Government subsidies, dual-credit policy, and enterprise performance: Empirical evidence from Chinese listed new energy vehicle companies

The development of the new energy vehicle industry has become a key force driving the goals of carbon peak and carbon neutralization.To better guide future strategies,this study investigates the dual impact of subsidy and dual-integral policies on the performance of new energy vehicle enterprises.This study first theorizes the influential mechanism according to the institutional-based approach and technical innovation theory,and then collects data from listed companies in the new energy vehicle industry from 2016 to 2020.The hypotheses are examined using a two-way fixed-effects model.The findings show that:(1)subsidy policies are can still improve enterprise performance,but not through green technology innovation;(2)the dual-credit policy can improve enterprise performance through green technology innovation;and(3)under current policy conditions,with subsidies declining annually,the interaction effects between the subsidy and dual-integral policies will also decrease.Thus,this study suggests that non-monetary industrial policy,represented by the dual credit policy is a more effective alternative to government subsidies.

Modeling the Diffusion of New Energy Vehicles in China Considering Subsidy Policies

The new energy vehicle(NEV)subsidy policy introduced in China in 2013 has significantly boosted the adoption and sales of NEVs,with sales increasing more than 40-fold.However,the mechanisms by which subsidy policies influence the diffusion of NEVs in China remain unclear,posing challenges for governments to design future strategies.Thus,the primary objective of this paper is to empirically examine the impact of subsidy policy on the diffusion of new energy vehicles and to forecast future development trends using the grey Bass model,a predictive model suited for new product adoption forecasting.Our findings suggest that while the sales of NEVs in China will continue to rise,the growth rate will slow.Key milestones include the first inflection points for new energy vehicles and battery electric vehicles,anticipated in 2025 and 2024 respectively,with peak sales expected in 2028 and 2027.These insights are crucial for manufacturers,enabling them to adjust their production strategies timely and enhance their resilience in the market.