Technology Strategy Business Africa Canada Middle East Asia Europe Russia Latin America

Transport And The Environment in
Asian Megacities
By Shinya Hanaoka
This article has addressed two environmental problems
whose origins lie in the transport sector: local air pollution and CO2 emissions. Globally, the contribution ofthese impacts in Asian megacities shows an increasing
trend, and therefore calls for serious mitigation efforts
mainly regulation measures and ways to improve emission
intensity. There are good prospects for policy measures todeliver CO2 reduction in Asian developing countries as cobenefits rather than as primary benefits and that are politically acceptable, such as mass rapid transit and compact
city design, among others.

Developing Asian Megacities
Asian megacities are known not only for their rapid economic
growth but also for their rapid and large-sale urbanization. Dueto their high concentration of population, economic activity,and motorization, megacities are primary contributors to both
local and global environmental problems. The environmental
problems in megacities are closely linked to the quality of life,
which has direct implications for their competitiveness. The
transport system in a megacity directly influences its ability
to compete, and contributes to local and global environmental
problems. Measures that govern urban transport should therefore be the cornerstone of the long-term development strategies for Asian megacities.
In developing Asians megacities, used vehicles are popularfor use as both private cars and buses, and these vehicles are
sometimes imported from developed countries. These old used
vehicles emit more pollutants than new ones. Motorcycles
are also popular in a number of Asian megacities, such as
Bangkok, Hanoi, Ho Chi Minh City, Jakarta and Taipei.
This mode of transport, however, has a higher emission
load factor per person than the use of four-wheeled vehicles.
Furthermore, worsening traffic congestion exacerbates these
problems, and imposes direct economic and health costs on
both drivers and non-drivers in the form of wasted money,
stress, and other illnesses.
The rapid acceleration of motorization is at the root of
increasing local air pollution and the increasing trend of

The environmental problems in megacities are closely linked to the quality oflife, which has direct implications fortheir competitiveness.

52

The World Financial Review

carbon dioxide (CO2) emissions. Therefore, a more effective approach might be for developing megacities to tackle
these issues almost simultaneously by controlling the growthof motorization. Most Asian megacities have establishedthe necessary regulations and organizational procedures toreduce local air pollution. Moreover, to varying extents, there
has been direct investment to promote the use of clean fuel inbuses, taxis, and para-transit vehicles.

Mitigating measures of local air pollution
To control local air pollution, Asian countries have generally adopted a number of related standards and carriedout various programs to improve the quality of fuel usedin vehicles. One major tool used in air quality management is the application of ambient air quality standards,

Buses and taxis are the predominant public transport in the developing countries of Asia.
The fact that the majority of these vehicles are old and not roadworthy has prompted
countries to promote alternative fuels explicitly for use in such vehicles.
particularly the National Ambient Air Quality Standards(NAAQS), which were introduced in most Asian countries
in the late 1990s and throughout the last decade. Thesestandards are not uniform, and they vary considerably interms of the levels and types of regulated pollutants. Thesestandards also tend to be more lenient than the WHO
guidelines, EU limits, or the US Environmental Protection
Agency (USEPA) standards. The only major exception isJapan’s NAAQS, which under its basic Environment Law
and Air Pollution Control Law, is to some extent more
stringent than the USEPA standard.
The next air quality management tool for the transport
sector is the vehicle emission standards. Asian countries areprogressively moving towards higher standards. Japan, South
Korea, and Taiwan are more advanced. China and most South
Asian countries adopt a road map for new vehicle standards,
laying out a schedule for the introduction of vehicle emission
standards that are equivalent to the Euro emissions standards.
In terms of vehicle inspection and maintenance (I&M) programs, the Japanese standards are notably rigorous, whichleads to real improvement in the rate of compliance with regulations. South Korea, Taiwan, and Thailand have included
routine spot checks both for cars and motorcycles to enforce
their programs.

