Le Xiaohui, Lin Xiongbin, Yang Jiawen

Keywords： Car Plate Restriction; Economic Analysis; Social Benefits Analysis

Abstract：

In response to rapid motorization and severe traffic congestion, a few cities in China have adopted policies to restrict car ownership. Little work however has been done to evaluate the social benefit of such policies. This paper uses economic models to analyze the social benefits of different versions of vehicle plate restriction policies. It concludes that the plate auction system yields a higher social benefit than the hybrid one, which in turn higher than the lottery system. But social equity should also be taken into consideration in policies. In order to improve social benefit, city governments should prioritize auction and pay more attention to policy details at the same time.

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