Reported by John C.T. Ko

January 27, 2007

A Review on the Sustainability Policy of Industrial Parks in Taiwan: Example of Hsinc

hu Science-based Industrial Park

Policy Paper Presentation Presented by: John C.T. Ko

Outline of the Presentation

1) Introduction2) The Environmental & Social Impacts

of the HSIP3) The Policy4) Policy Issues5) 5 Policy Options6) Conclusion & Recommendations

Part I: Introduction

Policy Paper Presentation Presented by: John C.T. Ko

Introduction

Background of the Study

Objectives of the Study

Significance of the Study

Scope and Limitations

Definition of Terms

Policy Paper Presentation Presented by: John C.T. Ko

Background of the Study (1)

Historical review and the evolution of the industrial park in Taiwan

HSIP’s successful factorsEconomic performance of the HSIP

Policy Paper Presentation Presented by: John C.T. Ko

Background of the Study (2)

Policy Paper Presentation Presented by: John C.T. Ko

Background of the Study (3)

SustainabilityProblems

Policy Paper Presentation Presented by: John C.T. Ko

Objectives of the Study

Develop an Integrated Policy Framework

Develop an Integrated Policy Framework

Identify the Sustainability Problems

Identify the Sustainability Problems

Promote a Better Social Welfare

Promote a Better Social Welfare

ObjectivesObjectives

Policy Paper Presentation Presented by: John C.T. Ko

Significance of the Study

Pay Attention to Social Impacts

Pay Attention to Social Impacts

Maximize Industrial Profits

Maximize Industrial Profits

Minimize Industrial Damages

Minimize Industrial Damages

Explore Regulatory Context

Explore Regulatory Context

Formulate Effective Policies

Formulate Effective Policies

Policy Paper Presentation Presented by: John C.T. Ko

Scope and Limitations

Time frame: 19802006Space frame: SIPHSIPTheoretical frame: PolicySustainability

Time frame: 19802006Space frame: SIPHSIPTheoretical frame: PolicySustainability

xEconomic competitiveness: incentives…xEnvironmental damage: air, water, soil…xSocial impact: health, disparity, inequality

xEconomic competitiveness: incentives…xEnvironmental damage: air, water, soil…xSocial impact: health, disparity, inequality

ScopeScope

LimitationsLimitations

Policy Paper Presentation Presented by: John C.T. Ko

Definition of Terms

Industrial Park

Science-Based Industrial Park

Eco-Industrial Park

Export Processing Zone

Special Economic Zone

Freeport Zone

Part II: The Environmental & Social Impacts of the HSIP

Policy Paper Presentation Presented by: John C.T. Ko

The Environmental & Social Impacts

HSIP 1997: UMC fire with toxic air, fire fighters fainted. Surrounding residents Damage to the health

HSIP 1997: UMC fire with toxic air, fire fighters fainted. Surrounding residents Damage to the health

San Jose 1982: Chemicals leaked out of underground storage tanks. Neighboring families Cancer

San Jose 1982: Chemicals leaked out of underground storage tanks. Neighboring families Cancer

HSIP 2000: Shengli Corp’s illegal dumping of chemical waste into the river Groundwater polluted

HSIP 2000: Shengli Corp’s illegal dumping of chemical waste into the river Groundwater polluted

Past Incidentsin the SIP

Past Incidentsin the SIP

Policy Paper Presentation Presented by: John C.T. Ko

The Environmental & Social Issues of the HSIP

CoastalPollution

CoastalPollution

WaterConsumption

WaterConsumption

Groundwater Pollution

Groundwater Pollution

Waste Water Discharge

Waste Water Discharge

Public Health Crisis

Public Health Crisis

OHS & Social Issues

OHS & Social Issues

HSIP

Part III: The Policy

Policy Paper Presentation Presented by: John C.T. Ko

Structure of Overall Policy

The “Act for Establishment & Administration of SIPs”

Plus more than 100 other regulations in 15 categories

“IT Duty-free Law”

“Land Rental Regulation”

HSIP committee handles the application process, only EIA reviewed by local Gov.

Self-Sustaining Community

Special Adm. District under Central Gov.Special Adm. District under Central Gov.

