The Underlying Reasons behind the Development of Public Electric Buses in China: The Beijing Case

Zeyuan Song, Yingqi Liu, Hongwei Gao and Suxiu Li
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Zeyuan Song: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Yingqi Liu: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Hongwei Gao: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Suxiu Li: Energy Internet Research Centre, State Grid Energy Research Institute, Beijing 102209, China

Sustainability, 2020, vol. 12, issue 2, 1-16

Abstract: After great efforts towards the development of the electric vehicle (EV) industry and the use of its products in public transportation networks, more electric buses operate in China than in any other country in the world. As more investors will enter the industry, the effect of new participants on the development of the EV industry becomes an important issue. Based on the analysis of several key stakeholders (central and local governments, electric bus producers, users/bus companies, and providers of charging infrastructure in public transportation, this paper constructs a dynamic game-theory model to determine the main participants and their strategic space payoff functions, and ultimately estimates a Nash equilibrium. The dynamic game-model analysis clearly shows that the government’s decision to provide subsidies or not is currently affecting the entire industry and is an important prerequisite for a dynamic game. The user decides the pace of the development of this industry and the user’s management efficiency is a key factor affecting users’ needs. In addition, the availability of EVs and charging station facilities are equally important to the development of the industry.

Keywords: electric vehicles industry; public transport sector; Beijing public electric buses; Dynamic Game Model; government policy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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