Economic threat
       Anthony Hedley, a medical doctor and professor at the University of Hong Kong, added: “Using more stringent guidelines will just push the air-pollution index much higher—off the scale. It’s politically unacceptable for top government officials.”
       “To compete in Asia, and the world, Hong Kong needs to be able to attract foreign talent and retain local expertise,” said William Barron, an environmental economist and a visiting scholar at Hong Kong University of Science and Technology. “The talent Hong Kong needs to thrive won’t stay if it can’t breathe.”
       Hong Kong it seems more interested in debating where the bad air comes from than addressing the problem. Some experts say 30 percent of pollution comes from China and that Hong Kong produces 70 percent; others think it’s 20/80.

Getting rich polluting
       This is a free economy indeed; Hong Kong businesspeople can get rich off the mainland’s cheap labor and weak environmental standards, while polluting Hong Kong. Yet they risk cannibalizing business at home with the 70,000 factories they operate on the mainland. What good is making loads of cash if pollution in Hong Kong is so bad your kids can’t go outside?
       Donald Tsang, Hong Kong’s chief executive, seemed to suggest as much last month when he said: “You breathe that air in Hong Kong, you drink that water in Hong Kong. So those 70,000 factories, if they got down to it and clean up their act, it would be a tremendous help to ourselves.”
       The mainland’s pollution challenges are far more daunting. Nothing captures the tension between China’s economic rise and the country’s social stability as much as the environment does.
       Hong Kong companies are being asked to sign a “Clean Air Charter” to reduce air pollution. The trouble is that the measures are voluntary. Hong Kong should compel companies to provide emissions data regularly and increase energy efficiency. It’s only fair that those getting rich polluting Hong Kong help pay to clean it up.

Private sector’s role
       Admittedly, Hong Kong’s bad-air challenge is unique. Aside from its proximity to China, its traffic density is among the world’s highest, and so many skyscrapers in close proximity creates a “street canyon effect,” trapping pollutants.
       Resistance from the private sector doesn’t help. When the government encourages using environmentally friendly fuels, business leaders “just turn their heads from side to side,” said Roy Tang, deputy director of Hong Kong’s Environmental Protection Department.
       That just means the government needs to be more assertive. It shares very valid concerns over rising medical costs, lost productivity and decreasing competitiveness with regional centers such as Singapore.

Freedom’s costs
       Greater cooperation with mainland officials is also important. “This problem is much bigger than just this city,” said Christine Loh, head of local public-policy think tank Civic Exchange.
       Economists should be factoring in the costs of foul air, including higher labor outlays. Not only will companies need to pay more to attract foreign talent, but employers may face demands for hardship remuneration for working in the city. The tourism industry will increasingly be at risk, too.
       You really have to wonder what good it is being the freest economy if you need a gasmask to enjoy it.