How Does Air Pollution Affect the Hong Kong People and Economy?

In this piece of coursework, I will examine on the speedy increase of air pollution in Hong Kong and the disadvantages it could bring to the folks, businesses and the economy. I will also consider ways in which government has tried to overcome this problem.

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I will acquire both major and secondary data from web, newspaper and magazine cuttings. I will acquire my primary information utilizing the questionnaire which I designed and query college students and adults of both sexes to provide a broad range of unbiased outcomes.

The questionnaire was designed to gather an overall impression of what the local residents which about the air pollution in Hong Kong, how a lot they know is being done about, what they really feel about extra should be carried out. The secondary information provides me with correct information and statistics from both the federal government and different organizations.

Introduction to pollution:

Hong Kong has developed itself from a small fishing city to one of the worlds largest enterprise district with billions of dollars flowing in and out day by day via other ways; tourism, import and export, international funding and so forth.

etc. But with the excess quantity of firms investing, building of infrastructures, government economical activities…etc, there has been a value that the federal government and capitalistic entrepreneurs has ignored for a really lengthy time.

This cost is air pollution which results not simply Hong Kong financial system but also the dwelling commonplace and lots of others different things in Hong Kong. With the prediction, Hong Kong’s pollution is going to bring down the economical standing that Hong Kong now has.

Surely the federal government is conscious of this downside, however they’re doing just enough to get away from the strain from the media, folks and likewise green organizations. In this course work, I am going to debate Hong Kong’s pollution, how it goes to have an effect on Hong Kong’s economic development and what is the answer to it?

Over the previous few years the place Hong Kong has had main financial development due to investing companies, pollution has becoming a severe factor to Hong Kong’s residents. The government has raised campaigns to attempt decreasing the air pollution. For instance, 4 years ago the federal government started a campaign worth one and a half billion Hong Kong dollars to reduce back pollution. It aimed to change the fuels used by public transport (especially busses and taxis) to make the air pollution higher.

Air Pollution:

Air air pollution is among the greatest worrying components in Hong Kong these days. Air air pollution can also be categorized into to 2 completely different sections, avenue degree air pollution and smog. Street level pollution is air pollution primarily fumes given off from vehicle exhausts and smog is especially given out from factories. Air pollution is the principle issue that risks our well being in numerous methods. It is said mainly to long-term well being effects attributable to plenty of excessive levels of tiny particles that can go in deep into our lungs. Sometimes the air pollution degree may be so excessive tat can might prompt results on our heart and respiratory system. Government in Hong Kong makes use of API (air pollution index) to see the air air pollution stage in Hong Kong.

Air pollution is a growing concern in Hong Kong especially when around 72% of automobiles in Hong Kong run on diesel. The burning of diesel provides out a highly toxic gasoline such as carbon monoxide, nitrogen oxide and sulphur dioxide. Since 1991, the number of autos in Hong Kong has increased by 41%. The improve in automobiles positively performed a serious part within the increase of air pollution in Hong Kong. In order to manage the amount of poisonous fuel being given off from cars, the Environmental protection division has started to fine owners of vehicles which had been giving out more toxic gasoline than the standard degree. To scale back the consumption of diesel, the government has additionally launched petrol. But sadly most of the automobile owners had been unwilling to purchase petrol, as it’s dearer.

Looking on the graph, we will see clearly that the emission of car exhaust has decreased through out the handed 10 years. This can mean that the federal government has tightened the management over automobile exhaust to have the ability to improve the pollution in Hong Kong.

Apart from exhaust fumes from vehicles, there’s additionally air pollution from construction sites. Due to the fast growth within the variety of sky scrapers in our metropolis, the extent of dusts and pollution from these worksites have considerably increased. It is certainly a nuisance to folks residing subsequent to, or near, a development site. Fortunately there are rules controlling mud from construction websites, which require contractors to undertake a variety of control measures. These embrace washing construction automobile wheels as they leave the location, covering of stockpiles, watering of entry roads etc. Failing to take such measures is an offence, with a most fine of $50,000 for first offences.

Personally I assume that a lot of the smog air pollution inside Hong Kong has been blown from the northern a part of Hong Kong, mainland china. Many factories are located there because of the cheap labour and land. The large number of factories gives out fumes and toxic gases that can eventually journey to Hong Kong by wind. But the government can not do much about this as a outcome of they cannot completely close down these factories even though they create negative externality (the pollution).

Air pollution doesn’t only have an result on the health of local residents nevertheless it also impacts our economy in relation. If air pollution continues to worsen the health of people in Hong Kong can be affected leading to a lower lifestyle. Sick individuals would therefore need to go to hospitals and authorities would then have to invest extra money on the well being division rather than different sectors corresponding to training. If the federal government cannot put cash into different sectors then its economy or way of life in that country may fall.

