Fuel efficiency and emission in China's road transport sector : Induced effect and rebound effect

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

17 Scopus Citations
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  • Jian Chai
  • Ying Yang
  • Shouyang Wang
  • Kin Keung Lai

Related Research Unit(s)


Original languageEnglish
Pages (from-to)188-197
Journal / PublicationTechnological Forecasting and Social Change
Online published15 Jul 2016
Publication statusPublished - Nov 2016


The main objective of this paper is to analysis how endogenous road capacity, in term of an increase in road accessibility and traffic demand (“induced effect”), exogenous efficiency policies and technological progress, in term of an increase in fuel efficiency (“rebound effect”), affect fuel consumption and thereby exhaust emission finally, the empirical estimate a simultaneous equations system of the road traffic demand, fuel consumption, exhaust emission, using the annual data of 1985–2013, we discuss the transmission mechanism of effects caused by road capacity and fuel efficiency policies, and we estimate the induced effect and rebound effect further than the previous studies, and found that the rebound effect and induced effect in China are larger than most studies of the U.S. We also prove the effectiveness of fuel efficiency policies to improve fuel efficiency, however, little help to reduce vehicle emission. In view of the pricing policy, we found that high price of new vehicle cannot inhibit Chinese demand for cars currently, what's more, rising fuel price did not encourage people to purchase energy-saving vehicles in China.

Research Area(s)

  • Fuel efficiency, Induced effect, Policies, Rebound effect, Road traffic system, Vehicle emission