How much real cost has China paid for its economic growth?

Abstract

China’s economic growth has a serious impact on the environment and resources. How much real cost did China pay for its economic growth? This paper estimates the monetary costs of resource depletion, environmental pollution, and ecological degradation. The paper examines the geographic distribution of resource and environmental losses across 31 provinces. The findings allow us to reach the following conclusions. First, the national cost of resource depletion, environmental pollution, and ecological degradation in 2005 was 2.5 trillion RMB. It accounted for 13.5% of China’s gross domestic product (GDP). Secondly, the cost of resource depletion, ecological degradation, and environmental pollution has a different spatial distribution. The cost of resources depletion mainly distributes in the central area, the cost of environmental pollution is in the eastern area, and the cost of ecological degradation lies in the western area. Thirdly, the cost of natural resources depletion is 1,672.5 billion RMB, accounting for 67.8% of the total cost of resource and environment. It indicates that economic development has a high cost of resource depletion.