Optimizing production of new energy vehicles with across-chain cooperation under China’s dual credit policy

Li, Jizi; Ku, Yaoyao; Yu, Yue; Liu, Chunling; Zhou, Yuping

doi:10.1016/j.energy.2019.116832

Cited by 80 publications

(41 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Subsidy policy widens the deployment of new energy vehicles, but it also causes a greater financial burden [32]. Hence, the government promulgated the dual credit policy (DCP), which is the substitution of subsidy incentive policies, to guide the vehicle industry development.…”

Section: Production Decisions Of Auto Supply Chain Under Dual Credit Policymentioning

confidence: 99%

See 1 more Smart Citation

Effects of Dual Credit Policy and Consumer Preferences on Production Decisions in Automobile Supply Chain

Peng

Liu

2021

Sustainability

View full text Add to dashboard Cite

New energy vehicles have a significant advantage in energy saving and environmental pollution reduction in the transportation industry; however, they are still at a disadvantage in the market competition. The Chinese government has introduced lots of policy measures to promote the mass adoption of new energy vehicles (NEVs), specifically the dual credit policy. Moreover, consumer’s preferences are vital factors in their purchase decision making. This study focuses on the production decisions of automobile manufacturers under the decentralized and centralized supply chain, considering the factors of both consumer preferences and dual credit policy. First, under the centralized decision mode, higher demand drives the manufacturer to expand production; however, retailers’ profits are harmed. With the increase in consumers’ environmental preference and cognition of endurance ability, market pricing and demand increase under the decentralized decision mode. The cross effects of preferences bring more profits for manufacturers and retailers. Second, the difference in prices and profits widens, under the two decision modes, as increases in consumer preferences’ value. When consumers have higher environmental preferences, manufacturers and retailers should increase the new energy vehicle pricing. Otherwise, they should decrease pricing to increase the market penetration ratio. In addition, the impacts of one preference on the profit difference are related to the other preference.

show abstract

Section: Production Decisions Of Auto Supply Chain Under Dual Credit Policymentioning

confidence: 99%

“…Among them, let k 0 − k f be the environmental friendliness of fuel vehicles, and there ise f = k 0 − k f ; Let ( k 0 − k n ) be the environmental friendliness of new energy vehicles, and there ise n = ( k 0 − k n ). We assume new energy vehicles are more environmentally friendly than fuel vehicles, that is ( [32,58].…”

Section: Assumptionsmentioning

confidence: 99%

Effects of Dual Credit Policy and Consumer Preferences on Production Decisions in Automobile Supply Chain

Peng

Liu

2021

Sustainability

View full text Add to dashboard Cite

show abstract

“…Furthermore, there is literature comparing the dual-credit policy with other policies applied in the automotive industry [7][8][9][10]. According to the study of Li et al, compared with green-car subsidy, the dual-credit policy can significantly increase the number of new vehicles to two times as much as that of subsidy level [7].…”

Section: Dual-credit Policymentioning

confidence: 99%

“…Zheng et al built a dual-credit model considering R&D subsidy to explore how the price of positive credit and market size affect the R&D investment [9]. Li et al examined the differences between subsidy scheme for constructing EV charging station and dual-credit scheme under a stylized production model by solving the production decision of FV and EV [10].…”

Section: Dual-credit Policymentioning

confidence: 99%

The Selection of Green Technology Innovations under Dual-Credit Policy

2020

View full text Add to dashboard Cite

In the pressure of excessive resource consumption and serious environmental pollution, government in China proposed a dual-credit policy to promote the production of green vehicles, such as energy-saving fuel vehicle (FV) and electric vehicle (EV). This study explores the firm’s selection of green technology innovations (GTIs) under dual-credit policy, including the energy-saving technology for FV and the technology for producing EV. We found that the firm’s technology capacity of improving the energy-saving level of FV plays an important role in affecting the firm’s selections of GTIs. Specifically, when the technology capacity is moderate, the firm chooses both types of GTIs to produce both EV and energy-saving FV, otherwise he will choose one type only. Moreover, no matter which GTI is selected by the firm, its pricing and environmental efforts decisions keep the same. With the dual-credit policy, we found that it could encourage the production of the EV under certain conditions. Besides this, increasing the green credit of EV can align the economic and environmental interests while increasing standard energy consumption has conflicts in both interests. In particular, when the firm offers FV only or both EV and FV, increasing the price of credit has conflicting interests in economy and environment. However, when the firm offers EV only, increasing the price of credit could improve the firm’s profit without hurting the environment.

show abstract

“…The dual credit policy exercises a parallel management of carmakers' fuel consumption credits (CAFC) and NEV credits, requiring that CV manufacturers must satisfy two conditions before being allowed to produce [5,51]. The first condition is the output of one CV requires the corresponding NEV credits; the second one is that the CV's actual fuel consumption must be below the government's threshold value [52,53]. To obtain must-be NEV credits, CV's makers have two options, i.e., self-producing NEVs and purchasing credits from NEV firms [5].…”

Section: Antecedents Of Tammentioning

confidence: 99%

Consumers’ Purchase Intention of New Energy Vehicles: Do Product-Life-Cycle Policy Portfolios Matter?

Zhou

et al. 2020

Sustainability

Self Cite

View full text Add to dashboard Cite

New energy vehicles have been recognized as a sustainable alternative to lower gasoline consumption and emissions in the transportation sector. To alleviate environmental pressure, a spectrum of government policies has been introduced to inspire the production and penetration of new energy vehicles (NEVs). Meanwhile, some of the incentive policies are facing renewals and modifications to meet consumers’ demand of purchase and the present growth of the NEV industry. This means that the understanding of what the current and upcoming policies are, how to formulate policy portfolios, and consumers’ purchasing NEV behavior in a response to these policies and its adjustment are of practical and academic importance for the NEV sector. Different from prior research which analyzed the role of government policy as a whole, we here separately examined the impact of policy portfolios (i.e., production policy, purchase/usage policy and recycle policy) on NEV adoption from the product life cycle perspective. The hypotheses were empirically tested by analyzing data collected from 299 respondents in China. The results showed that production policy has a significantly positive impact on financial benefits, esteem needs and infrastructure, whereas it insignificantly influences NEV performance; similarly, purchase/usage policy positively affects esteem needs and infrastructure, yet its effect on financial benefits is found to be insignificant; meanwhile, recycle policy has a significantly positive effect on financial benefits, and esteem needs as well as NEV performance. Furthermore, financial benefits, esteem needs, NEV performance and infrastructure are found to significantly and positively impact on consumers’ purchase intention. Parallel to this, we observed perceived usefulness and perceived ease of use play partially mediating relations between policy portfolios and consumers’ adoption intent. Hints for decision-makers and avenues for future study are discussed in this research.

show abstract

Optimizing production of new energy vehicles with across-chain cooperation under China’s dual credit policy

Cited by 80 publications

References 32 publications

Effects of Dual Credit Policy and Consumer Preferences on Production Decisions in Automobile Supply Chain

Effects of Dual Credit Policy and Consumer Preferences on Production Decisions in Automobile Supply Chain

The Selection of Green Technology Innovations under Dual-Credit Policy

Consumers’ Purchase Intention of New Energy Vehicles: Do Product-Life-Cycle Policy Portfolios Matter?

Contact Info

Product

Resources

About