Low-Carbon Incentives and the Diffusion for New Energy Vehicles: Evidence from Shanghai

Li, Yumin and Li, Shiyuan and Li, Guodong and Liu, Minquan (2020): Low-Carbon Incentives and the Diffusion for New Energy Vehicles: Evidence from Shanghai.

Abstract

Governments have been heavily involved in financing investments that provide environmental benefits. The Chinese government has provided various green incentives for the new energy vehicle (NEV) industry. This study evaluates the effectiveness of these low-carbon incentive policies. We estimate a NEV demand model and simulate different policy scenarios. We find that incentive policies have increased the NEV demand by 56.26% during the sample period. Among these incentive policies, free license policy contributed most of the sales. One should, therefore, consider both financial and non-financial incentive policies in future green development program designs.

• Item Type: MPRA Paper
• Language: English
• Keywords: Low-carbon incentive policies, Subsidies, New energy vehicles, Demand estimation
• Subjects: L - Industrial Organization > L6 - Industry Studies: Manufacturing > L62 - Automobiles ; Other Transportation Equipment ; Related Parts and Equipment; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives

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