The high rates of economic activity and environmental degradation in Asia demand the implementation of creative and cost-effective environmental policy instruments that provide polluters with more flexibility to find least-cost solutions to pollution reduction. Despite their many theoretical advantages, the use of market-based instruments (MBIs) is a relatively recent phenomenon in Asia, partly due to policymakers being unfamiliar with MBIs and countries lacking the institutional capacity to implement and enforce them.

Many cities worldwide have considered vehicle restriction policies to curb proliferating problems related to traffic and pollution.

At the beginning of 2011, Beijing became the first city to allocate vehicle license plates using a lottery. We provide a background on Beijing׳s lottery and analyze its short-term effects. We find that growth in new vehicle registrations has been sharply curtailed. However, this policy may not reduce fuel consumption as much as expected.

Access related discussion paper here.

A driving restriction policy, as one of the control-and-command rationing measures, is a politically acceptable policy tool to address traffic congestion and air pollution in some countries and cities in the world. Beijing is the first city in China to implement this policy.

Many cities worldwide have considered vehicle restriction policies to curb proliferating problems of traffic and pollution.

At the beginning of 2011, Beijing became the first city to allocate vehicle license plates using a lottery. We provide background on Beijing’s lottery, and analyze its short-term effects. We find that vehicle growth has been sharply curtailed, and congestion has been reduced.  However, this policy may not reduce fuel consumption as much as expected.

This disucssion paper has been peer-reviewed. Access it here.

A driving restriction policy, as a control-and-command rationing measure, is a politically acceptable policy tool to address traffic congestion and air pollution in some countries and cities. Beijing was the first city in China to implement this policy. A one-day-a-week driving restriction scheme was expected to take 20 percent of cars off the road every weekday.

Using individual travel diary data collected before and after the rail transit coverage expansion in urban Beijing, this paper estimates the impact of rail accessibility improvement on the usage of rail transit, automobiles, buses, walking, and bicycling, measured as percent distance traveled by each mode in an individual trip.

Fuel Taxes and the Poor challenges the conventional wisdom that gasoline taxation, an important and much-debated instrument of climate policy, has a disproportionately detrimental effect on poor people.

Fuel Taxes and the Poor, The Distributional Effects of Gasoline Taxation and Their Implications for Climate Policy. Edited By Thomas Sterner. Published by RFF Press with Environment for Development initiative.