Executive Summary

Background
In the recent years China has faced several environmental problems, one
of them is Haze. During Haze period, most part of the city is covered with
grey layer of Photochemical fog which reduce the clarity of the sky. This
phenomenon has caused escalation of mortality rate in China due to
inhalation related disease or traffic accident due to limited visibility.

Source
Haze is a blend of air emissions such as Sulfur dioxide (SO2), Nitrogen
Oxide (NOx) which come from Vehicle emission and factory located near
the city and particulate matter from construction dust with fog that
naturally occur. This mixture forms a thick grey layer surrounding the city.
In case of Shanghai, because there is no factory site nearby, the air
pollutant comes from the city itself due to uncontrolled vehicle population.

Objective
Find an effective way to control Haze problem by reduce the amount of
Sulfur dioxide (SO2), Nitrogen Oxide (NOx) pollutant which mostly come
from vehicle emission.

Methodology
There are several regulations and solutions that can be implemented to
control Vehicle population in China such as :

Release Certificate of Entitlement before buying a car

Improve emission standard
Provide better and reliable public transport

Comparison

Conclusion

Introduction
What is Haze
Haze is generally described as the agglomeration of particulate matter in
polluted air (longterm haze pol). In detail it is formed from a mixture of
Particulate matter from construction dust and air pollutant such as Sulfur
dioxide (SO2), Nitrogen Oxide (NOx) from vehicle emission or factory
emission. Those pollutant and particulate matter are trapped in the water
droplets when the weather is wet, then create photochemical haze
(longterm haze pol). This phenomena also responsible for the many
negative impact on various aspects such as Human health by causing the
elevation of mortality rate in China either it is because of respiratory
related diseases, in social aspect by causing many traffic accident and
delayed flight due to limited visibility.

Current Situation
The Haze hazard level can be measured from the amount of main
pollutant component such as PM 2.5, PM 10, NOx, SOx and CO contained in
the air. Below graph shows the amount of PM 2.5 in hourly and monthly
average in Shanghai from 2011-2014.

The first graph gives us information that the amount of PM 2.5 have it is
highest concentration during winter period (November January 2014). It
was possible because the amount of water available during winter season
capable to bond more particulate matter which resulted in higher PM 2.5
concentration. Meanwhile, in the hourly average, PM 2.5 concentration
reached a peak during rush hour period (8-10 am and 7-9 pm). This
phenomenon was caused by the volume of vehicle in the streets and
produce emission during that period.

Source of Haze
There are two major causes that need to be resolve to reduce the amount
of SO2 and NOx in Shanghai. The first one is the rapid development of
economical standard for china resident which have an impact to the
steady increase of cars population particularly in big city. The second one
is the implementation of Chinas emission standard which fall behind from
Europeans emission standard. This two combined factors with inadequate
public transportation has lead to dramatic rise of private cars population
in China.

Recommendation
Car Reduction Policy
Economic escalation of Chinese resident has proved to be one of the
reasons of air pollution. Research shows that in 2009, 13.64 million cars
had been sold in China, and in the end of 2010 the number increased to
200 million, which their NOx and HC emission contributed to 25% from
total national emission (Hao). The graph below shows the increase of car
population in Shanghai from 1993-2011.

Car Ownership Control in Chinese Mega Cities:

Shanghai, Beijing and Guangzhou

As we can see from the graph above, the number of registered automobile
shows no signs of slowing down from 1996-2011, and has dramatic
increase from 2002-2010. This development emerged due to the increase
in the standard of living for china residents, insufficient and inadequate
public transportation available and there is no strict policy related with
private cars. There are three suggestions that can be combined and
implemented to reduce the amount of private vehicle.
Issue Certificate of Entitlement (CoE)

This method has proved to be the most effective way to

reduce the the amount of vehicle purchased by the citizen. It
has been implemented in Singapore and shows satisfactory
result. Certificate of Entitlement itself is a way to shows a
right to own vehicle and use limited road space for 10 years
period (Gov sg). This method allows the government to
control the vehicle population since it is based on quota and
bidding system. Flowchart below shows steps needed to apply
for Certificate of Entitlement.

COE open bidding system will open twice a month.

