IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v17y2020i3p726-d312177.html
   My bibliography  Save this article

What Affects the Diffusion of New Energy Vehicles Financial Subsidy Policy? Evidence from Chinese Cities

Author

Listed:
  • Weixing Liu

    (School of Public Administration and Policy, Renmin University of China, Beijing 100872, China)

  • Hongtao Yi

    (School of Public Administration and Policy, Renmin University of China, Beijing 100872, China
    John Glenn College of Public Affairs, The Ohio State University, Columbus, OH 43210, USA)

Abstract

Designing and implementing effective new energy vehicle (NEV) policy are policy priorities for policymakers and energy policy scholars. However, the formulation, adoption, and diffusion of the NEV policies have not been fully examined in the extant literature. This article explores the mechanisms driving the diffusion of local financial subsidy policy for NEVs in China. In this context, we aim at analyzing the factors affecting the diffusion of local financial subsidies for NEVs in cities, to explain why some cities have taken the lead in adopting local financial subsidy policies for NEVs, while other cities have lagged behind. Based on a data set of 286 cities in China from 2009 to 2016, and with event history analysis (EHA) to analyze the strategic behaviors of local governments, we found that the number of the city’s neighbors that have adopted the NEV policy, the financial incentive policy of the provincial government, the administrative ranking of the city, the city’s financial situation and innovation capacity have a direct impact on whether the city adopts a local financial subsidy policy for NEVs. This study has practical implications for policymakers in designing and promoting the spread of NEV policies.

