Integrating Environmental Considerations into the Economic Decision-Making Process
Modalities for environmental assessments
East and Southeast Asia China (Shanghai) Index
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III. ENVIRONMENT MONITORING AND URBAN PLANNING

[ III-A | III-B | III-C | III-D | III-E | III-F | III-G | III-H ]

E. Adjustment of industrial allocation and harnessing of urban environment in Shanghai

1. Adjustment of industrial allocation of the inner ring and the outer ring districts in the centre

(a) The inner ring district: all enterprises to be basically evacuated and commercial or financial centres built

Urban land usage in the inner ring district is not suited to the development of industry. All enterprises except a few urban service industries should be evacuated. There are 1,059 multi-storied enterprises and street industries in the inner ring district which are mainly labour-intensive. 546 enterprises are not appropriate urban industries and are to be evacuated so that industrial land usage will decrease from 22 per cent to 5 per cent. This should provide good spatial conditions for developing the third industry. The multi-storied industrial groups along the Huangpu River are especially worth discussing. These multi-storied buildings were constructed by foreign enterprises during the settlement period when this area was similar to the present central commercial district and was well-located. The enterprises were mostly of a financial, business or commercial nature. After 1949, these functions of Shanghai changed and the proportion of these third industry enterprises declined sharply, with the original banks, shops and culture installations being replaced by plants or government enterprises. This irrational structure of land usage ended after 1990s and these multi-storied buildings were able to regained their former grandeur. Some organization, including government office and plants, returned these valuable land resources through land exchanges. The value of these land resources is expected to make a substantial contribution to the renewal and revamping of the urban functions.

(b) The outer ring district: 8 industrial areas along the borders of the central city are focal points and enterprises are distributed to Pudong New Area according to the plan

Eight industrial areas including Gacqiao, Wujiaochang, Penpu, Beixinjing, Caohejing, Changqiao, Guojiadu and Qingningsi are 11 -12 km from the central city on average and have become firmly established over the past 30 years. Because the location of these industrial areas is limited by vegetable plots of suburbs, television stations, net space of airports and so on, many industrial areas tended to saturate, land reserved for industry decreased, and some installations including offering and draining water and disposal of "the three wastes" became very limited. So, new large industrial projects are prohibited in the industrial areas. Some enterprises are to be remolded and gradually distributed to Pudong New Area according to the plan.

2. Adjustment of industrial allocation and harnessing of environmnental pollution of industrial blocks in the middle ring district

(a) Characteristics and environmental problems of the industrial blocks

The whole industry of the middle ring district occupies a very important position in the industrial economy of Shanghai. Spatial organizing forms of enterprises amount to 70 mainly industrial blocks and points. Industrial blocks have formed 4 concentrated industrial areas encircling the central district of Shanghai.

Fig48

Figure 48. The industrial economic position of 70 industrial blocks of the middle ring district in Shanghai, 1987

The formation of industrial blocks in the middle district was the result of gradual industrial and urban development. Not only was there a lack of plan, but also the internal structure of each block lacked planning, so that the manufacturing and production processes had very complicated characteristics as follows:

  1. Interlocked mixture of new and old enterprises;
  2. Interlocked mixture of large- and medium-size industrial enterprises;
  3. Interlocked mixture of enterprises of different natures, techniques and outputs;
  4. Alternated mixture of industrial land, settlement land and other.

70 industrial blocks fully encircle the whole of Shanghai and are basically distributed along rivers. These have been constant sources of serious pollution for Shanghai over a long period of time. Noise, smoky dust, and dangerous or poisonous gases from the plants seriously harmed the health of residents. According to statistics of the first half years from 1986 to 1989, the industrial output value of the 70 industrial blocks was about 25 per cent of the whole city, but the number of environmental pollution accidents and penalties accounted for 71 per cent of the whole Shanghai. It is essential to control pollution in the industrial blocks. The means of control should be in accordance with the objective laws of urban development while the city must provide the necessary guidance and regulations. On one hand, both basic transformation of enterprises are promoted; on the other hand, optimum association of urban land usage is also promoted to make the urban functions suitable for needs of urban development. So, Shanghai organized a great quantity of manpower and material resources to investigate the pollution and economic condition of every plant in the 70 industrial blocks and submitted "The environmental pollution situation of urban industrial blocks in the Shanghai urban area and study on preliminary prevention". This report may provide scientific bases for making decision on adjusting industrial structure and products structure and harnessing main pollution sources.

