East China's Hangzhou city announced on late Tuesday that it will restrict issuance of new car licenses, in a bid to ease traffic congestion and combat air pollution. The city government will issue new plates via auction and lottery from Wednesday.
It is the sixth city in China announcing restrictions on the issuance of new car plates. Hangzhou announced on Tuesday the market curb in a bid to clamp down on car ownership.
only 80,000 car plates will be issued every year, with 80 percent of that quota chosen by lottery and the remaining 20 percent auctioned.
"This city, starting from the start of March 26th 2014, and under the principles of transparency, fairness and justice, will operate a new car ownership quota system. New cars will only be issued via lottery or auction," said Fan Jianjun, head of Transportation Bureau of Hangzhou.
Hangzhou, a top tourist destination, has frequently been choked by smog. Car emission is a key factor. In the meantime, the city's lagging transportation system is heavily burdened - 2.6 million motor vehicles have registered by the end of February, with 270,000 new registrations in 2013 alone.
The average speed of rush hour traffic is below 20 kilometers per hour, an international warning level for congestion.
But experts say the effect on easing traffic jam and reducing air pollution hasn't been significant in cities that already have similar curbs. They suggest that the key solution is to transform the model of urban development and use the market approach, instead of administrative intervention.
