IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v298y2024ics0360544224010958.html
   My bibliography  Save this article

Does the new energy vehicles subsidy policy decrease the carbon emissions of the urban transport industry? Evidence from Chinese cities in Yangtze River Delta

Author

Listed:
  • Li, Jiachen
  • Jiang, Meiru
  • Li, Ge

Abstract

New energy vehicles (NEV) have become an important driving force for carbon reduction in the transportation industry. This paper adopts the extended environmental pressure assessment (STIRPAT) model and the time-varying difference in differences (DID) model to evaluate the effectiveness of the NEV subsidy policy to achieve sustainable governance. The results show that the NEV subsidy policy can significantly decrease the carbon emission of the transport industry. The mechanism analysis results indicate that the NEV subsidy policy can decrease carbon emissions by promoting a green transformation of the consumer car purchasing structure. Further analysis found that a “fraudulent subsidy” can significantly weaken the policy effect of subsidies. The results of heterogeneity analysis indicate that the subsidy policies introduced by different levels of government have different effects. The subsidy policy of the central government has a more significant effect, and repeated subsidies from central and local governments will weaken the policy's effectiveness. These findings provide valuable insights for policymakers in developing countries to optimize subsidies for new energy vehicles in reducing carbon emissions in the transportation industry.

Suggested Citation

  • Li, Jiachen & Jiang, Meiru & Li, Ge, 2024. "Does the new energy vehicles subsidy policy decrease the carbon emissions of the urban transport industry? Evidence from Chinese cities in Yangtze River Delta," Energy, Elsevier, vol. 298(C).
    • Handle: RePEc:eee:energy:v:298:y:2024:i:c:s0360544224010958
    DOI: 10.1016/j.energy.2024.131322
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224010958
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.131322?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. Li, Ge & Wen, Huwei, 2023. "The low-carbon effect of pursuing the honor of civilization? A quasi-experiment in Chinese cities," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 343-357.
    2. Gao, Yuchen & Hu, Yimei & Liu, Xielin & Zhang, Huanren, 2021. "Can public R&D subsidy facilitate firms’ exploratory innovation? The heterogeneous effects between central and local subsidy programs," Research Policy, Elsevier, vol. 50(4).
    3. Ayetor, G.K. & Quansah, David A. & Adjei, Eunice A., 2020. "Towards zero vehicle emissions in Africa: A case study of Ghana," Energy Policy, Elsevier, vol. 143(C).
    4. Changzheng Zhu & Dawei Gao, 2019. "A Research on the Factors Influencing Carbon Emission of Transportation Industry in “the Belt and Road Initiative” Countries Based on Panel Data," Energies, MDPI, vol. 12(12), pages 1-17, June.
    5. Huang, Junbing & Li, Xinghao & Wang, Yajun & Lei, Hongyan, 2021. "The effect of energy patents on China's carbon emissions: Evidence from the STIRPAT model," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    6. He, Ling-Yun & Chen, Yu, 2013. "Thou shalt drive electric and hybrid vehicles: Scenario analysis on energy saving and emission mitigation for road transportation sector in China," Transport Policy, Elsevier, vol. 25(C), pages 30-40.
    7. York, Richard & Rosa, Eugene A. & Dietz, Thomas, 2003. "STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts," Ecological Economics, Elsevier, vol. 46(3), pages 351-365, October.
    8. 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.
    9. Bel, Germà & Holst, Maximilian, 2018. "Evaluation of the impact of Bus Rapid Transit on air pollution in Mexico City," Transport Policy, Elsevier, vol. 63(C), pages 209-220.
    10. Skerlos, Steven J. & Winebrake, James J., 2010. "Targeting plug-in hybrid electric vehicle policies to increase social benefits," Energy Policy, Elsevier, vol. 38(2), pages 705-708, February.
    11. Yoo, Sunbin & Koh, Kyung Woong & Yoshida, Yoshikuni, 2020. "Are consumers abandoning diesel automobiles because of contrasting diesel policies? Evidence from the Korean automobile market," Energy Economics, Elsevier, vol. 92(C).
    12. Weixing Liu & Hongtao Yi, 2020. "What Affects the Diffusion of New Energy Vehicles Financial Subsidy Policy? Evidence from Chinese Cities," IJERPH, MDPI, vol. 17(3), pages 1-15, January.
    13. Wang, Jie & He, Ya-qun & Wang, Heng-guang & Wu, Ru-fei, 2023. "Low-carbon promotion of new energy vehicles: A quadrilateral evolutionary game," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    14. Kong, Deyang & Xia, Quhong & Xue, Yixi & Zhao, Xin, 2020. "Effects of multi policies on electric vehicle diffusion under subsidy policy abolishment in China: A multi-actor perspective," Applied Energy, Elsevier, vol. 266(C).
    15. Sergio Afcha & Jose García-Quevedo, 2016. "The impact of R&D subsidies on R&D employment composition," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(6), pages 955-975.
    16. Zhou, Jianghua & Li, Jizhen & Jiao, Hao & Qiu, Hang & Liu, Zixu, 2020. "The more funding the better? The moderating role of knowledge stock on the effects of different government-funded research projects on firm innovation in Chinese cultural and creative industries," Technovation, Elsevier, vol. 92.
    17. Sun, Chuanwang & Zhang, Wenyue & Luo, Yuan & Xu, Yonghong, 2019. "The improvement and substitution effect of transportation infrastructure on air quality: An empirical evidence from China's rail transit construction," Energy Policy, Elsevier, vol. 129(C), pages 949-957.
    18. Wu, Zhanchi & Fan, Xiangjun & Zhu, Bangzhu & Xia, Jiahui & Zhang, Lin & Wang, Ping, 2022. "Do government subsidies improve innovation investment for new energy firms: A quasi-natural experiment of China's listed companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    19. Li, Ping & Zhang, ZhongXiang, 2023. "The effects of new energy vehicle subsidies on air quality: Evidence from China," Energy Economics, Elsevier, vol. 120(C).
    20. Li, Hai-ling & Zhu, Xue-hong & Chen, Jin-yu & Jiang, Fei-tao, 2019. "Environmental regulations, environmental governance efficiency and the green transformation of China's iron and steel enterprises," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    21. Sheldon, Tamara L. & Dua, Rubal, 2019. "Measuring the cost-effectiveness of electric vehicle subsidies," Energy Economics, Elsevier, vol. 84(C).
    22. Wang, Zhongcheng & Li, Xinyue & Xue, Xinhong & Liu, Yahuan, 2022. "More government subsidies, more green innovation? The evidence from Chinese new energy vehicle enterprises," Renewable Energy, Elsevier, vol. 197(C), pages 11-21.
    23. DeShazo, J.R. & Sheldon, Tamara L. & Carson, Richard T., 2017. "Designing policy incentives for cleaner technologies: Lessons from California's plug-in electric vehicle rebate program," