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Industrial policy and the creation of the electric vehicles market in China: demand structure, sectoral complementarities and policy coordination

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  • Alexandre De Podestá
  • Robert Pauls
  • Tobias ten Brink

Abstract

Since the late 2000s, the Chinese government has been adopting active industrial policies to create a market for electric vehicles. While celebrated as a success nationally and internationally, a closer look reveals a mixed picture with market growth concentrated in only a few cities. On the basis of heterodox industrial policy literature, Chinese-language policy documents and interviews, we develop an analytical framework to empirically study electric vehicles deployment at the city-level, and to assess the achievements and obstacles of implementing industrial policies in this sector. We particularly stress the interrelatedness of policies governing the demand structure of the electric vehicles market and its main complementary sector, the charging infrastructure, which need to be aligned in the progressively more complex segments making up the electric vehicles market. Taking this industry as a case study, we contribute to the wider debate on the determinants of industrial policy effectiveness.

Suggested Citation

  • Alexandre De Podestá & Robert Pauls & Tobias ten Brink, 2023. "Industrial policy and the creation of the electric vehicles market in China: demand structure, sectoral complementarities and policy coordination," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 47(1), pages 45-66.
    • Handle: RePEc:oup:cambje:v:47:y:2023:i:1:p:45-66.
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    File URL: http://hdl.handle.net/10.1093/cje/beac056
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    References listed on IDEAS

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    1. Howard Pack & Kamal Saggi, 2006. "Is There a Case for Industrial Policy? A Critical Survey," The World Bank Research Observer, World Bank, vol. 21(2), pages 267-297.
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    1. Bofinger, Peter & Geißendörfer, Lisa & Haas, Thomas & Mayer, Fabian, 2023. "Credit as an instrument for growth: A monetary explanation of the Chinese growth story," W.E.P. - Würzburg Economic Papers 107, University of Würzburg, Department of Economics.
    2. Chen Chris Gong & Falko Ueckerdt & Christoph Bertram & Yuxin Yin & David Bantje & Robert Pietzcker & Johanna Hoppe & Robin Hasse & Michaja Pehl & Sim'on Moreno-Leiva & Jakob Duerrwaechter & Jarusch Mu, 2023. "Multi-level emission impacts of electrification and coal pathways in China's netzero transition," Papers 2312.04332, arXiv.org, revised Aug 2024.
    3. Zavřelová Veronika & Pelikánová Radka MacGregor, 2024. "The Ephemeral Term “Sustainable Development” in Current EU Policies," Folia Oeconomica Stetinensia, Sciendo, vol. 24(2), pages 389-418.
    4. Caleb H. Tse & Klaus E. Meyer & Yigang Pan & Tailan Chi, 2024. "Evolution of MNE strategies amid China’s changing institutions: a thematic review," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(6), pages 657-675, August.

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