Posts tagged as:

pollution

Olympic-Sized Problem in Beijing Tackled With Taxes

August 14, 2008 · 1 comment

Olympics Opening Day

You only have to a take a peek at the Olympic coverage on NBC to confirm what tourists already know: China has a smog problem.

On the opening day of the Olympic games in Beijing, video and photos showed shots such as the one above, of the National Stadium, shrouded in smog. And of course, the US cycling team caused quite a stir when they arrived in Beijing wearing respiratory masks, ostensibly to protect them from the poor air quality.

How smoggy is China? No one knows for sure. The Chinese government has released figures as low as 88 Air Pollution Index (API), which they feel is extremely safe, though the World Health Organization does not like to see API levels above 50. A team of scientists from the UK had been monitoring the air quality in Beijing but were asked to cease their activities; an email noting the stoppage said, “I am very sorry to have to let you know that at the request of our Chinese partners in this project we are unable to provide public access to the Beijing Air Quality forecasts during the Olympic Games period.”

Despite the lack of detailed information, one thing is certain: China’s air quality needs improvement. And the Chinese government is clearly aware of this problem. The issue is not whether to reduce pollution but how.

The Chinese may be taking a page from their European counterpart’s playbook on their efforts to control pollution: discourage ownership of vehicles that pollute by raising taxes.

The Chines government is raising the sales tax on cars with engines larger than four liters to a whopping 40%. For cars with engine capacities from three to four liters, the tax will be raised to 25%. And small cars? The sales tax rates on those cars will be lowered to 1%. The new rates are effective September 1.

The Ministry of Finance and the State Administration of Taxation made the announcement on yesterday. The Ministry said that the purpose of the increase was to “help restrain the production and sales of high-emission vehicles while promoting the production and sales of low-emission cars.” Some analysts place the blame for poor air pollution in Chinese urban areas like Beijing on car emissions – claiming that as much as 80% of the pollution in those areas are linked to cars.

I would love to see the comparisons of air pollution change in urban areas in the US, the UK and China after these taxes are in place for a significant period of time. While countries like the UK and China are taking punitive measures to discourage pollution, the US is taking the opposite tact by incentivizing conservation. Opposing strategies to hopefully achieve the same end: which do you think will work best?

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London’s Low Emission Zone Tax Expands

February 5, 2008 · 1 comment

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Last year, the Mayor of London outlined a plan for London’s LEZ (Low Emissions Zone). The plan was derived after a study showing that the City of London has the worst air pollution in the UK and is among the worst in Europe.

This month, almost all of London will become a LEZ. The LEZ is a specified area where the most polluting diesel engined trucks, buses, coaches, large vans and minibuses will be required to meet specific emissions targets or pay a tariff/tax. The LEZ does not apply to cars or motorcycles.

How steep is the tariff? £200 (sadly, that translates these days to almost $400 US)

The measure will be enforced using cameras that will read license plates in the LEZ and check them against a database of registered vehicles that meet the emissions standards, have paid a daily charge, or are exempt. Those who are not in the database will have to pay the tariff.

While many are cheering the measure as a step forward, London Conservative mayoral candidate, Boris Johnson, has described the scheme as “the most punitive, draconian fining regime in the whole of Europe.”

What do you think? Would you like to see this scheme in more cities? Or a variation on this scheme? Many cities, such as Singapore, have similarly themed schemes to control congestion.

In 2005, when London adopted a “congestion tax”, traffic flow improved, congested dropped 30% and emissions were lowered. The Mayor of London told a group of American mayors, “We are the only city in the Western world where there’s a notable shift from car use to public transport. This is the only thing I’ve done in my political life that turned out better than I hoped.” Drivers who enter central London must buy daily, weekly or yearly passes and register their license plate numbers. License plates within the zone are noted, and motorists who have not paid the fee are fined. The fines are only imposed during work hours.

Would this work anywhere else?

note: b5media is beta testing a new photo format that will allow us to post images, such as this one from Getty, on our sites. Your feedback and comments are encouraged!

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