Suggested Citation

  • Weixing Liu & Hongtao Yi, 2020. "What Affects the Diffusion of New Energy Vehicles Financial Subsidy Policy? Evidence from Chinese Cities," IJERPH, MDPI, vol. 17(3), pages 1-15, January.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:3:p:726-:d:312177
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/17/3/726/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/17/3/726/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kim, Jae Hun & Lee, Gunwoo & Park, Ji Young & Hong, Jungyeol & Park, Juneyoung, 2019. "Consumer intentions to purchase battery electric vehicles in Korea," Energy Policy, Elsevier, vol. 132(C), pages 736-743.
    2. Henneman, Lucas R.F. & Rafaj, Peter & Annegarn, Harold J. & Klausbruckner, Carmen, 2016. "Assessing emissions levels and costs associated with climate and air pollution policies in South Africa," Energy Policy, Elsevier, vol. 89(C), pages 160-170.
    3. Thomas P. Lyon & Haitao Yin, 2010. "Why Do States Adopt Renewable Portfolio Standards?: An Empirical Investigation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 133-158.
    4. Gray, Virginia, 1973. "Innovation in the States: A Diffusion Study," American Political Science Review, Cambridge University Press, vol. 67(4), pages 1174-1185, December.
    5. Skerlos, Steven J. & Winebrake, James J., 2010. "Targeting plug-in hybrid electric vehicle policies to increase social benefits," Energy Policy, Elsevier, vol. 38(2), pages 705-708, February.
    6. Yabe, Kuniaki & Shinoda, Yukio & Seki, Tomomichi & Tanaka, Hideo & Akisawa, Atsushi, 2012. "Market penetration speed and effects on CO2 reduction of electric vehicles and plug-in hybrid electric vehicles in Japan," Energy Policy, Elsevier, vol. 45(C), pages 529-540.
    7. Motoaki, Yutaka & Yi, Wenqi & Salisbury, Shawn, 2018. "Empirical analysis of electric vehicle fast charging under cold temperatures," Energy Policy, Elsevier, vol. 122(C), pages 162-168.
    8. Pasaoglu, Guzay & Honselaar, Michel & Thiel, Christian, 2012. "Potential vehicle fleet CO2 reductions and cost implications for various vehicle technology deployment scenarios in Europe," Energy Policy, Elsevier, vol. 40(C), pages 404-421.
    9. Walker, Jack L., 1969. "The Diffusion of Innovations among the American States," American Political Science Review, Cambridge University Press, vol. 63(3), pages 880-899, November.
    10. Li, Wenbo & Long, Ruyin & Chen, Hong, 2016. "Consumers’ evaluation of national new energy vehicle policy in China: An analysis based on a four paradigm model," Energy Policy, Elsevier, vol. 99(C), pages 33-41.
    11. Liu, Yingqi & Kokko, Ari, 2013. "Who does what in China’s new energy vehicle industry?," Energy Policy, Elsevier, vol. 57(C), pages 21-29.
    12. Charles R. Shipan & Craig Volden, 2008. "The Mechanisms of Policy Diffusion," American Journal of Political Science, John Wiley & Sons, vol. 52(4), pages 840-857, October.
    13. Zhang, Xiaohong & Wu, Liqian & Zhang, Rong & Deng, Shihuai & Zhang, Yanzong & Wu, Jun & Li, Yuanwei & Lin, Lili & Li, Li & Wang, Yinjun & Wang, Lilin, 2013. "Evaluating the relationships among economic growth, energy consumption, air emissions and air environmental protection investment in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 259-270.
    14. Priessner, Alfons & Sposato, Robert & Hampl, Nina, 2018. "Predictors of electric vehicle adoption: An analysis of potential electric vehicle drivers in Austria," Energy Policy, Elsevier, vol. 122(C), pages 701-714.
    15. Berry, Frances Stokes & Berry, William D., 1990. "State Lottery Adoptions as Policy Innovations: An Event History Analysis," American Political Science Review, Cambridge University Press, vol. 84(2), pages 395-415, June.
    16. Massiani, Jérôme, 2015. "Cost-Benefit Analysis of policies for the development of electric vehicles in Germany: Methods and results," Transport Policy, Elsevier, vol. 38(C), pages 19-26.
    17. Tang, Bao-jun & Wu, Xiao-feng & Zhang, Xian, 2013. "Modeling the CO2 emissions and energy saved from new energy vehicles based on the logistic-curve," Energy Policy, Elsevier, vol. 57(C), pages 30-35.
    18. Hongtao Yi & Can Cui, 2019. "Coping with functional collective action dilemma: functional fragmentation and administrative integration," Public Management Review, Taylor & Francis Journals, vol. 21(7), pages 1052-1075, July.
    19. Guoqiang Zhang & Yanmei Xu & Juan Zhang, 2016. "Consumer-Oriented Policy towards Diffusion of Electric Vehicles: City-Level Evidence from China," Sustainability, MDPI, vol. 8(12), pages 1-16, December.
    20. Karplus, Valerie J. & Paltsev, Sergey & Reilly, John M., 2010. "Prospects for plug-in hybrid electric vehicles in the United States and Japan: A general equilibrium analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(8), pages 620-641, October.
    21. Qiu, Y.Q. & Zhou, P. & Sun, H.C., 2019. "Assessing the effectiveness of city-level electric vehicle policies in China," Energy Policy, Elsevier, vol. 130(C), pages 22-31.
    22. Helveston, John Paul & Liu, Yimin & Feit, Elea McDonnell & Fuchs, Erica & Klampfl, Erica & Michalek, Jeremy J., 2015. "Will subsidies drive electric vehicle adoption? Measuring consumer preferences in the U.S. and China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 73(C), pages 96-112.
    23. Tan, Ruipeng & Tang, Di & Lin, Boqiang, 2018. "Policy impact of new energy vehicles promotion on air quality in Chinese cities," Energy Policy, Elsevier, vol. 118(C), pages 33-40.
    24. Zhu, 2014. "Mandate Versus Championship: Vertical government intervention and diffusion of innovation in public services in authoritarian China," Public Management Review, Taylor & Francis Journals, vol. 16(1), pages 117-139, January.
    25. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    26. Hofmann, Jana & Guan, Dabo & Chalvatzis, Konstantinos & Huo, Hong, 2016. "Assessment of electrical vehicles as a successful driver for reducing CO2 emissions in China," Applied Energy, Elsevier, vol. 184(C), pages 995-1003.
    27. Ma, Shao-Chao & Fan, Ying & Feng, Lianyong, 2017. "An evaluation of government incentives for new energy vehicles in China focusing on vehicle purchasing restrictions," Energy Policy, Elsevier, vol. 110(C), pages 609-618.
    28. Walker, Jack L., 1969. "The Diffusion of Innovations among the American States," American Political Science Review, Cambridge University Press, vol. 63(3), pages 880-899, November.
    29. Diamond, David, 2009. "The impact of government incentives for hybrid-electric vehicles: Evidence from US states," Energy Policy, Elsevier, vol. 37(3), pages 972-983, March.
    30. Kharecha, Pushker A. & Sato, Makiko, 2019. "Implications of energy and CO2 emission changes in Japan and Germany after the Fukushima accident," Energy Policy, Elsevier, vol. 132(C), pages 647-653.
    31. Jiang, Bing & Sun, Zhenqing & Liu, Meiqin, 2010. "China's energy development strategy under the low-carbon economy," Energy, Elsevier, vol. 35(11), pages 4257-4264.
    32. Liu, Zongwei & Hao, Han & Cheng, Xiang & Zhao, Fuquan, 2018. "Critical issues of energy efficient and new energy vehicles development in China," Energy Policy, Elsevier, vol. 115(C), pages 92-97.
    33. Thiel, Christian & Perujo, Adolfo & Mercier, Arnaud, 2010. "Cost and CO2 aspects of future vehicle options in Europe under new energy policy scenarios," Energy Policy, Elsevier, vol. 38(11), pages 7142-7151, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Li, Jiachen & Jiang, Meiru & Li, Ge, 2024. "Does the new energy vehicles subsidy policy decrease the carbon emissions of the urban transport industry? Evidence from Chinese cities in Yangtze River Delta," Energy, Elsevier, vol. 298(C).
    3. Yue Wang & Yang Wen & Yingying Xu & Lei Shi & Xuan Yang, 2022. "Health Benefits Quantification for New-Energy Vehicles Promotion: A Case Study of Beijing," IJERPH, MDPI, vol. 19(21), pages 1-12, October.
    4. Evan M. Mistur & John Wagner Givens & Daniel C. Matisoff, 2023. "Contagious COVID‐19 policies: Policy diffusion during times of crisis," Review of Policy Research, Policy Studies Organization, vol. 40(1), pages 36-62, January.
    5. Liwen Shi & Zhonglin Fu & Wei Guo & Jing Zhang & Jiang Sun, 2023. "Exploring the Factors That Promote Sustainable Growth in Regional Sales of New Energy Vehicles: An Empirical Study of China," Sustainability, MDPI, vol. 15(8), pages 1-16, April.

