The Implementation and Welfare Effect of Vehicle Quantity Regulation Policy: A Case Study of Beijing Vehicle Quota System

Hanying QI


The quantity regulation of license plates for small passenger cars is a typical public policy of government intervention in transportation market. The goal of the policy is to control the number of vehicles in a region, with the main purpose of controlling the growth rate of small passenger cars and reduce traffic congestion. This paper takes Beijing as an example to analyze the implementation effect and welfare effect of the vehicle quantity regulation. The analysis results show that the policy implementation is different from Singapore. It can control the rapid growth of small passenger cars in a city from a macro perspective, but it cannot control the growth of vehicles on the road for a city, so it is limited to reduce traffic congestion. On the other hand, the policy of controlling the number of small passenger cars will bring a series of welfare losses. In this regard, this paper puts forward suggestions of improving policy design, increasing supporting policy measures, strengthening urban public transport construction and changing residents’ travel mode to enhance the implementation effect of the policy.


Vehicle quota system; Regulation by quantities; Policy implementation effect; Welfare effects

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