A Study on Limitation of Government Initiative Model for Alternative Fuel Vehicle (AFV) Promotion in China

Byunghun Choi ()
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Byunghun Choi: Kongju National University of Korea, South Korea.

Eurasian Journal of Social Sciences, 2016, vol. 4, issue 2, 66-84

Abstract: Chinese responsibility for reducing Greenhouse Gas or carbon dioxide emission increases continuously. Chinese government suggested two targets; Alternative Fuel Vehicle output volume 500 thousand and AFV market share 5% by the end of 2011. However any of two targets did not come true. Therefore this study accessed the question, ‘why Chinese government initiative model for AFV promotion has been so poor?’ This study reviewed the transition process for AFV policies in China and made a structural analysis for three key policies since 2009. As a result the number of articles for related industries or factor endowments was relatively more than firm strategy or demand conditions. Also this study accessed the AFV strategy of Six SOEs from the perspective of social responsibility. Six SOEs have more concentrated on electric vehicle rather than hybrid vehicle with following the government leadership. However major EV or HEV models of them mostly were made by Joint Ventures being under control of foreign makers and the JVs have actually controlled over AFV business. So the limitation of Chinese government initiative model resulted from supplier-centric approach with targeting for public transportation and institution consumer, and it caused a failure to create the demand conditions of general customers.

Keywords: China’s Automobile Industry; Alternative Fuel Vehicle of China; Electric Vehicle; Hybrid Electric Vehicle (search for similar items in EconPapers)
Date: 2016
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