    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. Zhang, Lei & Qin, Quande, 2018. "China’s new energy vehicle policies: Evolution, comparison and recommendation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 57-72.
    2. Xiaohan Li & Yang Lv & Md Nazirul Islam Sarker & Xun Zeng, 2022. "Assessment of Critical Diffusion Factors of Public–Private Partnership and Social Policy: Evidence from Mainland Prefecture-Level Cities in China," Land, MDPI, vol. 11(3), pages 1-15, February.
    3. Derek Glasgow & Shuang Zhao & Saatvika Rai, 2021. "Rethinking Climate Change Leadership: An Analysis of the Ambitiousness of State GHG Targets," Review of Policy Research, Policy Studies Organization, vol. 38(4), pages 398-426, July.
    4. Felix Strebel & Thomas Widmer, 2012. "Visibility and facticity in policy diffusion: going beyond the prevailing binarity," Policy Sciences, Springer;Society of Policy Sciences, vol. 45(4), pages 385-398, December.
    5. Wang, Kunlun & Zheng, Leven J. & Lin, Boqiang, 2024. "Demand-side incentives, competition, and firms’ innovative activities: Evidence from automobile industry in China," Energy Economics, Elsevier, vol. 132(C).
    6. Lin, Boqiang & Tan, Ruipeng, 2017. "Estimation of the environmental values of electric vehicles in Chinese cities," Energy Policy, Elsevier, vol. 104(C), pages 221-229.
    7. Strebel, Felix, 2011. "Inter-governmental institutions as promoters of energy policy diffusion in a federal setting," Energy Policy, Elsevier, vol. 39(1), pages 467-476, January.
    8. Peng Yu & Jian Zhang & Defang Yang & Xin Lin & Tianying Xu, 2019. "The Evolution of China’s New Energy Vehicle Industry from the Perspective of a Technology–Market–Policy Framework," Sustainability, MDPI, vol. 11(6), pages 1-14, March.
    9. Côme Billard & Anna Creti & Antoine Mandel, 2020. "How Environmental Policies Spread? A Network Approach to Diffusion in the U.S," Working Papers 2020.12, FAERE - French Association of Environmental and Resource Economists.
    10. Youlang Zhang & Hongshan Yang, 2023. "Bureaucratic politics, innovation compatibility, and the dynamic diffusion of subnational decentralization reforms in China," Review of Policy Research, Policy Studies Organization, vol. 40(4), pages 553-572, July.
    11. Fabrizio Gilardi, 2010. "Who Learns from What in Policy Diffusion Processes?," American Journal of Political Science, John Wiley & Sons, vol. 54(3), pages 650-666, July.
    12. Jolley, G. Jason, 2023. "The Political Economy of Local Government Enterprise Zone Designation," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(2), September.
    13. Sun, Hao & Su, Jun & Ma, Liang, 2021. "The diffusion of the utility tunnel policy: Evidence from Chinese cities," Utilities Policy, Elsevier, vol. 72(C).
    14. Suk Joon Hwang & Frances Berry, 2019. "Deterring Drunk Driving: Why Some States Go Further Than Others in Policy Innovation," IJERPH, MDPI, vol. 16(10), pages 1-18, May.
    15. Hassan Danaeefard & Fatemeh Mahdizadeh, 2022. "Public Policy Diffusion: A Scoping Review," Public Organization Review, Springer, vol. 22(2), pages 455-477, June.
    16. Fadly, Dalia & Fontes, Francisco, 2019. "Geographical proximity and renewable energy diffusion: An empirical approach," Energy Policy, Elsevier, vol. 129(C), pages 422-435.
    17. Nico Heiden & Felix Strebel, 2012. "What about non-diffusion? The effect of competitiveness in policy-comparative diffusion research," Policy Sciences, Springer;Society of Policy Sciences, vol. 45(4), pages 345-358, December.
    18. Conghu Wang & Xiaoming Li & Wenjuan Ma & Xiaopeng Wang, 2020. "Diffusion models over the life cycle of an innovation: A bottom‐up and top‐down synthesis approach," Public Administration & Development, Blackwell Publishing, vol. 40(2), pages 105-118, May.
    19. Yi, Hongtao & Feiock, Richard C. & Berry, Frances S., 2017. "Overcoming collective action barriers to energy sustainability: A longitudinal study of climate protection accord adoption by local governments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 339-346.
    20. Brian Y. An & Adam Butz & Min-Kyeong Cha & Joshua L. Mitchell, 2023. "Following neighbors or regional leaders? Unpacking the effect of geographic proximity in local climate policy diffusion," Policy Sciences, Springer;Society of Policy Sciences, vol. 56(4), pages 825-868, December.

    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:gam:jijerp:v:17:y:2020:i:3:p:726-:d:312177. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.