Environmental impacts of domestic resource extraction in China

Introduction:The rapid development of economy has led to extensive raw material consumption and relevant environmental damage in China.To analyze environmental impacts and identify materials resulting in these environmental effects via raw material extraction,we combine economy-wide material flow accounting and life-cycle analysis methods to estimate environmental impacts of Chinese domestic extraction(DE)during the period of 1992–2015.The relationship between these increasing environmental impacts and Chinese GDP was also explored by decoupling analysis.Outcomes:Results show that Chinese DE increased by 372%during 1992–2015.The global warming potential,abiotic depletion potential,and respiratory inorganics of Chinese DE increased by 195%,46%,and 408%,respectively.In terms of specific materials,extraction of iron ores,gravel and sand,and coal induced the most environmental impacts.The relationship between environmental impacts and Chinese GDP/DE was characterized by relative decoupling.Conclusion:To minimize the environmental impacts of extraction,we recommend that the Chinese government improve its extraction techniques and reduce excess demand for materials with large extraction such as iron ores,gravel and sand,and coal.We also recommend researching alternative materials for scarce resources like molybdenum,gold,and fluorite.

Why Has China's Current Account Balance Converged after the Global Financial Crisis?

China's current account surplus declined significantly from its peak of nearly 10 percentof GDP in 2007 to less than 1 percent in 2018.The new pattern offered fresh evidencefor our understanding of China's current account dynamics.In this paper,we used flowof funds data to gauge its underlying driving forces.Specifically,by employing indexdecomposition analysis,we decomposed the current account from the perspective ofsavings and investment into three sectors:the household,corporate,and governmentsectors.We found that the decline in China's current account ratio was first driven bycyclical factors,i.e.weak corporate saving growth induced by the economic slump in2009 as well as the following massive corporate investment bolstered by the governmentstimulus plan.However,such cyclical factors quickly subsided,and the subsequentcurrent account balance reduction was later supported by structural factors,i.e.household savings declined enduringly and the Chinese government switched to a moreexpansionary fiscal policy.There are three possible explanations for the structuralmovement:reduced precautionary saving due to higher social security coverage ratio,lower corporate profits as a result of economic slowdown,and a twin deficit due to thegovernment's more relaxed fiscal stance.The new facts,however,were not consistent withother current account theories focusing on long-term aspects of the saving-investmentaccount puzzle,especially those relating to China's special demographic characteristics.