By the Research Department of Industrial Economy, the DRC and compiled by Shi Yaodong

Research Report No 121, 2013

Abstract:

To solve the problems raised by the surging number of automobiles in China, including traffic jams, energy consumption and emissions, it is critical to innovate systems and mechanisms.

First, it is important to maintain the relationship between the government and market, the relationship between centralized and decentralized decision-making, and the relationship between public interest and private interest.

Meanwhile, the supervisory mechanism should be improved. Second, China should solve problems caused by conflicts of interest. The government needs to pay attention to side effects that may be caused by long-term restriction policies, such as the car purchase quotas.

The country will also attach importance to the sustainable development of the public transportation system, as well as the integration of city planning and the development of electric transportation systems, to realize low-carbon and electronic urban traffic.