Globalization of the automobile industry in China: Dynamics and barriers in the greening of road transportation

Abstract

This article describes the state of the automobile industry and urban road transportation management in China. It reviews how the automobile industry is evolving to respond to challenges in economic development, environmental regulations, and technological change. The dynamics and barriers resulting from technological change of the automobile in response to reduction of exhaust emissions and energy-efficiency improvement are analyzed. It is argued that consideration of externality costs should be integrated in automobile industrial policymaking and transport management. This paper questions the current government policy of encouraging private car ownership, and suggests that improvement in public transportation systems and stronger emissions control would be relevant to China’s drive toward sustainable transportation development.