Social Cost In China Case Study

Social cost includes both the private cost and external cost to the society due to the production or consumption of a good or service. A social benefit is the total benefit to a society including both private benefits and external benefits due to an activity. . China has had a growth rate of about 10% over the past 30 years making China the world’s fastest growing economy. China has become a global manufacturing center. China has also become the world’s largest manufacturing economy and largest export economy in the world. China has the world’s fastest growing consumer market.

The increase in manufacturing has created a huge impact on China’s economy, but some people debate that the social cost outweigh the social benefits.

Although this industrial development has caused many environmental and social issues, it has allowed the Chinese economy to increase , making China one of the biggest super power with the second largest economy. Over the

There has been substantial increase in the demand for natural resources. Increase in industries over the years has caused natural resources from forests to be depleted causing many impacts such as deforestation and flooding. The poorly regulated industrial emissions and waste have caused levels of water and air pollution to increase dramatically. China now burns 47 percent of the world's coal . Due to the industrial developments, China has become the world’s leading contributor to global environment problems such as acid rain, ozone depletion, global climate change and biodiversity loss. Also, China has increased their energy consumption drastically to provide energy for all the factories. This has been causing many environmental problem such as air pollution reading going above the limit of healthy breathable air. Scientist suggest that around 1.4 million deaths occur every year due to air pollution in