How Consumers Respond to the Phase-Out of Attribute-Based Subsidies: Evidence from the Chinese Electric Vehicle Market

Yanfei Wang, Xiongfei Guo (), Wei Lin and Yue Niu
Additional contact information
Yanfei Wang: Business School, Renmin University of China
Xiongfei Guo: School of International Trade and Economics, University of International Business and Economics
Wei Lin: School of International Trade and Economics, University of International Business and Economics
Yue Niu: School of International Trade and Economics, University of International Business and Economics

Annals of Economics and Finance, 2024, vol. 25, issue 2, 551-574

Abstract: This paper examines consumer responses to the 2020 phase-out of electric vehicle (EV) subsidies in China using a Difference-in-Differences (DD) strategy with monthly sales data. We uncover heterogeneous responses across different EV models, with significant impacts observed in the group facing a two-stage subsidy reduction. Moreover, evidence of forward-looking behavior indicates consumers adjusted their purchasing decisions in anticipation of future subsidy cuts. These findings highlight the significance of nuanced policy design in fostering sustainable EV adoption.

Keywords: Industrial policy; Difference-in-Differences; Inter-temporal effects; Electric vehicle market (search for similar items in EconPapers)
JEL-codes: D12 L52 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://down.aefweb.net/AefArticles/aef250205WangGuoLinNiu.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2024:v:25:i:2:wangguolinniu

Access Statistics for this article

Annals of Economics and Finance is currently edited by Heng-fu Zou

More articles in Annals of Economics and Finance from Society for AEF Contact information at EDIRC.
Bibliographic data for series maintained by Qiang Gao ().