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Shanghai had about a half million gasoline powered motorbikes in 2000. The motorbikes have become a significant contributor to ambient air pollution in Shanghai. This study selected an electric bike (e-bike) as a potential replacement for gasoline powered motorbikes. Life cycle assessment (LCA) was carried out for the two systems in terms of energy utilization and environment implications. LCA results indicated that e-bike is not better than the motorbike in all environment categories. The e-bike consumes less energy than the motorbike during its life cycle, and emits less GWP into air, and less BOD, COD, DS and HC into water. On the other hand, it generates more solid wastes, acidification potential, and HM than the motorbike, due to electric power production. Therefore, the Shanghai government should advocate advanced batteries and clean coal fired power plant technologies while implementing an electrical vehicle plan.