for example, Beijing has
increased the rates to eight to nine times the current minimum PDF rates and Shanghai has increased the rates
up to six times).

Although stringent enforcement is expected for tax collection under EPT law compared to PDF system, the EPT
Law provides a new preferential treatment, i.e. taxpayers may receive a 25% reduction if they can reduce the
concentration level of air or water pollutants to 30% below the stipulated standard and the qualified enterprises
may even expect a reduction in their costs.

Finally, there is still a plenty of uncertainty at this stage. As it is for the first time a tax law establishes a
collaborative and information sharing system between the tax authorities and environmental protection
authorities, detailed implementation rules are yet to be stipulated. Also, the possible overlapping between punitive
measures under the Environmental Protection Law and tax laws may also needs to be solved by the future
legislation.
Source: http://www.ds-avocats.com/mailing/China%20EN.pdf

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Do you think the Environmental Protection Tax Law shown in Source F is effectiveness in controlling air
pollution in China?
Define effectiveness:

Environmental Protection Tax Law as a deterrent to discourage emission through financial

disincentive  when pollutions become taxable that it becomes part of the production cost of
enterprises  shift to low emission production mode in order to sustain the goal of profit
making  change the ‘traditional’ manufacturing mode (high energy consumption and
polluting)  to a more environmentally friendly/ high-tech production mode

In what
way(s) it is Common pollutants like sulphur dioxide and chemical oxygen demand (CDO) are taxable 
effective? reduce the pollutants in the air

Effectiveness may be questionable if the amount of tax can be off-set by revenue and lower
than the cost of a paradigm shift from the existing production mode to a more environmentally
friendly/ high-tech production mode.

In what Though carbon dioxide is not an air pollutant but heightened levels of carbon dioxide raise
way(s) it is atmospheric temperatures and water vapour content, in turn increasing ozone and particle
ineffective? concentrations. Higher carbon dioxide levels and the associated increases in water vapour
and temperature – can enhance the stability of particles, raise biogenic particle mass and
enable particles to interact with airborne chemicals, increasing their toxicity  induces air
pollution  is exempted

The pollution tax rates are decided at the provincial level, although pertinent since each
province is subject to different socioeconomic conditions, could result in the migration of
polluting agents to the more tax friendly regions. Regions with large manufacturing bases
may set their tax rates lower to retain the fiscal revenue.

15
Case study 2 – The Development of Energy Resources in China

Source A: China electricity generation by fuel source, 2012 – 40

Source B: China total energy production and consumption

Source C: Air pollution problems related to the consumption of energy in China

Air Pollution Causes Effects
Mainly due to the smoke, particulates, Villagers in provinces like Guizhou, Hunan
carbon monoxide and other poisonous still burn coal for cooking  may lead to
Indoor gases produced by burning low quality health problems e.g. respiratory track
coal. diseases and lung diseases.
Mainly due to the particulates and other Shanxi, a province which boosts its
Local polluting gases emitted by vehicles and coalmining industry, has the poorest air
factories. quality and one of its cities, Linfen, is
Mainly due to the carbon dioxide emitted regarded as the most air polluted city in the
Regional by electricity generation plants. world.
Mainly referring to the global warming May lead to acid rain which affects farming
problem. activities and corrodes buildings.
Global China is one of the biggest carbon dioxide Global warming may also lead to problems
emitters and energy consumers in the like rise in sea level and spread of
world. diseases.

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Source D: Water resources and coal production
In China, coal is found in the more arid areas, which adds to the strain put onto water resources as a result of an
over-dependence on coal.

Total coal
production in China 3.85 billion tonnes (3.68 million
by the end of 2019: tonnes in 2018)

Source E: Plans, policies and laws of the Central Government in response to the threat brought by the use of
fossil fuels

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3 Key Trends of China’s response to energy issues
• Rebalancing the Economy: China’s leaders clearly intend to shift the impetus of the economy away from
investment in heavy industry and toward consumer spending, services (such as retail businesses),
innovation, and more innovative and efficient manufacturing.
• Limiting Coal: After years of steep growth in coal consumption, regional coal and carbon limits and
new-coal-plant bans have been followed by a leveling off of coal use in 2014 and reduced output in heavy
industries like steel (down 2 percent last year) and cement (down 6 percent). A continued shift away from
these energy-intensive industries would weaken a major driver of air pollution and greenhouse gas
emission.
• Non-Fossil Energy: China is the world leader in renewable energy, breaking records last year for
installation of wind (32 gigawatts last year, 129 total) and solar power capacity (18 gigawatts last year, 43
total), and clean energy investment ($111 billion, nearly double U.S. investment).

