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Price competition and joint energy‐consumption reduction technology investment of new energy and fuel vehicles under the double‐points policy

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  • Yangyang Wang
  • Yongxi Yi
  • Chunyan Fu
  • Yuqiong Li

Abstract

This paper explores for the first time the manufacturers' joint energy reduction strategies for both new energy and fuel vehicles. Assume there is a Cournot car market with differentiated products consisting of one manufacturer producing fuel cars and one manufacturer producing fuel and new energy cars, and a double‐points policy governs them. It shows that the double‐points policy does not necessarily result in a contraction in the fuel vehicle market while leading to a boom in the new energy vehicle market; market competition and consumers' preference for low energy consumption can help incentive manufacturers to reduce vehicle energy consumption.

Suggested Citation

  • Yangyang Wang & Yongxi Yi & Chunyan Fu & Yuqiong Li, 2023. "Price competition and joint energy‐consumption reduction technology investment of new energy and fuel vehicles under the double‐points policy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2278-2291, June.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:4:p:2278-2291
    DOI: 10.1002/mde.3817
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