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Low fines let big polluters off hook
By People's Daily |
June 14, 2011, Tuesday
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Print Edition
Print Edition
IN China, corporate costs of environmental pollution are often unbelievably low.
In 2005, a branch factory of China National Petroleum Corporation (CNPC) heavily polluted the Songhuajiang River in Jilin Province, after an explosion caused severe leaks of poisonous substances.
So far, the government has injected 7.84 billion yuan (US$1.2 billion) to clean up the river. In contrast, the Jilin branch of CNPC was fined only 1 million yuan, on top of its donation of 5 million to Jilin Province.
That amounts to nothing but government paying the bill for polluting firms. So trivial was the corporate cost of pollution that no company would bother to learn a lesson.
Similar cases abound. For example, in 2004, the direct cost of pollution of the Tuo River in Sichuan Province hit 300 million yuan, but the polluting firm was fined only 1 million yuan. The low cost of pollution in China contrasts sharply with that in many other countries, where a polluting firm has to pay astronomical fines.
In May this year, China revised its Criminal Law to make it easier to criminalize major polluters. While the revision is commendable, one has reason to doubt if the new law would be implemented to the letter.
In 2005, a branch factory of China National Petroleum Corporation (CNPC) heavily polluted the Songhuajiang River in Jilin Province, after an explosion caused severe leaks of poisonous substances.
So far, the government has injected 7.84 billion yuan (US$1.2 billion) to clean up the river. In contrast, the Jilin branch of CNPC was fined only 1 million yuan, on top of its donation of 5 million to Jilin Province.
That amounts to nothing but government paying the bill for polluting firms. So trivial was the corporate cost of pollution that no company would bother to learn a lesson.
Similar cases abound. For example, in 2004, the direct cost of pollution of the Tuo River in Sichuan Province hit 300 million yuan, but the polluting firm was fined only 1 million yuan. The low cost of pollution in China contrasts sharply with that in many other countries, where a polluting firm has to pay astronomical fines.
In May this year, China revised its Criminal Law to make it easier to criminalize major polluters. While the revision is commendable, one has reason to doubt if the new law would be implemented to the letter.
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