IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v87y2025icp675-688.html
   My bibliography  Save this article

How do climate risks intersect with the rise of new energy vehicles in China?

Author

Listed:
  • Qiu, Lianhong
  • Wong, Xiaoqing
  • Zhang, Teng
  • Song, Yubing

Abstract

Exploring the complex relationships between climate risk and new energy vehicles is vital to advancing energy security and sustainable development in China. To quantify the dynamic correlations between the climate physical risk index (PRI), the transition risk index (TRI) and the sale of new energy vehicle (NEV), this study employs the time-varying parameter vector autoregression model with stochastic volatility, introducing oil price as a control variable. The quantitative analyses demonstrate that PRI has a negative effect on NEV, indicating that PRI decreases NEV in China. In contrast, TRI has a positive effect on NEV, indicating that TRI might increase NEV. Conversely, NEV positively and negatively impacts PRI, indicating challenges and opportunities in PRI mitigation. While NEV generally elevated TRI, PRI decreased during 2019–2020. Moreover, while PRI has a positive effect on TRI, it initially increases PRI and then reverses. As climate change intensifies globally, this study offers valuable insights for authorities to simultaneously boost NEV while addressing PRI and promoting energy security.

Suggested Citation

  • Qiu, Lianhong & Wong, Xiaoqing & Zhang, Teng & Song, Yubing, 2025. "How do climate risks intersect with the rise of new energy vehicles in China?," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 675-688.
    • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:675-688
    DOI: 10.1016/j.eap.2025.06.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592625002486
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2025.06.021?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

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    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:ecanpo:v:87:y:2025:i:c:p:675-688. 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.journals.elsevier.com/economic-analysis-and-policy .

    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.