(b) Model of comprehensive evaluation of environment-economy

Controlling environmental pollution and improving the urban situation in Shanghai not only promotes economic growth, but also gradually reduces the urban pollution of "the three wastes" of industries, which in turn effectively improves the ecological environment of the whole city. Thus, the environment and economy can be analyzed and evaluated as a unified system synthetically. A model may be built with seven indexes of environment-economy:

  1. Waste water volume per 10 thousand yuan industrial output value in 1987 (tons)
  2. Waste gas volume per 10 thousand yuan industrial output value in 1987 (standard m3)
  3. Waste residue volume per 10 thousand yuan industrial output value in 1987 (tons)
  4. Disposal cost of “the three wastes” per 10 thousand yuan industrial output value in 1987 (yuan) waste water volume in 1987 industrial output value in 1987
  5. Growth ratio of waste water

    Bwater(%) = (wastewater volume in 1987 / wastewater volume in 1985) x (industrial output in 1987 / industrial output in 1985) x 100
  6. Growth ratio of waste gas

    Bgas(%) =(waste gas volume in 1987 / waste gas volume in 1985) x (industrial output in 1987 / industrial output in 1985) x 100
  7. Growth ratio of waste residue

    Bresidue(%) = (waste residue volume in 1987 / waste residue volume in 1985) x ( industrial output in 1987 / industrial output in 1985) x 100

Based on the above seven indexes calculations are made for each industrial district. After standardization, we get the comprehensive index of environment-economy (Jsum) of each industrial district with the formula:

Jsum = nJ2 ..................(n is the total number of the indices which take part in the calculation)

This comprehensive index of environment-economy is an index for comparing the 70 industrial districts. Meanwhile, the index can show the relation of industrial production and "the three wastes" of each industrial district and reflect the relation of output value growth and drainage volume of "the three wastes". In fact, comprehensive index of environment-economy(Jsum) may reveal the internal relationship between the environmental pollution of each enterprise or industrial area and its industrial economic development. If the comprehensive index of environment-economy (Jsum) is low, the degree to which the industrial production of industrial districts affects environmental pollution is also low and the industrial output value growth will not lead to significant increases in “the three wastes" volume. By contrast, a higher comprehensive index of environment-economy (Jsum) shows that the industrial production of industrial districts clearly affects environmental pollution and the industrial output value growth will lead to substantial increases in "the three wastes” volume.

(c) Comprehensive evaluation of environment-economy of 70 industrial blocks

According to the standard of Jsum, the 70 districts can be divided into three types.

The first type: Jsum is less than 80. 41 industrial districts are of this type. Their industrial production growth only lightly affects regional environment. In some of these districts, if only a few individual enterprises are adjusted, environmental pollution can be largely solved.

The second type: Jsum is 80~100 which is about the mean for the whole city. 17 industrial districts fall into this category. Their industrial production growth obviously affects regional environment. Those enterprises with low economic benefits are very often the ones draining the largest amount of "the three wastes". Environmental pollution can only be improved under conditions of effective and emphatic adjustment or control.

The third type: Jsum is higher than 100. 12 industrial districts are of this type. Their industrial production growth seriously affects regional environment leading to a rapid increase in "the three wastes'' volume. Some of these have low economic benefits and are responsible for large quantities of drainage. It is essential to adopt stronger measures, including adjustments in the distribution and structure and harnessing "the three wastes". Some industrial districts are not suitable to support the accumulation of such enterprises and their city functions should be gradually changed.

(d) Steps for adjusting the industrial allocation of 70 industrial blocks in the middle ring district

(1) The industrial districts whose industrial features are gradually transformed by the adjustment

This type includes 19 industrial blocks whose internal industrial structures are simple and have the industrial structure of a leading industry. If this structure is adjusted suitably, industrial features can take shape. Those enterprises causing serious pollution by "the three wastes" and not conforming to the leading industrial departments should be adjusted by moving or transforming their production facilities. The vacant plots which such enterprises leave can be given over to industries able to develop regional specialized production in those fields where the greatest demand exists.

According to this scheme, 22 enterprises (including seven branches or workshops) of this type need to be adjusted, which comprise six engineering industrial enterprises, two chemical enterprises, five textile, one medical, one food production and four other industrial enterprises. The total output value of these enterprises amounts to 709,666 million yuan. By way of adjustment, waste gas can be reduced by 501,474,000 standard m3 per year, waste water reduced by 6,290,000 tons per year and waste residues can also be decreased by 16,600 tons per year respectively.

