Report underestimates pollution's true cost

A government report released Thursday estimated that environmental damage cost the equivalent of 3% of economic output in 2004, but officials and analysts say the real price is much higher, the South China Morning Post reported. The report, which was issued by the National Bureau of Statistics (NBS) and the State Environmental Protection Administration (SEPA), also said it would cost China about US$136 billion, to clean up the deteriorating environment. This is equal to about 7% of gross domestic product in 2004, much higher than the 1.18% of GDP invested in environmental cleanups between 2001 and last year. The report, the first of its kind on the mainland, took two years to compile and examined 42 industries. But Wang Jinnan, chief engineer at the Chinese Academy of Environmental Planning and co-ordinator of the report, admitted the conclusions heavily underestimate the actual situation. The latest five-year economic plan, released this year, has a focus on "balanced development", energy savings and environmental awareness.