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Analysis of product efficiency of hybrid vehicles and promotion policies

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  • Choi, Hyundo
  • Oh, Inha

Abstract

The key aim of this study is to evaluate the product efficiency of current hybrid vehicles and suggest effective policies to promote hybrid vehicles in the Korean automobile market and development trends of hybrid vehicles. The efficiency levels for car models sold in Korea, including hybrid ones, were measured using the recently developed discrete additive data envelopment analysis (DEA) model that reflects consumer preference. The result of the analysis shows that current hybrid vehicles on the market are still at lower competitive advantage than traditional car models with conventional combustion engines and we can suggest a mix of incentive policies to promote the competitiveness of hybrid vehicles. In addition, we also identify two distinctive trends of hybrid vehicle development: environment-oriented hybrid vehicles and performance-oriented hybrid vehicles. It implies that the government should take account of development trends of hybrid vehicles to achieve the policy goals in designing support schemes and automobile companies that are willing to develop hybrid vehicles can also gain some insights for making strategic decisions.

Suggested Citation

  • Choi, Hyundo & Oh, Inha, 2010. "Analysis of product efficiency of hybrid vehicles and promotion policies," Energy Policy, Elsevier, vol. 38(5), pages 2262-2271, May.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:5:p:2262-2271
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    2. Wang, Ning & Tang, Linhao & Pan, Huizhong, 2018. "Analysis of public acceptance of electric vehicles: An empirical study in Shanghai," Technological Forecasting and Social Change, Elsevier, vol. 126(C), pages 284-291.
    3. Dong-Hyun Oh & JongWuk Ahn & Sinwoo Lee & Hyundo Choi, 2021. "Measuring technical inefficiency and CO2 shadow price of Korean fossil-fuel generation companies using deterministic and stochastic approaches," Energy & Environment, , vol. 32(3), pages 403-423, May.
    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. Huichen Jiang & Liyan Han & Yongbin Ding & Yifan He, 2018. "Operating Efficiency Evaluation of China Listed Automotive Firms: 2012–2016," Sustainability, MDPI, vol. 10(1), pages 1-22, January.
    6. Liu, Yingqi & Kokko, Ari, 2013. "Who does what in China’s new energy vehicle industry?," Energy Policy, Elsevier, vol. 57(C), pages 21-29.
    7. González, Eduardo & Cárcaba, Ana & Ventura, Juan, 2015. "How car dealers adjust prices to reach the product efficiency frontier in the Spanish automobile market," Omega, Elsevier, vol. 51(C), pages 38-48.
    8. Rao, Zhonghao & Wang, Shuangfeng, 2011. "A review of power battery thermal energy management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4554-4571.

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