Does bike-sharing reduce traffic congestion? Evidence from three mega-cities in China

Abstract

This study employs a regression discontinuity design to systematically examine the governance effect of bike-sharing on urban traffic congestion, utilizing city-level data from Beijing, Shanghai, and Wuhan in China between 2016 and 2018. We discover that the introduction of bike-sharing services significantly mitigates traffic congestion in the short term. Our heterogeneity analysis reveals that the initial deployment of shared bicycles primarily alleviates urban congestion, while additional deployments have a limited impact. Further, mechanism test analysis demonstrates that bike-sharing leads to increased metro ridership in these cities, effectively explaining the reduction in road congestion. This study underscores the pivotal role of bike-sharing services in easing urban traffic congestion and provides vital policy insights for enhancing traffic management strategies in Chinese cities.