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On March 5, Cao Xianghong, a member of the Chinese People's Political Consultative Conference and academician of the Chinese Academy of Engineering, expressed concerns during an interview that China’s natural resources, energy reserves, and environmental capacity are not sufficient to support sustained economic growth. He emphasized that current public awareness and educational efforts are inadequate in encouraging people to actively conserve energy and reduce emissions. In response, he called for the implementation of more effective pricing and taxation policies to drive energy efficiency and lower carbon footprints.
Cao noted that over the past three years, China has made significant efforts to promote energy-saving and emission-reduction initiatives, with even greater focus last year. Despite these efforts, sales of small-displacement vehicles have continued to decline. Some industry experts predict that such vehicles may completely disappear from the Chinese market by 2010. This trend worries Cao, especially given the country's reliance on oil-based energy sources.
He pointed out that consumer behavior in China still reflects many irrational preferences. Simply relying on public education is not enough to shift these habits. Instead, he argued, the government must use economic incentives—such as pricing mechanisms and tax adjustments—to encourage more sustainable choices. He highlighted that in Europe, particularly in countries like Italy, small-displacement cars have been popular due to favorable economic policies and market strategies. This, he said, demonstrates how economic tools can effectively shape consumer behavior and support long-term environmental goals.