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The Impact of Government Subsidies or Penalties for New-energy Vehicles A Static and Evolutionary Game Model Analysis

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  • Shanyong Wang
  • Jin Fan
  • Dingtao Zhao
  • Yanrui Wu

Abstract

This paper provides an approach in the context of transport-generated carbon emissions reduction, discusses the interaction between the government and the vehicle manufacturer by using game theory, and focuses on how manufacturers' motivation can be tapped in order to encourage the adoption of advanced technologies to manufacture new-energy vehicles. The results of the analyses suggest that the strategic choices of the vehicle manufacturer would be influenced by government subsidies, penalties, and, to some extent, consumer environmental awareness. The results will be of particular interest to governments interested in guiding vehicle manufacturers towards making new-energy vehicles. © 2015 LSE and the University of Bath

Suggested Citation

  • Shanyong Wang & Jin Fan & Dingtao Zhao & Yanrui Wu, 2015. "The Impact of Government Subsidies or Penalties for New-energy Vehicles A Static and Evolutionary Game Model Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 49(1), pages 98-114, January.
    • Handle: RePEc:tpe:jtecpo:v:49:y:2015:i:1:p:98-114
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    Cited by:

    1. Yang, Shu & Cheng, Peng & Li, Jun & Wang, Shanyong, 2019. "Which group should policies target? Effects of incentive policies and product cognitions for electric vehicle adoption among Chinese consumers," Energy Policy, Elsevier, vol. 135(C).
    2. Hongxia Sun & Yao Wan & Huirong Lv, 2020. "System Dynamics Model for the Evolutionary Behaviour of Government Enterprises and Consumers in China’s New Energy Vehicle Market," Sustainability, MDPI, vol. 12(4), pages 1-21, February.
    3. Zhao, Tian & Liu, Zhixin, 2019. "A novel analysis of carbon capture and storage (CCS) technology adoption: An evolutionary game model between stakeholders," Energy, Elsevier, vol. 189(C).
    4. Rongjiang Cai & Tao Zhang & Xi Wang & Qiaoran Jia & Shufang Zhao & Nana Liu & Xiaoguang Wang, 2024. "Evolutionary Game and Simulation Analysis of New-Energy Vehicle Promotion in China Based on Reward and Punishment Mechanisms," Mathematics, MDPI, vol. 12(18), pages 1-24, September.
    5. Shao, Jing & Jiang, Changmin & Cui, Yinglong & Tang, Yao, 2023. "A game-theoretic model to compare charging infrastructure subsidy and electric vehicle subsidy policies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).

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