Improving the energy efficiency of air conditioning systems, which on hot summer days account for up to 40 percent of Shanghai's entire power load, is one of the most effective measures Shanghai could take to decrease energy usage and ease peak power loads. This report by Tongji University analyzes the impact three different policy scenarios would have on air conditioning energy consumption and air conditioning systems' contribution to peak power load and SO2, NOx, CO2, and TSP emissions. On the basis of this analysis, the Tongji University research team recommends several policies that could help Shanghai manage air conditioner energy consumption in a way that limits peak power load and emissions to sustainable levels.