1. 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

2. 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

3. Part I: Introduction

4. 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

5. 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

6. Policy Paper Presentation Presented by: John C.T. Ko Background of the Study (2)

7. Policy Paper Presentation Presented by: John C.T. Ko Background of the Study (3) Sustainability Problems

8. 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

9. 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

10. 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

11. 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

12. Part II: The Environmental & Social Impacts of the HSIP

13. 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

14. 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

15. Part III: The Policy

16. 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

17. 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

18. Part IV: Policy Issues

19. 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

20. Part V: Policy Options

21. 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 ?

22. 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

23. 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)

24. 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)

25. 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%

26. 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) 24324 B (Cost-saving) 32341 C (Sustainability) 24334 D (Economy) 43333 E (Legal & Adm.) 24323 Total Score1317151415 Ranking51242

27. Policy Paper Presentation Presented by: John C.T. Ko Decision Matrix (2) Criteria Priority index Option 1Option 2Option 3Option 4Option 5 A (Efficiency) 481612816 B (Cost-saving) 264682 C (Sustainability) 481612 16 D (Economy) 3129999 E (Legal & Adm.) 248646 Total Score3853454149 Ranking51342  2 nd Step Applying Priority Index

28. Policy Paper Presentation Presented by: John C.T. Ko Decision Matrix (3) Criteria Weight ed % Option 1Option 2Option 3Option 4Option 5 A (Efficiency) 30%2.44.83.62.44.8 B (Cost-saving) 10%0.60.40.60.80.2 C (Sustainability) 30%2.44.83.6 4.8 D (Economy) 20%2.41.8 E (Legal & Adm.) 10%0.40.80.60.40.6 Total Score8.212.610.29.012.2 Ranking51342  3 rd Step Applying Weighted Percentage

29. Part VI: Conclusion & Recommendations

30. 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

31. 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

32. Policy Paper Presentation Presented by: John C.T. Ko Taipei 101 The tallest building in the world