Zero-Emission Vehicle Mandates and Climate Justice: A Case from China’s Ride-Hailing Economy

October 21, 2024

The below blog was written by a California-China China Climate Institute Travel and Fieldwork Grant Receipient Student, David Su, a PhD candidate at UC Berkeley. It serves as one of the culminating outcomes of the student fieldwork project, "Ride-Hailing and Food-delivery platforms and climate policy in Guangdong, China."

China’s strong push toward Zero-Emission Vehicle (ZEV) adoption has placed it at the forefront of green energy innovation, with ZEV policies being central to the country’s climate strategy. However, the rapid implementation of these mandates, especially in pilot cities in Guangdong Province, has raised significant challenges for gig workers, particularly those in the ride-hailing industry. Despite ambitious goals, the gap between policy design and reality reveals climate justice is a key condition for successful policy implementation.

My research seeks to understand why China’s ZEV policies have not achieved their intended emission reduction targets. Through two months of fieldwork, I conducted 35 in-depth interviews with gig workers, junior managers in ride-hailing platforms, former ZEV company employees, and a local transportation official. The fieldwork focused on two cities in Guangdong: Dongguan, a ZEV pilot zone since 2020, and Shanwei, where non-ZEV vehicles are still permitted.

The core finding of my research is that the disregard for climate justice—manifested through the neglect of labor rights—has undermined the effectiveness of ZEV policies. 

  • Transition Costs Outsourced to Gig Workers: Gig workers are bearing the cost of the ZEV transition. In Dongguan, drivers reported that they often take on predatory loans or rent ZEVs to comply with new mandates. To earn a daily wage of 400 yuan (USD 56), drivers must work around 15 hours, with nearly 38% of their earnings going toward vehicle rental fees. By contrast, Shanwei drivers, who face fewer restrictions, maintain more flexible schedules.
     
  • Longer Hours, Higher Energy Consumption: Due to falling unit prices and a lack of labor protections, gig workers are forced to spend excessive time idling between rides, which drives up energy consumption. The shift from gas to electricity has lowered transportation costs, but this has led ride-hailing platforms to reduce driver wages, almost doubling their working hours. 
     
  • Increased Emissions Despite ZEV Uptake: Although ZEVs reduce on-road emissions, China’s electricity grid remains largely dependent on coal. As a result, scientists estimate that the ZEV rollout will only lower emissions by 40%, much lower than in the US and Europe. As discussed above, increased working hours and energy consumption negate much of the potential emissions reductions from ZEV technology.
     
  • Non-Compliance, Collusion and Circumvention: Non-ZEV drivers, though officially pushed out of the market, have found alternatives on smaller, non-mainstream apps that relax licensing requirements in exchange for lower labor costs. Major platforms also circumvent regulations by paying fines for drivers instead of funding proper licensing, taking advantage of worker’s precarity to expand their profit margins. 

The case of ZEV policy implementation in Guangdong underscores a key lesson: climate policies can backfire if they neglect the principles of climate justice. In this case, the failure to address gig workers’ labor rights has not only resulted in grievances but also in reduced policy efficacy. For China, achieving sustainable green policies requires moving beyond campaign-style, top-down approaches. This lesson is particularly relevant for policymakers in California, where similar ideas are being developed. Contrary to both neo-liberal market assumptions and a state-centered approach, this research shows the need for a policy framework that is effective, inclusive, addresses inequalities, and one that brings the society back in. Climate action and climate justice must be linked for successful policy implementations.