The Impact of Purchase Restriction Policy on Car Ownership in China's Four Major Cities

Abstract

With the improvement of living standards, the demand for residents' travel has grown rapidly. At present, China has surpassed the U.S. to become the world's largest vehicle sales country. By the end of 2018, there had been over 200 million private passenger cars in China. Meanwhile, the increase in the number of cars has also brought a series of other problems: energy consumption, air pollution, traffic congestion, etc. Therefore, some first-tier cities have successively introduced motor vehicle purchase restriction policies to constrain the surge of local private cars. However, existing researches have overemphasized the factors that promote the development of China's motor vehicle market and ignored the importance of the purchase restriction policies. In this study, policies in Beijing, Tianjin, Shanghai, and Guangzhou are introduced, and their impacts on local private passenger car stock are analyzed. The results indicate that purchase restriction policies kept the car ownership per thousand people in these cities in a relatively stable level with growing economy. Therefore, as the number of cities with restriction policies increases, it is necessary to take those policies into consideration in the forecast of possession. Meanwhile, the local governments should still think over policy contents from more aspects, like number of issued plates every year, special measures for new energy vehicles, and travel demand of residents.