Does bicycle sharing reduce traffic congestion? Evidence from mega-cities in China

Abstract

Abstract The development of public transportation is considered as an effective measure to solve the current urban traffic congestion problem. However, research focuses mostly on rail transit systems and buses, and few economic studies systematically identify the effect of shared bicycles on traffic congestion. To fill this gap, this study, which is based on the city-level data of Beijing, Shanghai, and Wuhan in China from 2016 to 2018, uses a regression discontinuity design to test the impact of bicycle sharing on traffic congestion. Results show that first, the implementation of shared bicycle services has significant reduced effects on traffic congestion. Second, based on heterogeneity analysis of different time periods, this study determines that bicycles launched in 2016 have a strong congestion-reducing effect on traffic congestion.. Finally, heterogeneity analysis of different market shares of bicycle brands shows that compared with second-echelon shared bicycles, first-echelon bicycles, including Mobike and OFO, have more significant effects on congestion management. In summary, the implementation of shared bicycle services can reduce traffic congestion, but the government must strengthen standardized management and delivery and strictly monitor the number of shared bicycles.