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Bidding to drive: Car license auction policy in Shanghai and its public acceptance

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  • Chen, Xiaojie
  • Zhao, Jinhua

Abstract

Increased automobile ownership and use in China over the last two decades has increased energy consumption, worsened air pollution, and exacerbated congestion. However, the countrywide growth in car ownership conceals great variation among cities. For example, Shanghai and Beijing each had about 2 million motor vehicles in 2004, but by 2010, Beijing had 4.8 million motor vehicles whereas Shanghai had only 3.1 million. Among the factors contributing to this divergence is Shanghai’s vehicle control policy, which uses monthly license auctions to limit the number of new cars. The policy appears to be effective: in addition to dampening growth in car ownership, it generates annual revenues up to 5 billion CNY (800 million USD). But, despite these apparent successes, the degree to which the public accepts this policy is unknown.

Suggested Citation

  • Chen, Xiaojie & Zhao, Jinhua, 2013. "Bidding to drive: Car license auction policy in Shanghai and its public acceptance," Transport Policy, Elsevier, vol. 27(C), pages 39-52.
    • Handle: RePEc:eee:trapol:v:27:y:2013:i:c:p:39-52
    DOI: 10.1016/j.tranpol.2012.11.016
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    References listed on IDEAS

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