BIZCHINA> Review & Analysis
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BIZCHINA> Review & Analysis
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Fully price resources
(China Daily)
Updated: 2006-11-30 10:58 With the introduction of fees for mining and exploitation, coal mine developers have to think twice before rushing to pursue maximum output. In a sense, the extra costs will act to check unsafe and wasteful mining activities. Moreover, by forcing them to shoulder the cost of exploitation and environmental protection, the government sends a clear signal to the market that days of cheap resources are numbered. All enterprises should improve the efficiency of their use of energy and resources as soon as possible. Though China has attached great importance to the improvement of its energy efficiency, domestic enterprises have, unfortunately, moved very slowly to reduce their dependence on the massive consumption of energy and resources. Policy-makers are understandably cautious about the inflationary pressure drastic price hikes in energy and resource products could exert on the national economy. However, in absence of a pricing system that can adequately reflect the full cost of energy and resources, it is hard for domestic enterprises to improve the efficiency of their use of energy and resources at the expense of their short-term profits. (For more biz stories, please visit Industries)
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