Shanghai is to pay subsidies for people who replace cars and trucks with more environment-friendly models in a bid to clean up the city air and boost the local economy.

It is part of a series of government measures to improve the environment in advance of the Shanghai 2010 World Expo, officials said on Sunday.

From today until April 30 next year, anyone who trades in vehicles at national level I emission standard or below for those meeting national IV standard will get an average of 5,000 yuan (US$732).

The amount will vary according to the size of the vehicles and how old they are. To qualify, vehicles must have been registered before the end of 2002.

As an example, if a small passenger car was registered before 1998, the owner can get 4,500 yuan when buying a new one meeting national IV standard, equivalent to second-highest standard in Europe.

The subsidy rises to 5,000 yuan if the car was registered between 1999 and 2000 and 5,500 yuan if registered between 2001 and 2002.

People can go to the city government's official Website (www.shanghai.gov.cn) or call hotline 12369 for more details.

City officials expect the measure to get rid of 50,000 old, polluting vehicles by April next year, reducing vehicle emissions by 8 percentage points and boosting spending on cars by 7 billion yuan.

"We hope such an incentive can accelerate the pace of upgrading of polluting vehicles and further raise people's awareness of environmental protection," said Zhang Xinsheng, vice chairman of the Shanghai Commerce Commission.

Last week Shanghai announced it was expanding its ban on cars and trucks which do not meet national level I emission standard. Such vehicles will no longer be allowed within the Middle Ring Road from today. Previously they were only banned within the Inner Ring Road between 7am and 8pm.

The city is estimated to have about 334,000 vehicles that just pass the nation's lowest emission test or have failed to meet it.

(Shanghai Daily June 1, 2009)