Controlling motorcycles and para-transit
Because of their great mobility, convenience, and affordability, motorcycles are extremely popular in both the urban andrural areas of some Asian countries. There are two types ofmotorcycle engines: two-stroke and four-stroke. The emissions
from two-stroke engines, which run on a mixture of gasoline
and lubricating oil, generate more pollution than four-stroke
engines of the same size, especially PM, HC, and CO2, but
lower NOx emissions.
Considering the political difficulty and the resulting scaleof possible social impact, no country has completely phasedout vehicles with two-stroke engines. However, in 2005,
all gasoline two-wheelers were phased out in Shanghai,though a relatively small number are still in operation in thesuburban areas, whereas Taiwan (since 2004) and Thailand(since 2001) have increased the proportion of motorcycles
with four-stroke engines by tightening the relevant vehicle
emission standards. Such an approach indirectly forces thephasing out of two-stroke motorcycles, which produce ahigher level of emissions.
In the developing cities of Asia, informal transport
services, or para-transit, which include minibuses, threewheelers, and motorcycle-taxis, play an important roles inJanuary - February 2013

urban transport. Their drawback is that they contribute totraffic congestion, accidents, and air and noise pollution,
because informal transport vehicles are often old and low
on performance. Thailand has made some efforts to restrictpara-transit operations. Land Traffic Department imposeda ban upon new taxi tuk-tuk registrations in 1984, limiting
the number of tuk-tuks in operation to 7,400 units. In 1995,
an official passenger van transit system was launched by
the Bangkok Mass Transit Authority, which also sets vanroutes and administers law-enforcement for any violations.
In 2003, Bangkok further required motorcycle taxi-drivers
to register and be granted a vest to be worn as proof of
authorization.

Thailand's Land Traffic Department imposed a ban upon new taxi tuk-tuk registrations in 1984, limiting the number oftuk tuks in operation to 7,400 units.

Promoting alternative fuels for public transportBuses and taxis are the predominant public transport in thedeveloping countries of Asia. The fact that the majority ofthese vehicles are old and not roadworthy has prompted
countries to promote alternative fuels explicitly for use insuch vehicles. Although Asian countries other than South
Korea and Japan exhibit a far more modest increase in theuse of LPG and natural gas in vehicles, progress has been
made through a number of attempts to promote the use of
these alternative fuels.
In April 1999, twelve Chinese cities, including Beijing
and Shanghai, participated in the ‘National Clean Vehicle
Action’ program, which introduced alternative fuels, particularly CNG and LPG. Thus, the number of CNG and
LPG vehicles and fuelling stations increased rapidly insome of the cities covered under this program. Shanghai
and Beijing played a major role in this trend by developing
the infrastructure (e.g., fuelling stations), designing policies(e.g., stringent environmental standards in Beijing), andproviding financial support (e.g., a subsidy for retrofitting
taxis to use LPG, and R&D on CNG/LPG vehicle technologies adopted in Shanghai). As a result, by 2003, CNG
and LPG vehicles accounted for a large proportion of theurban buses and taxis in some regions: more than 74% of
the taxis in Shanghai and 85% of the buses in the Sichuanprovince, for example.

www.worldfinancialreview.com

53

Other Asian countries have also begun to convert buses
to LPG/CNG. Through the establishment of TransJakarta
Busway, Jakarta has equipped 70% of its fleet to be CNGpowered, while the rest of its buses are Euro-II compliant. In Bangkok, LPG is the main fuel used in taxis; 73%of the taxis there are LPG-powered. In a recent move,Thailand guaranteed to freeze the price of CNG at 12
THB/kg from 2005 to 2010 for Bangkok’s urban bus fleet.
The Philippines, under the Natural Gas Vehicle Programfor Public Transport, has mandated the use of CNG in the
25 buses that currently ply the strategic routes of Southern
Luzon to Metro Manila; this number was expected toincrease to 10,000 units by 2020. In Taiwan, LPG is not
only used in public transport, because the country also
encourages the public to use LPG as an alternative fuel inother vehicles by providing a subsidy of 3 NTD per litreof LPG, under a program launched in 2001. A number of
Asian megacities have also replaced the majority of theirtaxis and para-transit fleets with LPG/CNG-powered vehicles; these include in Bangkok (1,500 LPG taxis and 7,400
LPG three-wheel tuk-tuks) and Taipei (LPG taxis). Anotherexample is Indonesia, which has begun to introduce a new
Euro-II-compliant four-stroke CNG three-wheeled vehicle
in cooperation with Bajaj Auto, which expects to replaceabout 15,000 two-stroke three-wheel vehicles.

