Building a “Green Economy”: A New Revolution in China?
A “green economy” can be built in China in less than 20 years, argues a new McKinsey report. The new study, “China’s Green Revolution“, offers the most comprehensive quantitative analysis to date of China’s abatement cost curve.
Previous studies of a similar ilk, like the Stern Review, have incorporated social benefits to partially offset the cost of scaling up energy efficient and clean technologies. In contrast, the latest McKinsey report considers only technology-related costs and attaches a figure to the cost of green initiatives in China.
So what is the final damage? While costs are negative for upgrades in some industries, like buildings, due to the savings generated from energy efficiency improvements, a total 1.5-2 trillion yuan (USD 220-295 billion) would have to be spent every year until 2030 in order to reach McKinsey’s alternative scenario.
