IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v293y2024ics0360544224005358.html
   My bibliography  Save this article

Subsidy policy or dual-credit policy? Evolutionary game analysis of green methanol vehicles promotion

Author

Listed:
  • Jia, Tingwen
  • Li, Chengjiang
  • Wang, Honglei
  • Hu, Yu-jie
  • Wang, Shiyuan
  • Xu, Guoteng
  • Hoang, Anh Tuan

Abstract

To ensure energy supply, China has developed methanol vehicles since the 1980s. Although methanol vehicles are affordable and technologically mature, their life-cycle emissions are high because China uses coal to produce methanol. China has recently proposed green methanol vehicle (GMV) fueled by methane from CO2 or biomass to reduce emissions. As an essential part of promoting alternative fuel vehicles (AFVs), a policy support scheme is necessary to increase the market share of GMV. To provide a theoretical basis for a policy support scheme before further GMV promotion, this study establishes an evolutionary game model to simulate and compare the effects of different policies on GMV deployment. The results show that by comparing the subsidy policy and the dual-credit policy, the latter is more stable and effective for GMV promotion and application; under the double-points policy, it is more favorable for GMV promotion if the government includes GMV in new energy vehicles.

Suggested Citation

  • Jia, Tingwen & Li, Chengjiang & Wang, Honglei & Hu, Yu-jie & Wang, Shiyuan & Xu, Guoteng & Hoang, Anh Tuan, 2024. "Subsidy policy or dual-credit policy? Evolutionary game analysis of green methanol vehicles promotion," Energy, Elsevier, vol. 293(C).
    • Handle: RePEc:eee:energy:v:293:y:2024:i:c:s0360544224005358
    DOI: 10.1016/j.energy.2024.130763
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224005358
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.130763?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Li, Chengjiang & Negnevitsky, Michael & Wang, Xiaolin, 2020. "Prospective assessment of methanol vehicles in China using FANP-SWOT analysis," Transport Policy, Elsevier, vol. 96(C), pages 60-75.
    2. Feng, Huchen & Hu, Yu-Jie & Li, Chengjiang & Wang, Honglei, 2023. "Rolling horizon optimisation strategy and initial carbon allowance allocation model to reduce carbon emissions in the power industry: Case of China," Energy, Elsevier, vol. 277(C).
    3. Zhang, Qi & Gu, Baihe & Zhang, Haiying & Ji, Qiang, 2023. "Emission reduction mode of China's provincial transportation sector: Based on “Energy+” carbon efficiency evaluation," Energy Policy, Elsevier, vol. 177(C).
    4. Liu, Changyu & Song, Yadong & Wang, Wei & Shi, Xunpeng, 2023. "The governance of manufacturers’ greenwashing behaviors: A tripartite evolutionary game analysis of electric vehicles," Applied Energy, Elsevier, vol. 333(C).
    5. Meng, Weidong & Ma, Miaomiao & Li, Yuyu & Huang, Bo, 2022. "New energy vehicle R&D strategy with supplier capital constraints under China's dual credit policy," Energy Policy, Elsevier, vol. 168(C).
    6. Rawat, Atul & Garg, Chandra Prakash & Sinha, Priyank, 2024. "Analysis of the key hydrogen fuel vehicles adoption barriers to reduce carbon emissions under net zero target in emerging market," Energy Policy, Elsevier, vol. 184(C).
    7. Zhao, Dan & Ji, Shou-feng & Wang, He-ping & Jiang, Li-wen, 2021. "How do government subsidies promote new energy vehicle diffusion in the complex network context? A three-stage evolutionary game model," Energy, Elsevier, vol. 230(C).
