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?
Want to put an end to it? Tax the heck out of it! Seems to work except on tobacco and alcohol!