Section C Basic Features of Conservation-oriented Economy

1 The Entities of Conservation-oriented Economy

Enterprise is the main subject in the construction of conservation-oriented society. Since enterprises are economic cells of the society, they have the most consumption of social resources. The condition of saving by enterprises determines whether COS goes successfully. Both state-owned enterprises and private enterprises should give priority to conservation in their production process. Only in this way, can we increase productivity, lower the cost and gain more benefits.

Of course, it does not mean that agencies, schools, troops and individuals are not important as consumers. They have great potential in saving energy and water and they should also be contributory in building a conservation-oriented society.

Then, how can an enterprise become a CO-enterprise. The author considers that technical progress, industrial modification and industry chain expansion can make enterprise a component of social division of labor and circular economy for realizing rational utilization and resource recycling.

Circular economy is a new concept proposed by Western economists recently. It's similar to our “comprehensive utilization” and “make waste profitable” for their common point, i.e., resource-centered and with peripheral expansion. However, the theory of circular economy is richer and more scientific in its content. It changes the traditional one-way linear flow into a recycle bidirectional flow, which is a reaction-type process characterized with “resource-product-renewable resource”. Thus, the essence of circular economy is ecological economy and green economy. Developing circular economy supports the sustainable development of the national economy. It is of great importance that every enterprise finds its position in the process.

CO-government is also an entity of COS construction. In the COE mode, the macro regulation and micro restriction of government aim to correct mistakes of market for avoiding waste.

Under the market economy system, the configuration of social resources is market-centered. The market is like an abrasive wheel on which the economic activities drift around. This is one of its differences from the planned economy. Practices have proved that a market-centered configuration would save more resources, it is more flexible and rational and it could promote production efficiency. Attribute to the promotion of individual positivity and reduction of waste by reform to market economy, China has achieved a rapid development. However, the market is not omnipotent as it goes out of order sometimes. For modifying the malfunction, the government regulation and control are so necessary. There are also different results after correct and incorrect control by the government. Correct control shall realize maximum conservation. Otherwise, more damage and waste will be generated.

2 The Cornerstone of Conservation-oriented Economy

Conservation-oriented system of national economy is the cornerstone of COE. The system contains industry, agriculture, transportation, construction and service with conservation. Under this system, enterprises should promote their efficiency and output and make products with low consumption and high added value even function substitution or recyclable product.

2.1 Establishment of Conservation-oriented Industrial Structure

The CO industrial structure contains industrial structure which is efficient, time saving, energy saving and raw material saving, constructive structure which is regular scientific, design rational, materials saving and quality assured, agriculture structure which is land saving, time saving and energy saving and transportation structure which is time saving and efficient.

Resource saving is the key target of industrial optimization. The industries with low consumption, low pollution and new technology should be encouraged while government promotes industries with high consumption to enhance their technology by updating from backward process and to strengthen management, especially traditional industries like metallurgy, chemical engineering and building materials shall be the key industries to be reformed and enhanced. At the same time, increasing technology level and added value of products shall be implemented by encouraging high-tech industries. Also, we should vigorously develop equipment manufacture especially grand industries of technical equipment manufacture through converting their industrial structure towards lower consumption and high output. CO structures of industries and consuming are being developed progressively while the utilization factor is being raised. Then, the tension between supply and demand of resources will be relieved, which helps to make a more substantial foundation for economic development.

2.1.1 Establishment of CO Agricultural Structure Based on Exploitation and Protection of Land and Water

Protect cultivated land. Introduce the system of land occupation permit and compensated use of land. By raising land price, occupation is being restricted. Implement comprehensive treatment to avoid erosion of water and soil. Farmland protection is being established and practiced. Reserving resources and reclamation of lands should be concerned in order to ensure the stability of acreage.

Enhance the application of agricultural technology. Make full use of seasonal resources like light and heat. Exert comprehensive efficiency of land space in the eco-system. Water saving agriculture and dry farming are valuable while sprinkling irrigation, drip irrigation and micro irrigation are developed. In dry areas, collecting water, drought-tolerant species and plastic film mulching cultivation are very important. We should properly promote eco-agriculture and water saving agriculture for achieving the most economic benefit by using the least resources.