Source F: China’s potential in developing renewable energy and distribution

According to the the International Renewable Energy Agency (IRENA) report in 2019, hina has taken a lead
in renewable energy and is now the world’s largest producer, exporter and installer of solar panels, wind
turbines, batteries and electric vehicles. China also has a clear lead in terms of the underlying technology,
with well over 150,000 renewable energy patents as of 2016, 29% of the global total. The next closest country
is the U.S., which had a little over 100,000 patents, with Japan and the E.U. having closer to 75,000 patents
each.
Renewable energy Potential amount that can be acquired Locations
annually (million tonnes of standard coal equivalent)
Solar power 4,800 Qinghai, Xinjiang, Xizang
Wind power 1,700 Nei Mongol, Xinjiang, Xizang
Biomass power 700 Henan, Shandong, Sichuan
Hydroelectricity 740 Sichuan, Xizang, Yunnan

Source G: Here’s How Much Money China Is Throwing at Renewable Energy (2017)
China will plow 2.5 trillion yuan ($361 billion) into renewable power generation by 2020, the country's energy
agency said, as the world's largest energy market continues to shift away from dirty coal power towards
cleaner fuels. The investment will create over 13 million jobs in the sector, the National Energy Administration
(NEA) said in a blueprint document that lays out its plan to develop the nation's energy sector during the
five-year 2016 to 2020 period. The announcement comes only days after Beijing, the Chinese capital, and
other cities in China's industrial north-east were again engulfed in hazardous smog, caused largely by
coal-fired power generation.
Such ambitions have become more realistic as the cost of building large-scale solar plants has dropped by as
much as 40 percent since 2010. China became the world's top solar generator in 2016. The government may
even exceed its targets because there are more investment opportunities in the sector as costs go down, said
Steven Han, renewable analyst with securities firm Shenyin Wanguo. According to the NEA, this will bring the
total number of people employed in the renewable energy sector to 13 million by 2020. Illustrating the
enormity of the challenge, the NEA repeated that renewables will still only account for just 15 percent of
overall energy consumption by 2020. More than half of the nation's installed power capacity will still be fueled
by coal at the end of the same period.
The United Nations Environment Programme (UNEP) executive director noted that renewables are
becoming ever more central to low-carbon lifestyles, and proving especially valuable in societies where
reliable energy can offer “profound” improvements in quality of life, economic development and
environmental sustainability. Latin America could save up to 10% in energy consumption by switching to
cleaner technologies, saving $350bn in energy bills annually and reducing global CO₂ emissions by 1.25bn
tonnes per year.The report said this fast-rising demand in emerging economies, particularly China’s dash for
wind and solar, are among the factors driving this shift in investment towards developing nations and away
from advanced economies.
While countries like India, South Africa, Mexico and Chile all saw significant increases in investment, with the
latter three seeing 329%, 105% and 151% spikes respectively, investment in Europe was down 21% at
$48.8bn, the continent’s lowest figure for nine years despite record investments in offshore wind projects. The
falling cost of renewables is also a factor in their rise across the globe. Worldwide, clean energy sources
added 134 gigawatts of capacity last year, compared to 106GW in 2014 and 87GW in 2013.

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a) With reference to Sources B to G, identify and explain the roles played by the Central Government in the
development of renewable energy.
Roles played by the Evidence
government
- Issued the Medium and Long-Term Development Plan for Renewable Energy,
which proposed the target for renewable energy development
- Proposed to actively develop industries including renewable energy
Policy-maker and law development and production of cars using new sources of energy.
- Issued and carried out the Renewable Energy Law, including preferential
enforcer
policies on taxation and investment of development related to renewable
energy and the system of subsidy on renewable energy-powered electricity
prices.
- Formulate and carry out tax discounts and financial aid for industries such as
new energy and production of cars driven by these new energy sources.
Resources allocator - Through large state-won enterprises such as the State Grid Corporation of
china, the state directly invested in renewable energy.
- It set up a development fund for renewable energy and conducted relevant
scientific research and resource exploration.
-

Source H: Sustainable development

Sustainable development can be defined as development that meets the needs of the present without
compromising the ability of the future generations to meet their own needs  to safeguard
intergeneration equity  Each generation should have the equal right to enjoy and access to a conserved
diversity of the natural and cultural resource base, economic rights and opportunities, social provisions
passed on from the previous generations and are entitled to quality of life comparable to that enjoyed by
previous generations.


So to achieve true sustainability we need to balance economic, social and environmental sustainability
factors (THREE PILLARS of sustainability) in equal harmony. These may be defined as:

Environmental Sustainability: Environmental sustainability means that we are living within the means of
our natural resources. To live in true environmental sustainability we need to ensure that we are consuming
our natural resources, such as materials, energy fuels, land, water...etc, at a sustainable rate and to conserve
them as far as possible. Some resources are more abundant than others and therefore we need to consider
material scarcity, and the damage to environment from extraction of these materials. Environmental
sustainability should not be confused with full sustainability, which also need to balance economic and social
factors.

