Case 1 : Successful Switch from Leaded Fuel to Unleaded Fuel in Thailand
The switch from leaded to unleaded fuel is a success story for several countries in Asia. Thailand’s case is almost a text-book kind illustration of the use of EMM framework. Once the scientific information of leaded ingestion in children resulting significantly poorer development manifested by lower IQs came to be known in the public realm by newspaper headlines – action of suasive measures in EMM – the desired outcome started to work. Information was made available to public explaining what was happening and why changes should be made (public awareness campaign). As Ross observes, “(s)uch an approach was essential because it would cost money to change the refineries, and thus the cost of unleaded fuel would be more costly (although the costs of diminished intelligence due to the continued use of lead would be much greater). Convincing the people the benefits of the change was an important tool to create acceptance. That is, it was essential for people to understand that the increased cost of unleaded gasoline was less than the increased cost of diminished intelligence. This led people to accept the increased cost of unleaded gasoline*”. The regulatory measures were used to phase out the use of leaded gas over time. The economic measures were used during the transition when both leaded and unleaded fuels were in use. The problem of higher cost of unleaded fuel, hence, user incentive to buy leaded gas was overcome by increasing a tax on leaded fuel (an example of internalizing the negative externality by charging for the polluting cost) and thereby making sure that unleaded fuel cost at least is not higher than the leaded gasoline. The combination of regulatory, economic and suasive measures, thus, led to a relatively quick switch from the leaded to unleaded fuel use in Bangkok.
Source: * William Ross, “Urban Environmental Management: Principles, Professionals Practice, and Professional Education”, Regional Development Dialogue, Vol. 19, No. 1, Spring 1998, pp.143-144.