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The Transition to Electric Bikes in China. History and Key Factors for Rapid Growth. BAQ 2006, Dec 14 Jonathan Weinert, Inst. of Transp. Studies UC-Davis Ma Zedan, Tsinghua University Christopher Cherry, UC-Berkeley. Outline. E-bike Background History Key Factors Technical Economic
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The Transition to Electric Bikes in China History and Key Factors for Rapid Growth BAQ 2006, Dec 14 Jonathan Weinert, Inst. of Transp. Studies UC-Davis Ma Zedan, Tsinghua University Christopher Cherry, UC-Berkeley
Outline • E-bike Background • History • Key Factors • Technical • Economic • Political • Other • Conclusions
Motivation: • Successful & FAST adoption of a new transportation technology due to air quality concerns 2. Apply lessons to: • Other technologies • Other countries
Methodology • Existing Literature • Interviews: • 23 e-bike companies, 4 factory visits, 5 dealers, 12 users, 1 gov’t rep. • Surveys • 1,000 e-bike users in Shanghai, Kunming, and Shijiazhuang (Weinert, Ma, Yang, Cherry 2006, Cherry and Cervero, 2006)
E Bike Background Insert pix
E-bike Background • Definition: 2-wheeled vehicle (2WV) propelled by electricity and (sometimes) human power. Bicycle-style: Scooter Style:
E-bike Growth in China Jamerson, F. and Benjamin, E., 2004 Electric Bicycle World Report, 7th Edition with 2005 update, 2005
E-bike Pros and Cons 1. Cherry, Weinert, Ma (2006)
History • Phase 1: (1980s) • Technology sub-par • Phase 2: (early 90s) • Technology better, but not as good as incumbent • Phase 3: (late 90s-present • Technology “competitive” with incumbent • Incumbent crippled by regulation (The Harding Effect) • Other factors
E-bike Industry 1998: 10 companies 2005: 498 registered (1,000-5,000 unofficial) Why?: mature, simple technology, weak IP enforcement Size: 10- 200,000 bikes/year Profit margin: 6%
Key Factor 1: Technology Batteries Type: • Valve-regulated lead-acid • Replaced liquid electrolyte batteries Motor Type: • Brushless motors • Longer life, lower maintenance, more power
How has e-bike technology improved? Weinert, Ma, Cherry (2006)
Key Factor 2: Economics • Economics Compact car
Economic/Market Factors • 2002-06: Gasoline prices rose by 45%(Shanghai) China National Statistics Report (2005)
Key Factor 3: Policy Factors • Gasoline scooters bans: • 1994 Tianijn • 1996 Shanghai • 1998 Guangzhou, Shijiazhuang, Suzhou • National E-bike standards (‘99) • The “pedal” loophole: create uniform specs for BSEB and SSEB • Other loopholes (speed, weight, power) • Nat’l Road Transportation Safety Law (‘04) • Gave e-bikers right to use bike lane • Gave e-bike industry more confidence
E-bikes: a Tale of Two Cities • Beijing: • 2002, issued e-bike ban effective 06 • 2006, amidst strong oppostion, reversed decisions • Strictly enforces standards, SSEBs < 5% • Shanghai • Loosely enforced standards, SSEBs >70% • Banned gasoline scooters 1998
4. Other Factors • Liberalization of the housing market (started in mid-1990s) • SARS: early 2003 • Abnormally high summer heat wave (2003) • Why did sales spike
Conclusions • Technology • Battery life, energy density, motor efficiency • Macro-economics • Incomes rose, share spent commuting rose • Industry: • Low barriers to entry, more entrants, falling costs • National and Local policies • Product standards --> loopholes (SSEB) • Road space
So What Was It?… • The technology • The market • Or the policy • Or the timely confluence of all three???
Acknowledgements Research Supported by: • ITS-Davis (Dr. Joan Ogden & Dan Sperling) • Hong Kong Fok Ying Tung (Huo Ying Dong) Education Foundation, Project No. 94027 • ITS-Berkeley Center for Future Urban Transport-A Volvo Center of Excellence • Presentation available at www.jonathanweinert.com/presentations