Reported by John C.T. Ko January 27, 2007 A Review on the Sustainability Policy of Industrial Parks in Taiwan: Example of Hsinchu Science-based Industrial Park

Policy Paper Presentation Presented by: John C.T. Ko Outline of the Presentation 1) Introduction 2) The Environmental & Social Impacts of the HSIP 3) The Policy 4) Policy Issues 5) 5 Policy Options 6) 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 factors  Economic 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) Sustainability Problems

Policy Paper Presentation Presented by: John C.T. Ko Objectives of the Study Develop an Integrated Policy Framework Identify the Sustainability Problems Promote a Better Social Welfare Objectives

Policy Paper Presentation Presented by: John C.T. Ko Significance of the Study Pay Attention to Social Impacts Maximize Industrial Profits Minimize Industrial Damages Explore Regulatory Context Formulate Effective Policies

Policy Paper Presentation Presented by: John C.T. Ko Scope and Limitations Time frame: 1980  2006 Space frame: SIP  HSIP Theoretical frame: Policy  Sustainability Time frame: 1980  2006 Space frame: SIP  HSIP Theoretical frame: Policy  Sustainability xEconomic competitiveness: incentives… xEnvironmental damage: air, water, soil… xSocial impact: health, disparity, inequality xExEconomic competitiveness: incentives… xExEnvironmental damage: air, water, soil… xSxSocial impact: health, disparity, inequality Scope Limitations

Policy Paper Presentation Presented by: John C.T. Ko Definition of Terms  Industrial ParkIndustrial Park  Science-Based Industrial ParkScience-Based Industrial Park  Eco-Industrial ParkEco-Industrial Park  Export Processing ZoneExport Processing Zone  Special Economic ZoneSpecial Economic Zone  Freeport ZoneFreeport 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 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 Past Incidents in the SIP Past Incidents in the SIP

Policy Paper Presentation Presented by: John C.T. Ko The Environmental & Social Issues of the HSIP Coastal Pollution Coastal Pollution Water Consumption Water Consumption Groundwater Pollution Waste Water Discharge Public Health Crisis OHS & Social Issues HSIP

Part III: The Policy

Policy Paper Presentation Presented by: John C.T. Ko Structure of Overall Policy TThe “Act for Establishment & Administration of SIPs” PPlus more than 100 other regulations in 15 categories ““IT Duty-free Law” ““Land Rental Regulation” HHSIP committee handles the application process, only EIA reviewed by local Gov. SSelf-Sustaining Community Special Adm. District under Central Gov. A Duty-free Policy One-Stop Service + sound infrastructure

Policy Paper Presentation Presented by: John C.T. Ko Sustainability Policy  7 key laws é Environmental Impact Assessment Act 1994 é Waste Disposal Act 1997 é Soil & Groundwater Pollution Remediation Act 2000 é Air Pollution Control Act (2002, latest revised) é Water Pollution Control Act (2002, latest revised) é Drinking Water Management Act (amended in 1997) é 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 CriteriaCodeQualitative Description EfficiencyA Effectively reach an optimal balance between economy and sustainability Cost-SavingB Effectively save the government budget expenses SustainabilityC Effectively minimize environmental and social impacts Economic Prospect D Effectively entails the economic benefits for the nation Legal & 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 Effective4 Effective3 Moderately Effective2 Ineffective1 Assumptions (2)

Policy Paper Presentation Presented by: John C.T. Ko  Policy Options Prioritization Index Priority Index Description Numeric Priority Index Highest Priority4 High Priority3 Fairly Priority2 Less Priority1 Assumptions (3)

Policy Paper Presentation Presented by: John C.T. Ko Assumptions (4)  Policy Options Criteria on Weighted Percent Criterion Code Weighted 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)  1 st Step Using the Selection Rating Scale CriteriaOption 1Option 2Option 3Option 4Option 5 A (Efficiency) B (Cost-saving) C (Sustainability) D (Economy) E (Legal & Adm.) Total Score Ranking51242

Policy Paper Presentation Presented by: John C.T. Ko Decision Matrix (2) Criteria Priority index Option 1Option 2Option 3Option 4Option 5 A (Efficiency) B (Cost-saving) C (Sustainability) D (Economy) E (Legal & Adm.) Total Score Ranking51342  2 nd Step Applying Priority Index

Policy Paper Presentation Presented by: John C.T. Ko Decision Matrix (3) Criteria Weight ed % Option 1Option 2Option 3Option 4Option 5 A (Efficiency) 30% B (Cost-saving) 10% C (Sustainability) 30% D (Economy) 20% E (Legal & Adm.) 10% Total Score Ranking51342  3 rd 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 101 The tallest building in the world