Reaching ambitious goals for growth would be a hollow achievement if they were not accompanied by improvements in the physical environment in which people live. Over the past two decades, rapid economic growth, urbanization and industrialization have contributed to a worsening of air and water pollution. Both the human and economic costs of this deterioration have been large. Nearly 200,000 premature deaths each year are associated with high levels of air contamination. Addressing these issues in the most efficient manner will require a combination of regulations and market-based mechanisms.
Climate change is much more complex than local pollution.
Most obviously, it is largely a future problem. As a result there is the inevitable temptation to delay. As a result there is a temptation to free ride. Currently, China is second only to the United States in carbon dioxide emissions from industrial processes. The concern is that per capita emissions in China will grow with further industrialization because of its reliance on coal for energy.