Economic Sustainability: Economic sustainability requires that a country uses its resources (natural
resources, finance and human) efficiently and responsibly so that it can operate in a sustainable manner to
consistently produce an operational profit. Without an operational profit a business cannot sustain its
activities. Without acting responsibly and using its resources efficiently a company will not be able to sustain
its activities in the long term.

Social Sustainability: Social sustainability is the ability of society, or any social system, to persistently
achieve a good social well-being. Social sustainability considers how individuals, communities and societies
live with each other, and societal provisions and expectations for individual autonomy and realization of
personal potential, participation in governance and rule making, citizenship and service to others, justice, the

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propagation of knowledge, and resource distributions that affect the ability of that society to flourish over
time. Social sustainability occurs when the formal and informal processes; systems; structures; and
relationships actively support the capacity of current and future generations to create healthy and livable
communities. Socially sustainable communities are equitable, diverse, connected and provide a good quality
of life.

Only through balancing economic, social and environmental development can we achieve TRUE
sustainability.
Social + Economic + Social Sustainability = sustainable

If we only achieve two out of three pillars then we end up with:

Social + Economic Sustainability = Equitable

Social + Environmental Sustainability = Bearable
Economic + Environmental Sustainability = Viable

b) In light of Sources A to H and your own knowledge, account for the trend of renewable energy
development in China as shown in Source A.
Factor Elaboration
To ensure national security
• China cannot produce all energy on its own but still
have to rely on imports (Source B)  however, in
views of the global increasing demand on energy +
energy sources are vulnerable to political
instabilities, trade disputes, embargoes, and other
Security
needs
disruptions  a trivial fraction in global political
could have significant effect on stability of energy
source supply  a need to extract China from
reliance on foreign supply  reduce supply
disruption  open up its own renewable sources of
energy  brings critical benefits to national
security apparatus.
To safeguard public health (Sources C, G)
• Reliance on fossil fuels as key source of energy
production results in numerous public health
threats lik
•
Public health
needs • e respiratory dieses and cancers that not only lower
productivity but also direct and indirectly adding
pressure on the public expenditure on the medical
and health care  developing renewable energy 
emits less air pollutants and greenhouse gas to
alleviate the public health threat.

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 To maintain economic development
• Energy is crucial to fuel economic developments in China  developing renewable
energy locally  provide alternative sources of energy to sustain economic
developments instead of relying on non-renewable sources

To create jobs and investment opportunities (Source G)

• Most renewable energy investments are spent on materials and workmanship to build
Economic and maintain the facilities  create jobs
development • With huge demand and population  profitable investment opportunities attract local
and overseas investment opportunities  means energy dollars stay home to create
jobs and fuel local economies, rather than going overseas, while attract influx of foreign
currencies through investments

To reduce price volatility

• Price of imported energy source is subject to stabilities in the exporting countries, the
global politics and the exchange rate  producing renewable energy locally can release
China from such certainties
To alleviate the environmental problems brought by over reliance on coal (Source D, F, G)
• Renewable energy is cleaner as compare to the use of fossil fuel in power generation as
it emits very little/ no air pollutants and greenhouse gases  burning of coal for
electricity as one of the key sources of air pollutant and greenhouse gas  developing
renewable energy is to alleviate the air pollution in China

Environmental To preserve water resources

concern • In China, coal is found in the more arid areas, which adds to the strain put onto water
resources as a result of an over-dependence on coal  developing renewable energy
helps
•
•
•
•
• alleviating the tension on water resources (for human consumption VS coal mining and
washing)
Conclusion: For sustainable development
Renewable energy development in China helps addressing the present needs on energy, clean environment and
economic developments and will not jeopardise such needs of the future generations.

Supplies of such energy resources as fossil fuels (coal, oil, and natural gas) and uranium are generally acknowledged
to be finite; other energy sources such as sunlight, wind and falling water are generally considered renewable and
therefore sustainable over the relatively long term  stabilize the supply for increasing and future energy demand in
China.

Historically, especially since the reform and opening up, China’s economic development has been strongly correlated
with increasing energy use and growth of GHG emissions + Anticipated energy demand and consequent
environmental impacts (accident rain, air pollution and the greenhouse effect) are expected to get worse  renewable
energy can help decouple that correlation  attain environmental equitability

Generating electricity from renewable energy rather than fossil fuels offers significant public health benefits. The air
and water pollution emitted by coal and natural gas plants is linked to breathing problems, neurological damage, heart
attacks, and cancer. Replacing fossil fuels with renewable energy has been found to reduce premature mortality and
lost workdays, and it reduces overall healthcare costs  that is conducive to socio-economic equitability

In addition, wind and solar energy require essentially no water to operate and thus do not pollutources or strain supply
by com

peting with agriculture, drinking water systems, or other important water needs  that is conducive to bearable
socio-environmental development

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