IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v177y2023ics030142152300112x.html
   My bibliography  Save this article

Policy incentives, government subsidies, and technological innovation in new energy vehicle enterprises: Evidence from China

Author

Listed:
  • Jiang, Zhangsheng
  • Xu, Chenghao

Abstract

As the first step toward establishing the development of new energy vehicles (NEVs) as a national strategic priority, China's New Energy Vehicle Pilot City (NEVPC) policy has far-reaching significance for helping to develop China's capabilities in NEV industry. The existing literature focuses on the city- and industry-level impacts of this policy but ignores the important role of individual enterprises as innovation agents. In addition, in assessing the policy's effects technological innovation for NEV enterprises is typically measured in terms of output quantity, with no emphasis on innovation efficiency. This study uses balanced panel data from 2006 to 2020 covering 196 listed Chinese NEV enterprises to examine the mechanism and impact of the NEVPC policy on technological innovation within NEV enterprises. We show that the policy has achieved the goal of expanding government subsidies and had a significantly positive impact on the number of technological innovations produced by these enterprises, via a partial mediation effect. However, neither the policy nor the mechanism of government subsidies is effective in improving the efficiency of technological innovations for NEV enterprises. These results have important implications for formulating and improving policies for the NEV industry.

Suggested Citation

  • Jiang, Zhangsheng & Xu, Chenghao, 2023. "Policy incentives, government subsidies, and technological innovation in new energy vehicle enterprises: Evidence from China," Energy Policy, Elsevier, vol. 177(C).
    • Handle: RePEc:eee:enepol:v:177:y:2023:i:c:s030142152300112x
    DOI: 10.1016/j.enpol.2023.113527
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142152300112X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2023.113527?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.

