Laughing out loud - the Chinese do not know WHAT insulation IS (I SWEAR) but we get this article about Americans conserving energy and insulating in the Shanghai Daily:

 

 

 

 

 

 

 

 

Norma Cummings, 70, is glad she installed new windows, weather stripping, a furnace and water heater last year, with help from the Association for Energy Affordability, after 20 years living in her drafty home in the Bronx, New York.

"You can imagine, with the heat escaping, as the rates increased in the last few years, so did my utility bills," she said. "The energy usage has dropped, conservatively, at least 35 percent."

The Shanghainese, when they buy and apartment, must "decorate" it themselves.  So one of my friends says that he will spend 100,000 to 150,000 yuan to "decorate" his new apartment.  Not only a water heater and cooking stove, but also bed, cupboards, plaster, paint, etc.

BUT NOT INSULATION - I HAVE YET TO SEE INSULATION in SHANGHAI.  Now, I know that I do not make it out to the "Expat" areas - so I am not saying that it does not exist.  What I AM saying is that the average Chinese family does without insulation!  Talk about wasting energy.  OH - even though Natural Gas is prevalent - they ALL heat by electricity, that is electric air conditioners (a/c and heat)!!!  Talk about inefficient and weird!!  Sheesh - my opinion!  Seems like some insulation and tight windows could save lots of money, but then energy is subsidized!!!

Perhaps this is good ECONOMIC reasoning, but I have yet to find it!

The other article from the Shanghai Daily that I wanted to share is about Fixed Gas Prices:

 

 

 

 

 

 

 

 

Under the proposal, the tax on gasoline would be raised to 1 yuan (14 cents) per liter from 0.2 yuan and the diesel tax would jump to 0.8 yuan per liter from 0.1 yuan, according to the National Development and Reform Commission.

 

 

 

 

 

 

 

 

Even with the tax increase, pump prices would not be raised above present levels, and future prices would be set by a more market-oriented mechanism.

Well, DUH - the government hasn't LOWERED gas prices since oil prices began falling so of course they don't NEED to lower prices!!!  Laughing all over the place!  So at 1 yuan per liter that is about 4 yuan per gallon (for U.S. readers) which means over 56 cents.  If gas prices average $1.75 in the U.S. now, notice that would be not quite 33% of the cost!!  TO THE GOVERNMENT!!  At 1 yuan per liter NOW, the gas price is 6 yuan per liter so that's still a hefty tax here.  And I won't comment about the below as I believe you can read for yourselves!  Laughing!

 

 

 

 

 

 

 

 

The tax increases would replace road maintenance fees, other annual charges and some road tolls.

"This means lower overall costs for drivers," said Hu Yijian, a tax law professor at the Shanghai University of Finance and Economics.

The new tax revenue would also be used to subsidize farmers and other low-income groups.

The government said it would link domestic fuel prices to international crude oil prices in an "indirect" way. The proposal would grant refiners Sinopec Corp and PetroChina Co a guaranteed profit margin by allowing them to set pump prices at 4 percent above refinery-gate costs plus transportation costs.

 

 

 

 

 

 

 

 

Even with oil prices tumbling to below US$50 dollars a barrel, Chinese drivers are paying about 6 yuan per liter - much more than those in many other countries because the government-set domestic fuel price has been unchanged since June.

A Beijing-based industry watcher, who spoke on condition of anonymity, said the proposal still lacks many details, such as exactly how the expanded fuel consumption tax would affect pump prices.

The proposal is also at odds with a Ministry of Finance announcement about 10 days ago that the sales tax on gasoline and diesel would remain unchanged for 2009.

But other experts said the proposal marks a key step forward for China in its long-awaited energy pricing reform, after years of refining losses and periodic supply shortages.

China, they said, can use the plunging crude oil prices as an opportunity to advance reform and make the highly regulated sector more market oriented.

"At least we have a framework now, upon which further measures could be mapped out," said Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University.

The period for public comments will run through next Friday.

I wonder what "public comment" means?!!?  Here we go:  WE SHALL SEE!!!