Through the establishment of TransJakarta Busway, Jakarta has equipped 70%
of its fleet to be CNG-powered, while therest of its buses are Euro-II compliant.
Economic measures of low emission vehicle use
Despite their advantages over gasoline-powered scooters,
electric bikes have been criticized on a number of grounds,
including their lower environmental performance compared
to buses and bicycles, their contribution to traffic congestion, and safety concerns. By far the largest environmental
issue associated with electric bikes is lead pollution, which
is not produced through tailpipe emissions, but rather fromthe production, recycling, and disposal of batteries, spreadover the life cycle of the bike. That said, the use of electric bikes might also create advantages, to the extent thatthey may replace cars and conventional motorcycles. Such
concerns have forced policymakers to act rapidly toward
developing national and local policies regarding whether topromote or regulate electric bikes.

The Chinese government updated its excise tax rates,
reducing them by 2-5% on vehicles with small-displacement
engines (1,000-1,500 cc), while increasing them by 8-20% on
vehicles with larger-displacement engines (more than 4,000cc), to further encourage the manufacture of vehicles withsmall-displacement engines. In 2009, more intensive policies and initiatives were initiated, including the implementation of a demonstrative project involving the introduction of
1,000 electric vehicles in ten cities and the provision of financial subsidies for energy-saving vehicles and to the buyersof alternative-fuel vehicles. Similarly, on 27 July 2004, theThai Cabinet approved a new car excise tax package, which
resulted in the abolition of the off-road purpose vehicle classused for SUVs with four-wheel-drive systems. The tax rate
for the off-road purpose vehicles was increased from a fixed
29% to a range of 30-50%, based on four different enginesize brackets. The implementation of this policy resulted in
a 2% decrease in the number of cars with engines larger than2500 cc. The excise tax for pickup trucks was set at 20%, forfuel-cell and hybrid vehicles at 10%, and for vehicles using
natural gas at 20%. Later, in 2007, the Thai authorities also
approved a range of incentives for the production of eco-cars.
Eco-car manufacturers were granted a maximum eight-year
exemption from corporate income tax payment and machinery import duties, and the excise rates for eco-cars were set
at 17%, as compared to a rate of 30-50% for other types ofcars in the country.
In Japan, the so-called green tax system was launchedin April 2002, with an aim to reduce the automotive tax
on Low Emission Vehicles (LEVs) and to increase the rateof replacement of old diesel vehicles. Since the system’s
implementation, its effect has been so significant thatthe tax revenue in fiscal year 2002 fell much lower than
expected, because the share of LEVs qualifying for tax relief
increased to twice the estimated level. In the face of suchconsumer behaviour, there was fierce competition amongautomobile makers to develop LEVs, because they understood that manufacturers without LEV offerings would find
it difficult to survive. The tax scheme consists of a reduction in the automobile tax applied to low-emission and fuelefficient vehicles (introduced in 2001) and reductions in theacquisition tax (introduced in 1999) for purchasers of lowemission and fuel-efficient vehicles.

Avoid-Shift-Improve framework
Avoid-Shift-Improve (ASI) framework, which means 1)
reducing unnecessary travel demand (AVOID), 2) shifting
travel to lower-carbon modes (SHIFT), and 3) improving

In China, more intensive policies and initiatives were initiated in 2009, including the implementation of a demonstrative project involving the introduction of 1,000 electric vehicles in ten cities and the provision of financial subsidies for energy-saving vehicles.

