The Economics of China's Mega Traffic Jam

The recent 11-day traffic jam in China was no fluke. As The Economist explains, the crushing congestion is little more than a real-world example of imbalances in supply and demand.

1 minute read

August 30, 2010, 12:00 PM PDT

By Nate Berg


Car ownership is on the rise in China. So is the construction of new highways. But one is rising faster than the other.

"Roadworks and booming demand for coal and other goods sent thousands of lorries heading for China's capital. Beijing is set to spend 80 billion yuan ($11.8 billion) on transport infrastructure in 2010-but it may not be enough. In recent years rising vehicle ownership has outpaced the growth of China's express highway system by a distance."

Thanks to GOOD

Thursday, August 26, 2010 in The Economist

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