2.1.2 Establishing CO Industry System Focusing on Energy and Materials Saving

China's industry is transforming towards two directions while most part of it is still in the traditional developing mode characterized with high consumption of resources and energy. As for energy, the current consumption per person is low, but the total consumption is high and the underutilization is low. Problems caused by burning fossil fuels account for a large proportion of the atmospheric pollution. In the sustaining utilization of energy, both exploitation and conservation should be concerned. We should center on electric power and take coal as the foundation and vigorously develop hydropower. Thermal power, hydroelectricity and nuclear power should be developed simultaneously. Petroleum and natural gas are also important energy resources. Cogeneration of heat and power, recuperation of waste heat and conservation of energy should be encouraged. In the aspect of rural utilization of power, we should promote methane, solar power, wind power, subterranean heat and energy-efficient cookers. Energy-efficient technology shall be popularized in all industries to ensure the sustainable utilization of energy recourses.

As for mineral resources, we advocate a way characterized with comprehensive development and utilization and energy saving, which combined utilization of resources both domestic and abroad and emphasizes the resource allocation according to the economic situation. Based on the progress of technology, we can increase the resource utilization rate and built an economic system with high-tech and conservation. For example, fully developing potential, reducing consumption, increasing production, straightening out the price of resources, implementing compensated use system, accelerating recycling of the waste, protecting scarce resources and exploiting substitutes are practical measures to build conservation oriented system of the national economy.

2.2 Establishment of Conservation-oriented Institution and Mechanism

CO institution is the realization form and organization form, which contains rational financial institution, investment institution, self-discipline efficient governmental management institution and regular enterprise management institution. Firstly, we should make clear the property right of resources since it causes responsibility. Under this condition, we can maximize the efficiency of resource utilization and minimize the waste. Then we could promote the market oriented reform of the energy and resources and exert the fundamental function of configuration by market to establish scientific price mechanism of resources.

CO mechanism is the combination of functions with interaction, mutual restriction and coordinated operation in the economic operation, which contains systems of survey, exploitation, machining, transportation, early warning, monitor and regulation. Among them, survey system is to find out the intention and situation of the total existing resources and support making rational plan. Exploitation system is to exploit resources at minimum cost based on the long-term plan. Machining system is to process materials at maximum coefficient with advanced technology. Transportation system is to organize and manage the network with the lowest cost and the highest efficiency. Consumption early warning system is combined of signatures of the systems above to inform of the level of resource consumption in an all-weather multi-dimensional way. Monitor system is to supervise, calculate and feedback about utilization of resource in every unit of the society. These systems are mutually complementary and mutually restraint.

Price mechanism, input mechanism and complementary mechanism should be perfected in the national economic system. We should promote the marketization of prices of production factors, improve the formation mechanism of the natural resource price, increase financial support for recycling economy, exert leading function of the government and establish eco-environment compensation mechanism, producer responsibility system and consumers pay system.

3 Operation Mode of Conservation-oriented Society

Recycle economy is the operation mode of COS. Recently, there is a domestic common sense about the recycling economy, which is a new mode based on recycling materials under ecological regulation in economic activities of human society. In essence it is a kind of ecological economy. It organizes the activities into a closed process as “resource—production—consumption—reused resource”. Recycle economy has its own principles, named “3R Principles” by academic circle.

Principle of “Reduce”: That means to achieve production target and consumption target at lower cost of resources. Resource saving and pollution reduction are also involved. In the production, PR often performs as smaller volume and lower weight of products. Besides, simple product packing is also needed instead of luxurious packing so as to reduce waste discharge.

Principle of “Reuse”: It requires that products and packaging containers can be reused and repaired. As the cycle of use is extended, the resources for producing are getting less.

Principle of “Recycle”: It demands products can turn to be renewable resources after use rather than useless waste.

Obviously, “reduce” has been strengthened as a result of “reuse” and“recycle”. The “3R” principle makes maximum recycling and minimum pollution so that economic activities are in accordance with the material recycling of the eco-system, and thus the ecological transformation of human activities and economic benefit growth will be realized.