Recently, a lot of media attention has focused on how the Chinese government has been taking quick action to invest in new technologies. That one of the side benefits of the one system is speed, and this speed is needed.

Here is another example.

For those who have not purchased a car in Shanghai, one of the biggestpolicy tools the Shanghai government has possessed has been through its license plate auction system. One of a kind, Beijing has tried to push for its removal as part of its drive to increase domestic consumption), Shanghai’s plate prices can regularly push 30,000 – 40,000 RMB in a good auction, for a good plate.

Which will curb consumption.

So, imagine what the impact would be if Shanghai were to implement a green lane to free plates for green cars:

“We are considering offering free car licenses for new-energy vehicles that meet certain standards,” said Chen Hailin, who is in charge of promoting new-energy vehicles at the Shanghai Economics and Information Committee, a key policy-making agency.

That, according to the recent Shanghai Daily article Green cars may get free plates is just what might happen, and some analysts are already chiming in with what it could mean:

Industry analysts said city government hopes free car plates would partly offset the higher purchase costs and help make these energy-saving, less-polluting vehicles more attractive to buyers.

.. and while I would not go on record as saying that I would expect to see everyone move to the new cars, where I think this initiative could get interesting is that it could help provide the business case for continued investments in the related infrastructures (repair shops, chargin stations, etc)