China urged to prioritize alternative energy

China’s Vice Premier Zeng Peiyan says that the government should speed up the development of alternative energy and encourage efforts in liquefied coal, bio-diesel, marsh gas, solar energy, wind power, and hydropower in order to reduce consumption of coal and crude oil. Consumption of automotive fuels alone, including diesel fuel and gasoline, is expected to hit 150-170 million tons in 2010, says Liu Ming, a senior economist at China’s State Information Center. As a solution, Zeng recommends that the government should consider launching a fuel tax and to establish an oil product pricing mechanism that reflects true market supply and demand. (December 1, 2006)