To improve air quality in the city, the Beijing government decided to focus on developing a public transport plan for the new century and launched a detailed project with a focus on the Mass Rapid Transit System (MRTS). The programme also relies on integration with public bus service, subway and light railway. The plan was developed in 1998 and involved the city government as well as the Urban Research and Planning Institute. Its main objectives were to create a good transport system in time to host the 2008 Olympics, to improve the efficiency of urban transport in Beijing and to create a service accepted by the public. The development of a public transport system required the integration of some measures as following.

• In the effort to create a well-designed city planning programme with public transport as its top priority, an international bidding system to modify the existing MRTS construction plan was implemented;
• The programme allowed for public involvement in price-setting as an economic instrument. Although bus and subway fares are decided based on cost, the public was able to participate in the process;
• Competition was introduced in the provision of public transport by the private sector.

Some impacts of the programme have been identified. These include improved air quality, reduced downtown traffic congestion, reduced oil consumption because of the operation of the MRTS and economic development along the MRTS line. However, the development of the MRTS involved high construction costs and substantial investments. Two ways to solve these problems were seen to be lowering construction costs through institutional and technological innovations and raising funds through innovative financing. The drive to improve Beijing’s air quality was stimulated by its hosting the 2008 Olympics. Some observers claimed that the city’s efforts had been exaggerated and were only public relations devices to coincide with the games; however, a 2009 report suggests that Beijing has not relaxed its drive to improve the quality of its air. A variety of measures, including phasing out of high polluting vehicles, discounting car loans to purchasers of green label cars and introducing cleaner buses have been implemented. As a result of the programme, urban air quality has improved as demonstrated by the gradual reduction of NOx and CO over the years despite a gradual increase of number of vehicles in the city. Case study courtesy of the UNEP Publication, Reducing Emissions from Private Cars: Incentive measures for behavioural change.