Not forgetting sick people would want to take sick depart from their jobs. During these sick leaves, corporations would still need to pay their employers however nevertheless, they’re receiving no enter from them. As the businesses nonetheless pay for his or her wages, they cannot afford to make use of extra labour. Therefore the entire output of the company will fall.

Another attainable antagonistic impact of pollution is that highly tertiary sector staff will leave Hong Kong to work elsewhere. This will lead to a shortage of extremely expert workers and so the Hong Kong authorities should increase wages as high expert labor is extremely scarce and the demand for it is comparatively inelastic. The diagram beneath can explain this:

Pollution might trigger many of the expert employees to go away Hong Kong. If they leave Hong Kong, then the availability of those individuals will lower as shown by the shift within the supply curve to the left (S1 to S2). The quantity of labor for this job will lower (shift from Q1 to Q2). As there’s less supply for this type of labor then, the wage will rise (W1 to W2). As firms are paying more for a similar amount of labour, the typical profit one unit of labour supplies will decrease decreasing financial growth.

Pollution is an external cost and pollution causes social and private costs. Private prices are prices paid by financial choice makers. Private benefit is profit acquired by financial decision makers. Social prices and social advantages are prices and benefits associated with the society. Therefore:


But how a lot is the optimum pollution stage the place there is most social benefit? A marginal social prices and benefit graph could tell us.

The marginal social benefit curve shows how rather more profit society as a whole will achieve from one additional unit. The marginal social price curve reveals the extra price to society as a whole of this extra unit. If the MSB is greater than MSC, then it might be helpful to increase the consumption (positive externalities). If MSC is above MSB, it means that every unit produced creates more prices to the society than benefits being gained (negative externalities). Therefore manufacturing must be minimize. The optimum level is there the two graphs meet. It is in theory that the quantity of costs created is equaled to the quantity of benefits gained.

eg. New developments such as the Hong Kong Disneyland have significant impact on Lantau’s pollution. But because the marginal social advantages (attract tourism etc) exceeds the marginal social costs (pollution), it is due to this fact reasonable to build Disneyland.

What solutions are there to reduce pollution?

There are many potential methods during which air pollution may be lowered and controlled. Fines and laws, tax, subsidy, improve schooling, know-how and tradeable permits. But the government has to determine within ones that are the most useful with least unwanted side effects.


The development of modern expertise could management the air pollution degree. A few years ago, the federal government introduced the LPG taxi which will cause less air pollution. The government may even begin changing a lot of the light autos, mini-buses…etc to use LPG as an alternative of diesel. Although it’s going to cut back the pollution of Hong Kong, but due to the LPG station is dear and inconvenient to build, it’s onerous for proprietor of sunshine vehicles’, mini-buses’ and taxis’ to vary their vehicles into LPG automobiles. It is expensive to do so. But the federal government is subsequently investing $1.4 billion to help house owners to change from diesel to cleaner LPG engines, and to regulate the remaining diesel emission.


Looking at the provide and demand diagram for subsidies we can see that as the government provides a subsidy for a good, the quantity of the good will increase as the additional cash which corporations have got from government permits them to supply more. The price for customers also decreases because the quantity in the reduced price is already paid by the government.

By placing a subsidy on goods, the government encourages the production of this good. Therefore the federal government would usually place a subsidy on goods which are extra environmentally pleasant so extra are created and the price is comparatively decrease than different goods of the same type. This would lower the consumption of polluting goods and companies. For example, the federal government subsidized on the production and use of LPG building stations around Hong Kong.

Emission requirements for newly registered autos have been tightened since 1995. The Hong Kong authorities uses the Euro III standards in step with the European Union in 2001. The outcomes come out to be diesel autos emits 90% less particulates and 40% much less nitrogen oxide than the version earlier than.

A path of LPG and electric public buses was completed in 2001. Both are less polluting than diesel. The government at the second are have schemes which are going to encourage owners of the 6,000 old diesels public and private mild buses to vary to environmentally friendly LPG or electricity light buses.

The authorities additionally has system that controls smoky vehicles. The spotted smoky vehicles are required to undergo a smoke test within a specified interval. Failure to pass the check will end in canceling the automobiles license.


This supply and demand graph reveals the market for a good after tax has been placed. A agency would need to boost the value of their goods if the federal government locations a tax on it. Therefore the priced paid by the consumer of the good would also enhance. The value of the nice is elevated as a result of at the present worth, the earnings revenues made from the nice will be the similar but there might be further costs from taxes. Firms will have the flexibility to provide much less of the great to the market as the worth of producing this good has risen. As much less people are willing to pay the price for this product, the demand will fall leading to much less of that specific good supplied. When less is supplied, there could be much less hurt to the environment.

