The effects of public subsidies on emerging industry: An agent-based model of the electric vehicle industry
Yun Wang and
Technological Forecasting and Social Change, 2019, vol. 140, issue C, 281-295
Public subsidies are widely used as policy incentives to promote strategic industry development, especially in emerging industries that depend heavily on the use of new technologies. This study explores the differential effects of consumer subsidies and manufacturer subsidies on the development of new technology in the electric vehicle industry. An agent-based simulation model is constructed which fully considers the individual heterogeneity of consumers and manufacturers in decision-making, with the parameter settings derived from the data of the U.S. automobile market in 2010. Based on robustness tests, the findings suggest that consumer subsidy is more effective than manufacturer subsidy in promoting the popularity and technological breakthrough of electric vehicles. Subsidy intensity and duration are indicated to be important factors for policy effectiveness.
Keywords: Public subsidy; Emerging industry; Electric vehicles; Simulation; Agent-based modeling (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:140:y:2019:i:c:p:281-295
Access Statistics for this article
Technological Forecasting and Social Change is currently edited by Fred Phillips
More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().