(2) The districts whose industrial growth can be maintained within the conditions of enhancing industrial pollution control. 24 industrial blocks are of this type, where the main drawback is serious pollution by "the three wastes". According to available statistics, the industrial output value of these streets amounts to 36.3 per cent of that of the 70 industrial blocks, the drainage volume of waste gas is 25.8 per cent, volume of waste water is 55.9 per cent and the volume of waste residue is 32.2 per cent. Some large-scale enterprises in these districts seriously pollute the environment with “the three wastes". These -enterprises are not only large-scale, but also produce valuable economic benefits. A number of- enterprises are able to develop in these blocks, so industrial pollution controls should be improved, especially in respect of some of the large- and medium-sized enterprises.

The statistics for 24 industrial blocks show that 26 enterprises (including four plants or workshops) need to be adjusted, which include four engineering industrial enterprises, seven chemical enterprises, five metallurgical enterprises, six construction materials enterprises, one medical enterprise, one paper-making enterprise, one leather-making enterprise and one other enterprise. The combined output value of these enterprises totals 712,764,000 yuan. Here, waste gas could be reduced by 869,395,000 standard m3 per year, waste water by l1,129,100 tons per year and waste residues by 73,300 tons per year

(3) The districts whose suitability can be gradually changed for development in the urban area after moving some industrial enterprises out.

19 industrial blocks are of this type, whose internal industrial structures are more complicated. A considerable number of these enterprises are suitable to be developed in the central city, but others less suitable should be moved.

(4) The districts whose harness development should be controlled.

There are three industrial blocks mainly located in the important sectors of this city or neighbouring residential areas. "The three wastes" of industries have a strong adverse impact on the whole city and people, but drainage of “the three wastes" is mainly restricted to several large enterprises which are of large-scale economic importance. It is impossible for these enterprises to be moved in the near future. So, harnessing "the three wastes" of the large- and medium-scale enterprises should be enhanced in the process of dredging these types of industrial blocks and the scale of development should be controlled.

(5) The districts whose functions should be changed and where industrial enterprises should be moved out.

Five industrial blocks are of this type and are located in important sectors of the city or within the circle of residential areas so that the contrast between the surroundings and industrial production are quite obvious. Because of the serious nature of “the three wastes” of the internal enterprises, a shortage of harnessing conditions in the streets and irrational industrial structure, a great number of enterprises are not suitable to be developed in the central city. Those enterprises of this type should be moved or evacuated, with only some industrial points slightly interfering with the city or environment being allowed to remain. Industrial districts should be transformed to other functional ones or develop the third industry.

30 industrial enterprises (including 4 branches or workshops) in the five industrial blocks of this type need to be moved, which include 9 engineering enterprises, 2 chemical enterprises, 11 textile enterprises, 3 food-production enterprises, 1 metallurgical enterprise, 1 leather-making enterprise and 3 other enterprises. The total output value of these enterprises amounts to 578.214 million yuan. In this way, waste gas can be reduced by 595.309 million standard m3 per year, waste water by 6,780,900 tons per year and waste residues can be decreased by 24,700 tons per year. Meanwhile, 11 enterprises including knitting, weaving, watch-making, radio and daily chemical production and so on can remain.

If 70 industrial blocks in the urban area can be controlled as outlined above, 138 enterprises (including 28 branches or workshops) need to be adjusted, which include 29 metallurgical enterprises, 27 engineering enterprises, 27 chemical enterprises, 17 textile enterprises, 10 construction materials enterprises, 7 paper--making enterprises, 4 leather-making enterprises, 4 food-production enterprises, 2 medical enterprises and 11 other enterprises. The total output value of these enterprises is 3,472.761 million yuan and the vacant plots have an area of 2,061,600 sq m. Meanwhile, waste gas can be reduced by 5,880.518 million standard m3 per year, waste water by 52,560,200 tons per year and waste residues by 214,400 tons per year, which represent 24.63 per cent, 27.41 per cent and 27.64 per cent of the total drainage volume of the 70 industrial blocks respectively. Given the pollution harnessing in the districts of the second type and some harnessing and transformation of all enterprises, the three waste pollutants of the 70 industrial blocks can be decreased further.

What is contained above is only a summary introduction to the first group of studies on government decisions - "The environmental pollution situation of the industrial blocks in the Shanghai urban area and the study on preliminary prevention and harnessing". This was done in order to implement the State Council's response to the overall planning of Shanghai in 1980s, to speed up urban environmental construction and to adjust the city allocation as well as to harmonize the relationship between controlling industrial pollution and the need for urban construction and economic development. The preventive countermeasures provided by the study are being adopted in the planning and construction as well as management of Shanghai, and the results of the environmental harnessing measures, policies and actions is very obvious. The contrast with analyses for 1985, 1986 and 1987 fully confirm the facts above.

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