So to guarantee that they cowl these extra costs, the firms raise their costs. The demand for the nice will contract because much less individuals will be willing to pay that additional amount of money.

Tradeable Permits:

Tradeable permits are a new modern way in which authorities controls pollution. Firstly, the federal government decides a limit for the amount of air pollution. Then it’s issued to businesses according to their manufacturing level for an amount of cash. If companies usually are not keen to pay permits, they must think of alternate ways to produce with less pollutant. Firms are then allowed to buy and promote permits to each other if they have a scarcity or surplus. If this concept is working successfully, the government would start to decrease its limit to ultimately control the issue.


The authorities also can enhance the standard of schooling inside Hong Kong so that kids could be taught at a younger age about how critical the scenario of air pollution just isn’t only inside Hong Kong but also around the world.

Hong Kong and Guangdong co-operation:

In 2004, The Hong Kong Environmental Protection Department has teamed up with the Guangdong Environment Protection Bureau to create basic air pollution measuring and control gadgets. 16 air quality monitoring stations have been setup across the Pearl River Delta region

Addition of Public Transport:

By creating extra public transport, it could encourage citizens to ride on them as a substitute of traveling using non-public autos. This means, it could scale back the variety of automobiles on the streets.


Pedestrianisation is to convert roads that are originally used by public vehicles into areas of which solely pedestrians are allowed. This then limits the amount of vehicles allowed in that area.

Electronic Road Pricing

Electronic highway pricing works by setting a value which drivers should pay every time they pass a degree. Drivers that are unwilling to pay this value would be forced to stop driving therefore congestion shall be decreased. For instance, the federal government just lately has elevated the tunnel fees partly because of proscribing the variety of autos crossing the harbor every day.

Analysis and Evaluation of Solutions:

All the above different varieties of options could possibly reduce and control the air pollution stage but which of them have the least facet effect and is probably the most efficient? Technology could possibly be a super resolution to the future of our air pollution crisis. Though it will be very pricey; in the long term, it could unquestionably profit our society as an entire. The downside is, “Who might be willing to pay for these costs?”. It could be mentioned that the federal government should be responsible, at the identical time it might be the residents or companies. It could be troublesome to decide on who’s going to pay for the research of those technologies. Subsidies could possibly be granted by the federal government to develop the technological area.

The sum of money backed come from citizens of Hong Kong as a form of tax. The increase of tax to pay these grants may presumably upset a lot of the Hong Kong citizens. Firms which support environmental manufacturing for instance use of solar power may be sponsored by the government. However, I personally suppose that tax on a specific good could be a better concept to govern shoppers to switch from one product to its substitute. This is because the present financial system is not fairly strong. People are very concerned about how their cash should be spent. Therefore, it’s much simpler to use this concept to control air pollution. On the other hand, it could possibly be troublesome to predict the most effective tax price. Disagreements additionally arise in governments as environmental departments and monetary departments have totally different motives. One bases their motives on creating a better society by controlling pollution while the opposite aims on rising tax to create probably the most revenue.

Trade permits is an efficient resolution as governments can clearly prohibit the quantity of pollution produced. Firms have an excellent freedom to regulate their amount of allow buying and selling with one another if they’ve a surplus or shortage. However if a firm purchases all or a majority of the trade permits, it may mean holding a powerful monopoly place producing an issue to the market. Education, like technology advantages the long run and has a very long time effect. One of its advantages is it isn’t fairly costly as it could possibly be taught in class the fundamentals of air pollution. By including more public transport hypothetical ought to encourage individuals to travel much less using non-public autos but if the plan does not work out as intended, it might actually cause a bigger amount of air pollution. To assist the addition of public transport, authorities could additionally lower its costs additional encouraging its use.


Pollution is extra of an issue in Hong Kong now than it ever was. But I feel that the government isn’t the only one responsible for the increase in air pollution over time. The Hong Kong government has not done a lot to cease air pollution, and every time it has held campaigns in opposition to air pollution, they have not been as successful as deliberate. It could be very straightforward accountable the federal government pupil. But I feel that the individuals in Hong Kong have also not carried out much to help the situation. Even after figuring out the poor scenario of air pollution in Hong Kong, the people of Hong Kong have continued to depart their automobile engines on whereas parked releasing immense quantity of exhaust.

To be positive that the people of Hong Kong do their bit to cut back pollution, it’s important for the government to teach people extra concerning the concern of pollution. I think that the residents of Hong Kong could do much more to cease pollution. Many people in Hong Kong waste electrical energy at will and if they’re more thoughtful and minimize down on the use of electrical power, pollution can be reduced because the production of electrical power releases many forms of gases into the atmosphere. If folks in Hong Kong do their bit and the federal government will increase their spending on making an attempt to reduce pollution, I am sure that the air pollution in Hong Kong will definitely decrease.