Generic polluting chimney CC0 licensed

The Chinese government knows its country has a pollution problem and is finally going to do something about it. But a crackdown on pollution, at least in the short term, may come with a consequence we didn’t consider: higher prices for the goods we buy in the US including new smartphones, tablets, and laptops.

As Forbes reports, government officials in China have been carrying out widespread inspections of factories in a bid to identify the worst polluters. So far, over 80,000 factories have been found to break the rules on emissions. Fines and even criminal proceedings have been set in motion for some of the worst offenders.

While that sounds like good news for the long term health of China and ultimately everyone on Earth, there is a knock-on effect for the West. The inspections require factories to be shut down while they happen. Offline production lines mean orders aren’t fulfilled, manufacturing is delayed, and shortages occur. And when there’s a shortage we ultimately see prices increase.

It’s too early to say when or even if these price increases will happen and in what sectors. Some production is already being moved to other countries to compensate, but potentially also to avoid the enforcement of environmental regulations. That production could ultimately remain outside of China in countries with less strict regulation.

Longer term, stricter regulation will cause a headache for Chinese factory owners who will have to deal with their emissions in an environmentally-friendly way. In other words, running production lines will incur more costs and those costs will be passed on to customers.

Right now, Chinese citizens pay for the pollution with their health. But ultimately we’re all going to end up paying a bit more for a lack of it. Hopefully you’re all ok with that.

Let’s block ads! (Why?)

Source link

  • test

Load More By elspoka
Load More In TBD

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Check Also