22/02/2007 2:24:40 pm
More Capitalism - Less Environmental Impact. The more foreign trade and foreign direct investments in a Chinese region or city, the lower are the emissions of sulphur dioxide (SO2). This interesting conclusion is drawn by Jie He, a Chinese researcher, in two studies.

In the first case, of exports, the reason is likely to be the fact that increased international competition leads to necessary improvements in the industries. In the second case, of investments, the foreign companies are simply more environmentally friendly than the old, state-owned industries. And their mroe labour-intensive production contributes to that.

In the current debate, not least about global warming, there is a tendency to believe that capitalism, companies and trade are the villains. To improve the environment, politicians are inclined to impose restrictions. These studies show the contrary. The environment needs more capitalism and globalisation, not less.

Read the studies here and here. (Thanks, Fabian!)