    References listed on IDEAS

    as
    1. Irene Botosaru & Federico H. Gutierrez, 2018. "Difference‐in‐differences when the treatment status is observed in only one period," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(1), pages 73-90, January.
    2. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    3. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    4. Zhang, Lei & Qin, Quande, 2018. "China’s new energy vehicle policies: Evolution, comparison and recommendation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 57-72.
    5. Liu, Xiaoling & Sun, Xiaohua & Li, Mingshan & Zhai, Yu, 2020. "The effects of demonstration projects on electric vehicle diffusion: An empirical study in China," Energy Policy, Elsevier, vol. 139(C).
    6. Gass, V. & Schmidt, J. & Schmid, E., 2014. "Analysis of alternative policy instruments to promote electric vehicles in Austria," Renewable Energy, Elsevier, vol. 61(C), pages 96-101.
    7. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    8. Huang, Zhehao & Liao, Gaoke & Li, Zhenghui, 2019. "Loaning scale and government subsidy for promoting green innovation," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 148-156.
    9. Yu, Feifei & Guo, Yue & Le-Nguyen, Khuong & Barnes, Stuart J. & Zhang, Weiting, 2016. "The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China," Energy Policy, Elsevier, vol. 89(C), pages 106-113.
    10. Liu, Lanjian & Zhang, Tian & Avrin, Anne-Perrine & Wang, Xianwen, 2020. "Is China's industrial policy effective? An empirical study of the new energy vehicles industry," Technology in Society, Elsevier, vol. 63(C).
    11. Bronzini, Raffaello & Piselli, Paolo, 2016. "The impact of R&D subsidies on firm innovation," Research Policy, Elsevier, vol. 45(2), pages 442-457.
    12. Shanjun Li & Xianglei Zhu & Yiding Ma & Fan Zhang & Hui Zhou, 2022. "The Role of Government in the Market for Electric Vehicles: Evidence from China," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(2), pages 450-485, March.
    13. Yuan, Xueliang & Liu, Xin & Zuo, Jian, 2015. "The development of new energy vehicles for a sustainable future: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 298-305.
    14. Siddiqui, Afzal S. & Marnay, Chris & Wiser, Ryan H., 2007. "Real options valuation of US federal renewable energy research, development, demonstration, and deployment," Energy Policy, Elsevier, vol. 35(1), pages 265-279, January.
    15. Meckling, Jonas & Nahm, Jonas, 2019. "The politics of technology bans: Industrial policy competition and green goals for the auto industry," Energy Policy, Elsevier, vol. 126(C), pages 470-479.
    16. Susheng Wang & Gang Chen & Dawei Huang, 2021. "Can the New Energy Vehicle Pilot Policy Achieve Green Innovation and Emission Reduction?—A Difference-in-Differences Analysis on the Evaluation of China’s New Energy Fiscal Subsidy Policy," Sustainability, MDPI, vol. 13(15), pages 1-21, August.
    17. Tang, Chang & Xu, Yuanyuan & Hao, Yu & Wu, Haitao & Xue, Yan, 2021. "What is the role of telecommunications infrastructure construction in green technology innovation? A firm-level analysis for China," Energy Economics, Elsevier, vol. 103(C).
    18. Yao, Xusheng & Ma, Shoufeng & Bai, Yin & Jia, Ning, 2022. "When are new energy vehicle incentives effective? Empirical evidence from 88 pilot cities in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 207-224.
    19. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    20. Qiuyun Zhao & Zeyu Li & Zuoxiang Zhao & Jinqiu Ma, 2019. "Industrial Policy and Innovation Capability of Strategic Emerging Industries: Empirical Evidence from Chinese New Energy Vehicle Industry," Sustainability, MDPI, vol. 11(10), pages 1-17, May.
    21. Dong, Feng & Liu, Yajie, 2020. "Policy evolution and effect evaluation of new-energy vehicle industry in China," Resources Policy, Elsevier, vol. 67(C).
    22. Choi, Joonhwan & Lee, Jaegul, 2017. "Repairing the R&D market failure: Public R&D subsidy and the composition of private R&D," Research Policy, Elsevier, vol. 46(8), pages 1465-1478.
    23. Lynne G. Zucker & Michael R. Darby, 2009. "Star Scientists, Innovation and Regional and National Immigration," Chapters, in: David B. Audretsch & Robert E. Litan & Robert Strom (ed.), Entrepreneurship and Openness, chapter 6, Edward Elgar Publishing.
    24. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    25. Ahn, Joon Mo & Lee, Weonvin & Mortara, Letizia, 2020. "Do government R&D subsidies stimulate collaboration initiatives in private firms?," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    26. John Gardner, 2022. "Two-stage differences in differences," Papers 2207.05943, arXiv.org.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xue, Yi & Zhang, Xinzhi, 2024. "Digital transformation and corporate capital structure: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 84(C).
    2. Li, Yutao & Zhang, Jinning & Lyu, Yanwei, 2023. "Does telecommunications infrastructure promote entrepreneurship in developing countries? Evidence from a quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 106-119.
    3. Zhang, Zhijian & Zhang, Lingyan & Wu, Shu, 2024. "Does ethanol-blended gasoline policy improve air quality in China?," Energy Economics, Elsevier, vol. 134(C).
    4. Chen, Yufeng & Ni, Liangfu & Liu, Kelong, 2021. "Does China's new energy vehicle industry innovate efficiently? A three-stage dynamic network slacks-based measure approach," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    5. Balia, S.; & Brau, R.; & Pau, S.;, 2025. "One plus one makes less than two? Consolidation policies and mortality in the Italian NHS," Health, Econometrics and Data Group (HEDG) Working Papers 25/02, HEDG, c/o Department of Economics, University of York.
    6. Cui, Yi, 2024. "Place-based policies and capital misallocation: Evidence from Chinese cities," Economic Systems, Elsevier, vol. 48(4).
    7. Ma, Rui & Guo, Fei & Li, Dongdong, 2024. "Can public data availability affect stock price crash risk? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 94(C).
    8. Mingxia Shi & Yibo Wang, 2023. "Do Green Transfer Payments Contribute to Carbon Emission Reduction?," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    9. Andrea Mattozzi & Samuel Nocito & Francesco Sobbrio, 2022. "Fact-Checking Politicians," CESifo Working Paper Series 10122, CESifo.
    10. Carlos F. Avenancio-León & Alessio Piccolo & Leslie Sheng Shen, 2024. "Self-reinforcing Glass Ceilings," Working Papers 24-14, Federal Reserve Bank of Boston.
    11. Chen, Hongwen & Cheng, Ken & Zhang, Meiyang, 2023. "Does geographic proximity affect firms’ cross-regional development? Evidence from high-speed rail construction in China," Economic Modelling, Elsevier, vol. 126(C).
    12. Evren Damar & Ian Lange & Caitlin McKennie & Mirko Moro, 2024. "Banking deregulation and consumption of home durables," Climatic Change, Springer, vol. 177(3), pages 1-20, March.
    13. Blemings, Benjamin & Zhang, Peilu & Neill, Clinton L., 2023. "Where is the value? The impacts of sow gestation crate laws on pork supply and consumer value perceptions," Food Policy, Elsevier, vol. 117(C).
    14. HOSHI, Kisho, 2023. "New Medical Schools, Access to Doctors and Health Outcomes : Evidence from Japan," CEI Working Paper Series 2023-05, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    15. Duan, Wenqi & Jiang, Mingming & Qi, Jianhong, 2024. "Poverty or pollution: The environmental cost of E-commerce for poverty reduction in China," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    16. Hufschmidt, Patrick, 2023. "Green parties and building permissions: Evidence from Bavarian municipalities," Ruhr Economic Papers 1052, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    17. Bu, Xiaoning & Zhang, Yuanhao & Xing, Yafei, 2024. "Joint governance corporate alliance and the share of labour income: Evidence from China's private firms," Economic Modelling, Elsevier, vol. 139(C).
    18. Peter Blair & Elijah Neilson, 2023. "Divorce and Property Division Laws Shape Human Capital Investment," Working Papers 2023-020, Human Capital and Economic Opportunity Working Group.
    19. Shan Miao & Yandi Tuo & Xi Zhang & Xiang Hou, 2023. "Green Fiscal Policy and ESG Performance: Evidence from the Energy-Saving and Emission-Reduction Policy in China," Energies, MDPI, vol. 16(9), pages 1-19, April.
    20. Cheng, Wenyin & Meng, Bo & Gao, Yuning & Dollar, David, 2024. "The paradox of decelerated technology importation and accelerated innovation in China: Insights from national technology development zones," China Economic Review, Elsevier, vol. 88(C).

    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:enepol:v:177:y:2023:i:c:s030142152300112x. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.elsevier.com/locate/enpol .

    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.