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November 20, 2003

China's Enviro Policy- Smart Innovation

This Salon.com interview with environmental scientists shows how smart the Chinese strategy is in demanding higher fuel standards for cars sold there:

One of the things that's driving it is a desire on the part of the Chinese to acquire technologies from foreign automakers to allow them to accelerate the introduction of more fuel-efficient vehicles.

In the past, when China first started collaborating with foreign manufacturers, including Japanese, European and U.S. ones, they often brought in inferior technologies that were no longer being used in those countries.

One of the things conservatives miss is that regulation can often drive innovation-- you change the rules, you force innovation by companies.

China understands this and is harnessing its regulations to drive innovation in energy use.

The US-- it's using expensive tax breaks to foster almost none.

Posted by Nathan at November 20, 2003 11:09 AM