Electric vehicle supply chain under dual-credit and subsidy policies: Technology innovation, infrastructure construction and coordination

Zirui Xu, Ying Li and Feifan Li

Energy Policy, 2024, vol. 195, issue C

Abstract: China’s pursuit of carbon neutrality has propelled the new energy vehicle industry to global prominence. However, the development of electric vehicles (EVs) is hampered by consumers’ range anxiety, which arises from concerns about battery endurance and the accessibility of charging and swapping stations. To tackle this challenge, the government has implemented some policies, such as dual-credit policy, station-building subsidy and battery R&D subsidy. Considering these initiatives, this study delves into the EV supply chain, examining how policies interact to influence the optimal strategies of EV manufacturers and battery suppliers in terms of technology innovation and infrastructure construction. By constructing a two-tier supply chain game model, we analyze three different scenarios and explore supply chain coordination through contract mechanisms. Our findings reveal the benefits of combined policies in certain situations, highlight the synergy between policies, emphasize the role of policies in shaping contract designs, and provide insights into selecting appropriate contract mechanisms. Furthermore, we offer managerial implications for responding to government incentive policies, aiming to alleviate range anxiety and foster sustainable growth in the new energy vehicle industry.

Keywords: Electric vehicles; Government subsidies; Dual-credit policy; Coordination contracts (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:195:y:2024:i:c:s0301421524003598

DOI: 10.1016/j.enpol.2024.114339

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