Citizen who wish to apply for COE required to place a
bid with minimum price 1 SGD and place bid deposit.
After bid is placed, the amount of money cannot be
withdrawn while bidding process is running
Citizen will compete with each other by placing higher
bid with minimum increment 1 SGD.
After the bidding is closed, the highest bidder or the
second highest (depend on the availability) will receive
Citizen who fail to win the COE will get their money

Sigfully
gov
refunded.
Because it uses quota system, government can stop
producing this Certificate after the number of maximum
quota has been reached and prevent their citizen to buy

private vehicle. Bidding system is also have an advantage by

increase the price of the certificate from competition and
make the total cost will be higher. In addition, this certificate
need to be renewed every 10 years, it means that
government has a stable income every year just by
implementing this solution. There are several advantages and
disadvantages of using this solution.
Advantage :
The amount of vehicle population controlled by the

government
Bidding system can restrain citizen desire to buy cars
Ownership of private cars limited by 10 years
Provide additional income for the government

Disadvantages :

Only can be implemented if the Country already has

reliable public transport.

Increase Petrol and Diesel Price for Private Cars

Another way to enforce China residence to release their

dependence from private cars is by increase fuel price.
Compare to the other country, China petrol and diesel price is
relatively cheaper as shown in the table below.

Country
China
Singapore
Hongkong
South
Korea
Japan

Gasoline
Diesel
Price
Price
(USD/L)
(USD/L)
1.07
0.95
1.55
0.99
1.94
1.43
1.39
1.12

1.22
0.93

This solution is one of the available options for The

Government to restrain the car consumerism in China. This
option available since the goverment have a full authority to
control the price. However, this solution need to be
implemented accurately and require supervision since it can

give a negative impact on citizens with limited level of

economical standard. One simple solution to cover this
problem is by place a permanent tag on specific classes of
vehicles.
Advantages :
Reduce the number of private cars
Save money in the treasury by cutting the subsidised
money
Disadvantages :

Need supervision on the implementation to avoid

manipulation
If the application not accurate can have a huge impact
on Country economy

Improve public transport

Public transport has been a part of Shanghai life style for a

long time. However, the rise of living standards and declining
in public transport reliability has proved to be the main
reason of the declining number of public transport passenger.

Managing air quality in rapid development nation

Both figure above show the correlation between the rise of
Gross Domestic Product (GDP) the decrease of public
transport passenger. From 1996-1999 the number of
passenger steadily increase from 2,307 billion to 2,420 billion
passengers per year, It is in line with the steady growth of
GDP from approximately 800 billion USD in 1996 to 1200
billion USD in 1999. The interest of using public transport is
increasing drastically during 1999-2002 which rise from 2420
billion into 2775 billion passengers while the GDP rise slowly
from around 1300 billion USD to approximately 1500 billion
USD. However, when the GDP reached its peak at 1800 billion
USD in 2003 the number of passenger decline from 2775
billion in 2002 to 2731 billion in 2003. This phenomenon
shows that the increase prosperity in Shanghai resident
makes the usage of public transport less attractive.
Another reason why the popularity of the public transport is
declining is the unreliability and insufficient its facility such as
uneven distribution of public transport in rural area and the
inconvenience of being crammed into the tram during rush
hour.

The best way to return the popularity of public transport is by

fixing problem areas such as:
Provide additional station and rail that connect Central

Business District (CBD) with the rural area.

Improve the comfortability of the public transport by

using retractable seats

Increase the number of trams, buses or train and
reduce the waiting time.

Advantage :

Connecting the bussines distric into rural area

Provide a convenience to the resident to travel especially

long distance travel

Help the development of the rural area

Disadvantage :
High cost project
Takes long time to be fully implemented due to the construction
time

Measurement Criteria
In this project, the measurement criteria will be divided into five aspects
with different weighting value : Time required to be fully implemented,
Cost of the project, Effectiveness, how difficult the project to be
implemented, and the maintenance cost.

Time

(Value : 30%)
Time is one of the most important aspect that we need to consider, it is
because the project need to be fully implemented and executed in a short
time to solve the problem as soon as possible.

Issue Certificate of Entitlement

Cost

(Value : 10%)

Effectiveness

(Value : 30%)

Technical Difficulty

(Value : 20%)

Maintenance

(Value : 10%)

Conclusion