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Leapfrogging or Stalling Out? Electric Vehicles in China

Author

Listed:
  • Howell, Sabrina

    (Harvard University)

  • Lee, Henry

    (Harvard University)

  • Heal, Adam

    (Harvard University)

Abstract

China has ambitious goals for developing and deploying electric vehicles (EV). The stated intention is to "leapfrog" the auto industries of other countries and seize the emerging EV market. Since 2009, policies have included generous subsidies for consumers in certain locations, as well as strong pressure on local governments to purchase EVs. Yet four years into the program, progress has fallen far short of the intended targets. China's EV industry faces the same challenges as companies in the West: a) high battery costs; b) inadequate range between charges; and c) no obvious infrastructure model for vehicle charging. In addition, China's industry is constrained by four domestic barriers. Mass EV deployment in China likely requires substantial policy adjustment. In particular, it will be necessary to permit foreign EV technologies relatively free market entry. In turn, this requires greater foreign IP protection. China must also consolidate its domestic industry and place greater emphasis on smaller, cheaper vehicles aimed at domestic, lower-end markets. If EVs are to contribute to air quality improvement, the government must ensure that the electricity powering EVs is cleaner than the current mix, particularly in Northeast regions of China.

Suggested Citation

  • Howell, Sabrina & Lee, Henry & Heal, Adam, 2014. "Leapfrogging or Stalling Out? Electric Vehicles in China," Working Paper Series rwp14-035, Harvard University, John F. Kennedy School of Government.
    • Handle: RePEc:ecl:harjfk:rwp14-035
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    Cited by:

    1. Ou, Shiqi & Hao, Xu & Lin, Zhenhong & Wang, Hewu & Bouchard, Jessey & He, Xin & Przesmitzki, Steven & Wu, Zhixin & Zheng, Jihu & Lv, Renzhi & Qi, Liang & LaClair, Tim J., 2019. "Light-duty plug-in electric vehicles in China: An overview on the market and its comparisons to the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 747-761.
    2. Guoqiang Zhang & Yanmei Xu & Juan Zhang, 2016. "Consumer-Oriented Policy towards Diffusion of Electric Vehicles: City-Level Evidence from China," Sustainability, MDPI, vol. 8(12), pages 1-16, December.
    3. Dmitry V. Pelegov & Jean-Jacques Chanaron, 2022. "Electric Car Market Analysis Using Open Data: Sales, Volatility Assessment, and Forecasting," Sustainability, MDPI, vol. 15(1), pages 1-15, December.
    4. Na Zhou & Qiaosheng Wu & Xiangping Hu, 2020. "Research on the Policy Evolution of China’s New Energy Vehicles Industry," Sustainability, MDPI, vol. 12(9), pages 1-17, May.
    5. Helveston, John P. & Wang, Yanmin & Karplus, Valerie J. & Fuchs, Erica R.H., 2019. "Institutional complementarities: The origins of experimentation in China’s plug-in electric vehicle industry," Research Policy, Elsevier, vol. 48(1), pages 206-222.
    6. Hofmann, Jana & Guan, Dabo & Chalvatzis, Konstantinos & Huo, Hong, 2016. "Assessment of electrical vehicles as a successful driver for reducing CO2 emissions in China," Applied Energy, Elsevier, vol. 184(C), pages 995-1003.
    7. Xu, Lei & Su, Jun, 2016. "From government to market and from producer to consumer: Transition of policy mix towards clean mobility in China," Energy Policy, Elsevier, vol. 96(C), pages 328-340.
    8. Martin Kalthaus & Jiatang Sun, 2021. "Determinants of Electric Vehicle Diffusion in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(3), pages 473-510, November.
    9. Prud'homme, Dan & von Zedtwitz, Max, 2019. "Managing “forced” technology transfer in emerging markets: The case of China," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.

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