Emission regulation in mainland China and impact on vehicle scrappage volume

Insights
Policy and Regulation

As mainland China intensifies its war on air pollution, we analyze the impact of vehicle emission regulation on scrappage norms and evaluate a case for revival of its environmental labeling policy

China, the world’s largest auto market, has for long grappled with air pollution. Many of its key cities such as Shanghai, Beijing, Guangzhou, and Shenzhen have seen air quality deteriorate over the years. A rising number of vehicles on its roads is seen as one of the main factors contributing to the air pollution. Emissions from around 6.2 million vehicles were responsible for 45% of Beijing’s concentration of small, breathable particles known as PM2.5, a key indicator of air pollution, according to a 2019 report by China Daily, quoting data from the Chinese government.

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