A Duty-free PolicyA Duty-free Policy

One-Stop Service + sound infrastructureOne-Stop Service +

sound infrastructure

Policy Paper Presentation Presented by: John C.T. Ko

Sustainability Policy

7 key laws Environmental Impact Assessment Act 1994

Waste Disposal Act 1997

Soil & Groundwater Pollution Remediation Act 2000

Air Pollution Control Act (2002, latest revised)

Water Pollution Control Act (2002, latest revised)

Drinking Water Management Act (amended in 1997)

Toxic Chemical Substances Control Act 1986

Part IV: Policy Issues

Policy Paper Presentation Presented by: John C.T. Ko

Policy Issues

1. Local Government’s Power Minimized

2. Lax Environment Management System

► Development Permit System

Problem

► Total Capacity Control Problem

1. Local Government’s Power Minimized

2. Lax Environment Management System

► Development Permit System

Problem

► Total Capacity Control Problem

Part V: Policy Options

Policy Paper Presentation Presented by: John C.T. Ko

5 Policy Options

Option #1: Sustain a high economic growth (Status quo)

Option #2: Enhance the environmental protection measure

Option #3: Release the supervisory power to local government

Option #4: Formulate a passive regulatory stipulation

Option #5: Formulate a proactive voluntary stipulation

?

Policy Paper Presentation Presented by: John C.T. Ko

Assumptions (1)

Policy Options Criteria Criteria Code Qualitative Description

Efficiency A Effectively reach an optimal balance between economy and sustainability

Cost-Saving B Effectively save the government budget expenses

Sustainability C Effectively minimize environmental and social impacts

Economic Prospect D Effectively entails the economic

benefits for the nationLegal & Adm.

Feasibility E Effectively conform to the laws and international trend & expectation

Policy Paper Presentation Presented by: John C.T. Ko

Policy Options Rating Scale

Descriptive Interpretation

Numeric Interpretation

Very Effective 4Effective 3

Moderately Effective 2Ineffective 1

Assumptions (2)

Policy Paper Presentation Presented by: John C.T. Ko

Policy Options Prioritization Index

Priority Index Description

Numeric Priority Index

Highest Priority 4

High Priority 3

Fairly Priority 2

Less Priority 1

Assumptions (3)

Policy Paper Presentation Presented by: John C.T. Ko

Assumptions (4)

Policy Options Criteria on Weighted Percent

Criterion CodeWeighted

Importance (%)

A (Efficiency) 30%

B (Cost-Saving) 10%

C (Sustainability) 30%

D (Economic Prospect) 20%

E (Legal & Adm. Feasibility) 10%

Policy Paper Presentation Presented by: John C.T. Ko

Decision Matrix (1)

1st Step Using the Selection Rating Scale

Criteria Option 1 Option 2 Option 3 Option 4 Option 5A (Efficiency) 2 4 3 2 4B (Cost-saving) 3 2 3 4 1C (Sustainability) 2 4 3 3 4D (Economy) 4 3 3 3 3E (Legal & Adm.) 2 4 3 2 3Total Score 13 17 15 14 15

Ranking 5 1 2 4 2

Policy Paper Presentation Presented by: John C.T. Ko

Decision Matrix (2)

CriteriaPriority index

Option 1 Option 2 Option 3 Option 4 Option 5

A (Efficiency) 4 8 16 12 8 16B (Cost-saving) 2 6 4 6 8 2C (Sustainability)

4 8 16 12 12 16

D (Economy) 3 12 9 9 9 9E (Legal & Adm.)

2 4 8 6 4 6

Total Score 38 53 45 41 49Ranking 5 1 3 4 2

2nd Step Applying Priority Index

Policy Paper Presentation Presented by: John C.T. Ko

Decision Matrix (3)

CriteriaWeighted %

Option 1 Option 2 Option 3 Option 4 Option 5

A (Efficiency) 30% 2.4 4.8 3.6 2.4 4.8B (Cost-saving) 10% 0.6 0.4 0.6 0.8 0.2C (Sustainability)

30% 2.4 4.8 3.6 3.6 4.8

D (Economy) 20% 2.4 1.8 1.8 1.8 1.8E (Legal & Adm.)

10% 0.4 0.8 0.6 0.4 0.6

Total Score 8.2 12.6 10.2 9.0 12.2Ranking 5 1 3 4 2

3rd Step Applying Weighted Percentage

Part VI: Conclusion & Recommendations

Policy Paper Presentation Presented by: John C.T. Ko

Conclusion

Option 2 Option 5 > Option 3 > Option 4 > Option 1≧

Option 2 + Option 5 + Option 3 + Option 4 + Option 1

Policy Paper Presentation Presented by: John C.T. Ko

Recommendations

Environmental laws should be strengthened Information should be made available & accessible The HSIP & local government should work in close

partnership International expertise on monitoring hi-tech

operation processes should be shared globally International NGO action should join to help the

transformation Corporate social responsibility: promote a company-

community partnership

Policy Paper Presentation Presented by: John C.T. Ko

Taipei 101The tallest building in the world