    8. Ma, Miaomiao & Meng, Weidong & Li, Yuyu & Huang, Bo, 2023. "Impact of dual credit policy on new energy vehicles technology innovation with information asymmetry," Applied Energy, Elsevier, vol. 332(C).
    9. Gu, Xiaoyu & Ieromonachou, Petros & Zhou, Li, 2019. "Subsidising an electric vehicle supply chain with imperfect information," International Journal of Production Economics, Elsevier, vol. 211(C), pages 82-97.
    10. Wang, Yitong & Fan, Ruguo & Du, Kang & Bao, Xuguang, 2023. "Exploring incentives to promote electric vehicles diffusion under subsidy abolition: An evolutionary analysis on multiplex consumer social networks," Energy, Elsevier, vol. 276(C).
    11. Ma, Miaomiao & Meng, Weidong & Huang, Bo & Li, Yuyu, 2023. "The influence of dual credit policy on new energy vehicle technology innovation under demand forecast information asymmetry," Energy, Elsevier, vol. 271(C).
    12. Li, Jizi & Ku, Yaoyao & Yu, Yue & Liu, Chunling & Zhou, Yuping, 2020. "Optimizing production of new energy vehicles with across-chain cooperation under China’s dual credit policy," Energy, Elsevier, vol. 194(C).
    13. Li, Chengjiang & Jia, Tingwen & Wang, Honglei & Wang, Xiaolin & Negnevitsky, Michael & Hu, Yu-jie & Zhao, Gang & Wang, Liang, 2023. "Assessing the prospect of deploying green methanol vehicles in China from energy, environmental and economic perspectives," Energy, Elsevier, vol. 263(PE).
    14. Li, Yaoming & Zhang, Qi & Liu, Boyu & McLellan, Benjamin & Gao, Yuan & Tang, Yanyan, 2018. "Substitution effect of New-Energy Vehicle Credit Program and Corporate Average Fuel Consumption Regulation for Green-car Subsidy," Energy, Elsevier, vol. 152(C), pages 223-236.
    15. Wu, Fulan & Li, Pei & Dong, Xuebing & Lu, Yuanzhu, 2022. "Exploring the effectiveness of China's dual credit policy in a differentiated automobile market when some consumers are environmentally aware," Energy Economics, Elsevier, vol. 111(C).
    16. Pala, Zeydin, 2023. "Comparative study on monthly natural gas vehicle fuel consumption and industrial consumption using multi-hybrid forecast models," Energy, Elsevier, vol. 263(PC).
    17. Li, Chengjiang & Negnevitsky, Michael & Wang, Xiaolin & Yue, Wen Long & Zou, Xin, 2019. "Multi-criteria analysis of policies for implementing clean energy vehicles in China," Energy Policy, Elsevier, vol. 129(C), pages 826-840.
    18. Xia, Xiaoning & Li, Pengwei & Cheng, Yang, 2023. "Tripartite evolutionary game analysis of power battery carbon footprint disclosure under the EU battery regulation," Energy, Elsevier, vol. 284(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu, Hui & Li, Ying & Wang, Wei, 2023. "Optimal innovation strategies of automakers with market competition under the dual-credit policy," Energy, Elsevier, vol. 283(C).
    2. Li, Xin & Wu, Ming & Shi, Chunming & Chen, Yan, 2023. "Impacts of green credit policies and information asymmetry: From market perspective," Resources Policy, Elsevier, vol. 81(C).
    3. Lian Ding & Xiaodong Zhu, 2023. "The Impact of the Dual-Credit Policy on Production and Cooperative R&D in the Automotive Supply Chain," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    4. Zhao, Dan & Wang, Jian & Li, Ye-kai & Tang, Jin-huan & Zhang, Shui-wang, 2024. "How to promote the transition of fuel vehicle enterprises under dual credit policy? An improved tripartite evolutionary game analysis with time delay," Energy, Elsevier, vol. 293(C).
    5. Ma, Miaomiao & Meng, Weidong & Huang, Bo & Li, Yuyu, 2023. "The influence of dual credit policy on new energy vehicle technology innovation under demand forecast information asymmetry," Energy, Elsevier, vol. 271(C).
