Evaluations of policy contagion for new energy vehicle industry in China

Cody Yu-Ling Hsiao, Rui Yang, Xin Zheng and Yi-Bin Chiu

Energy Policy, 2023, vol. 173, issue C

Abstract: This paper investigates the impact of eight new energy vehicle (NEV) policies in China from 2016 to 2021 on the stock indices of its 10 major up-, mid-, and downstream sectors. Contagion tests based on changes in either individual linear/asymmetric or joint asymmetric dependence are applied to identify how policy shocks affect relevant sectors. These tests are also used to measure the extent to which policy is important in driving the policy shocks by measuring the sensitivity index of policy announcements and using network analysis. The empirical results show that China's NEV policies, including financial subsidies, tax exemption, dual credit schemes, and long-term development plan and management notice, have significant effects on its main industry chains and affiliated sectors through linear and joint asymmetric dependence channels. Of the eight policies, the long-term development plan and financial subsidies are found to be the most effective instruments in driving policy contagion more through asymmetric dependence than linear dependence channels, while tax incentives and management notices have the least effect. The up-, mid-, and downstream sectors of NEVs are more affected by NEV policy shocks than their affiliated sectors.

Keywords: China; New energy vehicle; Policy shocks; Policy contagion; Network analysis (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421522006218
Full text for ScienceDirect subscribers only

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:eee:enepol:v:173:y:2023:i:c:s0301421522006218

DOI: 10.1016/j.enpol.2022.113402

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().