Congestion and Pollution in Chinese Cities

Abstract

The rapid urbanization of the People’s Republic of China (PRC) is assumed to generate greater economic benefits in terms of income, but also result in greater social costs in terms of negative externalities. This chapter focuses on the direct relationship between city growth and the urban diseases of congestion and pollution in the PRC. The ‘demand–supply–government’ framework is employed to analyse the sources and consequences of these major urban diseases. The roles of market power and political power in congestion and pollution mitigation are also discussed in this chapter.