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On December 29, 2014, authorities of Shen- zhen Guangdong Province of South China, one of country’s most industrialized cities, announced a sedan car purchase curb out of expectation. With the new policy, auto buyers have to acquire car plates by lottery system or auction. According to the an- nouncement, 100000 new vehicle plates will be allocated annually for the city in the next five years.

With that, local law enforcement started to calculate sales and stock informations at automobile 4S stores. The new policy was announced at 5:40 p.m., and local residents made a good use of the 20 minutes window before the new rule took effect at 6 p.m. of that day to rush to car dealerships to buy cars. The city started the notary procedures on January 4th, and 6000 reservations were booked up in one single day. Huge amount of prospective residents and car dealers were rushing to notarize car purchase documents before applying for plates.
The restriction policy has caused huge stir and aroused much controversy among the public.
The Blitz of New Rules
News of the cap in the southern metropolis was included in a government notice released on December 29.
Among the measures that took immediate effect, the city banned all vehicles licensed in areas outside Shenzhen from entering four downtown districts during rush hour periods on weekdays unless they are from Hong Kong or Macao.
Starting from 6 p.m. of that very day, new vehicle plates will be allocated annually for the city, including 20000 for electric cars, said Chen Huigang, deputy director of the city’s traffic and transport commission.
The number may be adjusted later based on road capacity and air pollution, Chen said. He also said that half of the plates will be distributed through a lottery system and the other half by auction. In the future, the auction may be connected with carbon emission trading, he said, although he didn’t offer any details on that.
The decision made Shenzhen the seventh Chinese city after Beijing, Shanghai, Guangzhou, Tianjin, Hangzhou and Guiyang to impose restrictions on new-car purchases in order to ease traffic congestion and reduce air pollution.

Shenzhen’s government said the restrictions would be in place for five years but would be subject to revision, pending assessments of traffic and air quality. According to the city government, the number of vehicles has grown by an average of 16% each year over the past five years to 3.14 million by September 2014. The number of new vehicles in the city grew by 550000 units las year. And sedans account for more than 80 percent of all new vehicles. That has raised questions about the latest Shenzhen restriction. Experts say the car restriction is only a temporary measure, and a long-term mechanism is needed to eradicate problems from the root.
“The restriction can only drag on the growth of car numbers and postpone the crush of the transportation system,” said Feng Yinchang, an environment expert with Nankai University.
Feng believed the problem does not lie in the number of cars, but in city planning.
“Car restrictions are not a cure-all for the problems caused by automobiles, such as smog, congestion and city noise,” said Yang Jianhua, director at the research center of the Zhejiang Academy of Social Sciences. Yang said these “city diseases” are shared by many countries, and the most important way to treat them is enhanced public transportation.
Cities need to focus on building complete public transport systems and improving transit service levels, Yang added.
The latest progress is that the Shenzhen municipal government has promised to review its decisions on private car purchases after their legitimacy was challenged by an expert in traffic law.
Gu Dasong, an associate professor at Southeast University, wrote to the Guangdong Provincial Legislative Affairs Office on January 6 to complain about the new rules, according to earlier reports.
He argued that the city government’s decision to change the rules on vehicle purchases without soliciting public opinion was a violation of its own road traffic safety management regulations.
An official from the legislative affairs office said Gu’s comments have been passed to the Shenzhen government for review.

With that, local law enforcement started to calculate sales and stock informations at automobile 4S stores. The new policy was announced at 5:40 p.m., and local residents made a good use of the 20 minutes window before the new rule took effect at 6 p.m. of that day to rush to car dealerships to buy cars. The city started the notary procedures on January 4th, and 6000 reservations were booked up in one single day. Huge amount of prospective residents and car dealers were rushing to notarize car purchase documents before applying for plates.
The restriction policy has caused huge stir and aroused much controversy among the public.
The Blitz of New Rules
News of the cap in the southern metropolis was included in a government notice released on December 29.
Among the measures that took immediate effect, the city banned all vehicles licensed in areas outside Shenzhen from entering four downtown districts during rush hour periods on weekdays unless they are from Hong Kong or Macao.
Starting from 6 p.m. of that very day, new vehicle plates will be allocated annually for the city, including 20000 for electric cars, said Chen Huigang, deputy director of the city’s traffic and transport commission.
The number may be adjusted later based on road capacity and air pollution, Chen said. He also said that half of the plates will be distributed through a lottery system and the other half by auction. In the future, the auction may be connected with carbon emission trading, he said, although he didn’t offer any details on that.
The decision made Shenzhen the seventh Chinese city after Beijing, Shanghai, Guangzhou, Tianjin, Hangzhou and Guiyang to impose restrictions on new-car purchases in order to ease traffic congestion and reduce air pollution.

Shenzhen’s government said the restrictions would be in place for five years but would be subject to revision, pending assessments of traffic and air quality. According to the city government, the number of vehicles has grown by an average of 16% each year over the past five years to 3.14 million by September 2014. The number of new vehicles in the city grew by 550000 units las year. And sedans account for more than 80 percent of all new vehicles. That has raised questions about the latest Shenzhen restriction. Experts say the car restriction is only a temporary measure, and a long-term mechanism is needed to eradicate problems from the root.
“The restriction can only drag on the growth of car numbers and postpone the crush of the transportation system,” said Feng Yinchang, an environment expert with Nankai University.
Feng believed the problem does not lie in the number of cars, but in city planning.
“Car restrictions are not a cure-all for the problems caused by automobiles, such as smog, congestion and city noise,” said Yang Jianhua, director at the research center of the Zhejiang Academy of Social Sciences. Yang said these “city diseases” are shared by many countries, and the most important way to treat them is enhanced public transportation.
Cities need to focus on building complete public transport systems and improving transit service levels, Yang added.
The latest progress is that the Shenzhen municipal government has promised to review its decisions on private car purchases after their legitimacy was challenged by an expert in traffic law.
Gu Dasong, an associate professor at Southeast University, wrote to the Guangdong Provincial Legislative Affairs Office on January 6 to complain about the new rules, according to earlier reports.
He argued that the city government’s decision to change the rules on vehicle purchases without soliciting public opinion was a violation of its own road traffic safety management regulations.
An official from the legislative affairs office said Gu’s comments have been passed to the Shenzhen government for review.