    6. Ziyue Wang & Juan Zhang & Huiju Zhao, 2020. "The Selection of Green Technology Innovations under Dual-Credit Policy," Sustainability, MDPI, vol. 12(16), pages 1-22, August.
    7. Fan, Zhi-Ping & Cao, Yue & Huang, Chun-Yong & Li, Yongli, 2020. "Pricing strategies of domestic and imported electric vehicle manufacturers and the design of government subsidy and tariff policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    8. Chonglian Li, 2023. "Optimizing the Growing Dual Credit Requirements for Automobile Manufacturers in China’s Dual Credit Policy," Sustainability, MDPI, vol. 15(22), pages 1-24, November.
    9. Zhao, Dan & Ji, Shou-feng & Wang, He-ping & Jiang, Li-wen, 2021. "How do government subsidies promote new energy vehicle diffusion in the complex network context? A three-stage evolutionary game model," Energy, Elsevier, vol. 230(C).
    10. Zixuan Wang & Xiuzhang Li, 2021. "Demand Subsidy versus Production Regulation: Development of New Energy Vehicles in a Competitive Environment," Mathematics, MDPI, vol. 9(11), pages 1-22, June.
    11. Fan, Ruguo & Bao, Xuguang & Du, Kang & Wang, Yuanyuan & Wang, Yitong, 2022. "The effect of government policies and consumer green preferences on the R&D diffusion of new energy vehicles: A perspective of complex network games," Energy, Elsevier, vol. 254(PA).
    12. Cheng, Yongwei & Fan, Tijun, 2021. "Production coopetition strategies for an FV automaker and a competitive NEV automaker under the dual-credit policy," Omega, Elsevier, vol. 103(C).
    13. Yuchao Li & Lijie Zhang & Jiamin Liu & Xinpei Qiao, 2023. "Can the Dual-Credit Policy Help China’s New Energy Vehicle Industry Achieve Corner Overtaking?," Sustainability, MDPI, vol. 15(3), pages 1-22, January.
    14. Ma, Haicheng & Lou, Gaoxiang & Fan, Tijun & Chan, Hing Kai & Chung, Sai Ho, 2021. "Conventional automotive supply chains under China's dual-credit policy: fuel economy, production and coordination," Energy Policy, Elsevier, vol. 151(C).
    15. Li, Jingjing & Wang, Zhaoxin & Li, Hui & Jiao, Jianling, 2024. "Which policy can effectively promote the formal recycling of power batteries in China?," Energy, Elsevier, vol. 299(C).
    16. Jun-bin Wang & Lufei Huang, 2021. "A Game-Theoretic Analytical Approach for Fostering Energy-Saving Innovation in the Electric Vehicle Supply Chain," SAGE Open, , vol. 11(2), pages 21582440211, June.
    17. Nie, Qingyun & Zhang, Lihui & Tong, Zihao & Hubacek, Klaus, 2022. "Strategies for applying carbon trading to the new energy vehicle market in China: An improved evolutionary game analysis for the bus industry," Energy, Elsevier, vol. 259(C).
    18. Liao, Dongsheng & Tan, Binbin, 2023. "An evolutionary game analysis of new energy vehicles promotion considering carbon tax in post-subsidy era," Energy, Elsevier, vol. 264(C).
    19. Ma, Miaomiao & Meng, Weidong & Li, Yuyu & Huang, Bo, 2023. "Impact of dual credit policy on new energy vehicles technology innovation with information asymmetry," Applied Energy, Elsevier, vol. 332(C).
    20. Li, Chengjiang & Hao, Qianwen & Wang, Honglei & Hu, Yu-jie & Xu, Guoteng & Qin, Quande & Wang, Xiaolin & Negnevitsky, Michael, 2024. "Assessing green methanol vehicles' deployment with life cycle assessment-system dynamics model," Applied Energy, Elsevier, vol. 363(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:293:y:2024:i:c:s0360544224005358. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.