Pollution Reduction and Economic Growth —A Small Town’s Journey to Sustainable Development

Abstract

It’s commonly believed that one can do well by doing good. When applied to business, the concept means that an environmentally friendly and responsible business can also do well in regards to profit. Or, if a state or region devotes resources to improving the environment, the economic growth will be strengthened. This concept echoes the essential meaning of the famous quote by China’s leader, “Clean waters and green mountains mean mountains of gold and silver.” Is this theory true in the real world? We intend to investigate the case of a small rural town from northern China which went from a heavily polluted town with small businesses scattered around, to today’s paradise with clean waters, green parks, and sustainable agro-farms. The town went from a poor rural town with low GDP before the 1990s to boomed economy in early 2000s, when the heavy pollution imposed a threat to the health of local residents. After almost two decades of government intervention, the town has transformed into a clean and sustainable community with public parks and agro-tourism based farms.Our paper intends to take a close look at the transformation process, and describe key factors of success, and identify areas for improvement. We also attempt to provide implications for future research, and recommendations for policy makers.