IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v201y2024ics0040162524000180.html
   My bibliography  Save this article

Product development strategies of electric vehicle manufacturers: Considering government subsidy and consumers' environmental preferences

Author

Listed:
  • Liu, Jing
  • Nie, Jiajia
  • Zhang, Wenjie
  • Li, Lingyue
  • Yuan, Hongping

Abstract

Governments worldwide have promulgated greenness-based electric vehicle subsidy (GEVS) policies to encourage electric vehicle (EV) manufacturers to develop products with higher greenness (i.e., energy saving and emission reduction performance). Normally a GEVS policy would set a subsidy threshold to ensure that only EVs whose greenness meets the subsidy threshold requirement receive the subsidy. By considering consumers' environmental preferences (CEPs), this paper develops game-theoretical models to investigate the impacts of the GEVS policy on EV manufacturers' product development strategies and profits, as well as on the environment. The findings show that the product development strategies highly depend on subsidy thresholds, and three equilibrium product development strategies are obtained in equilibrium. Besides, it is intuitive to find that, in the absence of CEP, a low subsidy threshold can increase both EV manufacturers' profits and reduce the environmental impact of EVs simultaneously. However, the opposite results emerge when consumers have strong environmental preferences; that is, a low subsidy threshold would hamper both EV manufacturers' profits, and meanwhile increase EVs' environmental impacts. Surprisingly, as CEP increases, the GEVS policy is more likely to reduce EV manufacturers' profits and increase EVs' environmental impacts.

Suggested Citation

  • Liu, Jing & Nie, Jiajia & Zhang, Wenjie & Li, Lingyue & Yuan, Hongping, 2024. "Product development strategies of electric vehicle manufacturers: Considering government subsidy and consumers' environmental preferences," Technological Forecasting and Social Change, Elsevier, vol. 201(C).
    • Handle: RePEc:eee:tefoso:v:201:y:2024:i:c:s0040162524000180
    DOI: 10.1016/j.techfore.2024.123222
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162524000180
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2024.123222?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:201:y:2024:i:c:s0040162524000180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.