Tax would help building clean cities of tomorrow: analysis

Although air pollution has been one of the big challenges of cities in the modern era, these problems can be solved, and many solutions have been offered for them. Once many cities were considered as polluted, they could adopt managerial strategies to handle this issue. For example, Mexico City was polluted in 1992. Today, it is one of the cleanest cities. Air pollution has destructive effects on people’s health and quality of life. According to a scientific research, the cost of air pollution was more than $1.9bn in Tehran in 2011.

Yet, it seems that tax on private cars may be considered as an important step in reducing air pollution as well as increase in urban sustainable revenues. As mayors announced not long ago, only $1.2bn are financed from $5.3bn of Tehran Municipality from sustainable revenues. This shows that current city management locks cannot be unlocked with old keys.

Public transport has a crucial role in increasing air pollution since more than 64 per cent of nitrogen, 29 per cent of sulphur oxides, 27.5 per cent of CO2, and nearly 80 per cent of aerosols are the outcome of incomplete combustion in engine. For example, more than 50 per cent of CO and 41 per cent of aerosols are derived from private cars.

It should not be forgotten that collecting tax might create and solve two major urban challenges since it would improve the motivation to use public transport. On the other hand, it creates financial resources that by using which municipalities can increase MRT development.

The cost of building one kilometre of underground train has been estimated to be $43- 66mn in Iran. Undoubtedly, current resources of city management cannot finance this amounts easily. The government does not have adequate budget to finance urban construction projects because of plummeting oil prices. For example, only $67mn was allocated for development of Tehran’s metro in 2015 which would only finance building one or two kilometres of metro.

If we want to build cities of the future, we should adopt new policies. Tehran could enjoy 365 days of clean air. This will be achieved when city management and government converge on a common objective.

Seyyed Mohsen Tabatabaei Mozdabadi is the secretary of Iran Urban Economics Scientific Association.