WELFARE ANALYSIS OF THE VEHICLE QUOTA SYSTEM IN CHINA

• 成果类型: Article
• 署名作者: Xiao, Junji; Zhou, Xiaolan; Hu, Wei-Min
• 署名单位: Chinese University of Hong Kong; East China Normal University; Shanghai University of Finance & Economics; National Chengchi University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12229
• 发表日期: 2017
• 页码: 617-650
• 关键词: quality change; UNITED-STATES; emissions; singapore; policies; equilibrium; experience; demand; TRADE; urban

摘要

This article presents a welfare analysis of the vehicle quota system of Shanghai, China. The empirical findings suggest that the quota system leads to both welfare loss as a result of reduction in vehicle transactions and welfare gain because of less externality of auto consumption. The net effect depends on the shadow price of the marginal externality, the assumption of vehicle lifetime, and market conditions such as consumers' intrinsic preference for vehicles. Compared to a progressive tax system, the quota system is less effective in vehicle control but more efficient in improving social welfare.