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Can the Dual-Credit Policy Help China’s New Energy Vehicle Industry Achieve Corner Overtaking?

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  • Yuchao Li

    (Xinjiang Research Center for High-Quality Macroeconomic Development, Xinjiang University, Urumqi 830002, China
    School of Economics and Management, Xinjiang University, Urumqi 830002, China)

  • Lijie Zhang

    (Xinjiang Research Center for High-Quality Macroeconomic Development, Xinjiang University, Urumqi 830002, China
    School of Economics and Management, Xinjiang University, Urumqi 830002, China)

  • Jiamin Liu

    (Xinjiang Research Center for High-Quality Macroeconomic Development, Xinjiang University, Urumqi 830002, China
    School of Economics and Management, Xinjiang University, Urumqi 830002, China)

  • Xinpei Qiao

    (Department of East-Asia Studies Graduate School, PaiChai University, Daejeon 35337, Republic of Korea)

Abstract

The purpose of the dual-credit policy is to promote the healthy and sustainable development of China’s new energy vehicle industry. This study took the dual-credit policy as the background, took the new energy vehicle listed companies in the Shanghai and Shenzhen stock markets in China as the research object, and used the difference-in-difference model to verify the impact of the dual-credit policy on the performance of new energy vehicle companies and identify the mechanism behind its role. The study found the following: (1) the dual-credit policy significantly improves the performance of listed new energy vehicle companies, but the marginal utility of the policy will diminish; (2) the impact of the dual-credit policy on the performance of domestic listed new energy vehicle companies is better than that of joint venture listed new energy vehicle companies; (3) the dual-credit policy mainly enhances the competitiveness of listed new energy vehicle companies through the market expectation of enterprises and market competition mechanism; (4) there is heterogeneity in the mechanism of the dual-credit policy for domestic and joint venture new energy vehicles. The research in this paper is helpful for evaluating the economic effect of the dual-credit policy, and it has implications for the healthy and orderly development of the new energy vehicle industry.

Suggested Citation

  • Yuchao Li & Lijie Zhang & Jiamin Liu & Xinpei Qiao, 2023. "Can the Dual-Credit Policy Help China’s New Energy Vehicle Industry Achieve Corner Overtaking?," Sustainability, MDPI, vol. 15(3), pages 1-22, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2406-:d:1050319
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