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Should China Implement Congestion Pricing?

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  • Shunfeng Song

Abstract

Over the past two decades, China has experienced a dramatic increase in auto ownership and use, with the number of privately owned vehicles increasing more than 70 folds in twenty years, from 0.82 million in 1990 to 59.39 million in 2010. Urban roads in major Chinese cities have, thus, become much more congested. Congestion pricing, theoretically, helps to internalize traffic externalities and reduce congestion. Practically, it has been implemented in a number of countries. This article presents the economic theory of congestion pricing and discusses international practices of congestion pricing. Based on the theory and practices, the article proposes implications for China and argues that China should consider implementing congestion pricing to combat traffic congestion in major cities.

Suggested Citation

  • Shunfeng Song, 2015. "Should China Implement Congestion Pricing?," Chinese Economy, Taylor & Francis Journals, vol. 48(1), pages 57-67, January.
  • Handle: RePEc:mes:chinec:v:48:y:2015:i:1:p:57-67
    DOI: 10.1080/10971475.2015.993200
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    Cited by:

    1. Bhavna Singichetti & Adam Dodd & Jamie L. Conklin & Kristen Hassmiller Lich & Nasim S. Sabounchi & Rebecca B. Naumann, 2022. "Trends and Insights from Transportation Congestion Pricing Policy Research: A Bibliometric Analysis," IJERPH, MDPI, vol. 19(12), pages 1-13, June.
    2. Xinhua Mao & Jiahua Gan & Xilong Zhao, 2019. "Debt Risk Evaluation of Toll Freeways in Mainland China Using the Grey Approach," Sustainability, MDPI, vol. 11(5), pages 1-17, March.

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