54

The World Financial Review

Low-Carbon Transport Measures of Urban Transport
Strategies
Measures

AVOID

SHIFT

IMPROVE•Transport oriented
development (TOD)•Poly-centric development•Efficient freight
distribution•Rail and Bus Rapid Transit
� (BRT) development•Interchange improvement
among rail, BRT, bus andpara-transit•Facilities for personal
mobility �and pedestrians•Development of low
emission vechicles•Development of biomass
fuel

Regulations•Land-use control•Separation of bus/paratransit trunk and feeder
routes•Local circulating service•Control on parking•Emissions standards•“Top-runner” approach

Information•Telecommuting•Online shopping•Lifestyle change•Intelligent Transport System(ITS) public transport
operation•“Eco-driving”•ITS traffic-flow
management•Vehicle performancelabeling

Economy•Subsidies and taxation tolocation•Park & ride
•Cooperative fare systems
among modes•Fuel tax/carbon tax•Subsidies and taxation to
low-emissions vehicles

Technologies

Adapted from Nakamura and Hayashi, Strategies and intruments for low-carbon transport: An international review trends and effects,
Transport Policy, in press.

This problem requires a more fundamental solution at thestructural level, such as the adoption of compact land-use
patterns and less energy-intensive transport technologies.
the intensity of transport-oriented
emissions (IMPROVE), can be presented to show the low-carbon transport measures by strategy as a matrix
table. Public transport is in a dominant position to meet mobility needs
in Asian megacities because of highrate of urbanization and the relatively
lower level of economic development;
however, rapid economic growthis leading to motorization in thesemegacities. The share of public transport in Asian megacities is still very
high in international comparisons,which may have important implication for policymakers in terms ofthe need for different approaches for
how we should plan and design urban
transport.

Need more fundamental solutionsof CO2 emissions reduction

Unlike the emissions of local air pollutants, the ultimate impact of CO2
is cumulative and relatively time andplace-independent. Interestingly, alth-January - February 2013

ough there is less political willingness to directly target reductions in
CO2 emissions, good efforts have been
made to tackle local pollution - andfor understandable reasons. As the
per capita income rises and the publicdemands cleaner air, local pollution
issues can garner enough politicalsupport to effect the needed change.
This is exactly the trend observed in
Asian developed countries. The caseof CO2 emissions, however, is different. As long as people use some formof motorized transport that uses fossilfuel based energy, CO2 emissions areunavoidable, despite the effectivenessof the promotion of alternative fuelsand LEVs. Thus, this problem requiresa more fundamental solution at thestructural level, such as the adoptionof compact land-use patterns andtransport technologies that are lessenergy-intensive.
This article has addressed two environmental problems whose origins
lie in the transport sector: local

air pollution and CO2 emissions.
Globally, the contribution of these
impacts in Asian megacities shows
an increasing trend, and therefore
calls for serious mitigation efforts.
The challenge lies in the managementof the benefits of transport so that a
broad set of environmental and otherimpacts is reduced, while also ensuring that there are acceptable outcomesin terms of economic performance andequity, which have become the mainconcerns of most Asian megacities.
Paradoxically, these options are more
viable in developing countries than indeveloped countries. Unfortunately,
though, developing countries lack theresources and the technology to makegood use of these options. However,there are good prospects for policy
measures to deliver CO2 reduction in
Asian developing countries as co-benefits rather than as primary benefits
and are politically acceptable, such as
mass rapid transit and compact city
design, among others.
This article is based on “Mitigating
Transport Emissions” as the bookchapter of Morichi and Acharya eds.:
Transport Development in Asian Megacities:
A New Perspective (Springer, 2012).

About the Author
Shinya Hanaoka is an Associate
Professor at the Department ofInternational Development Engineering,Tokyo Institute of Technology since2007. He obtained his doctoral degreefrom Tohoku University in 1999. He has
worked as a Researcher at the Institutefor Transport Policy Studies in Tokyo(1999-2003), an Assistant Professor
at Asian Institute of Technology in
Bangkok (2003-2007) and a Visiting
Researcher at the Institute forTransport Studies, the University ofLeeds (2002). He has authored numerous publications on subjects: air andmaritime transport, transport logistics
and transport environment. He has
been engaged in many advisory positions on urban and national transport/
logistics projects in Asia.

www.worldfinancialreview.com

55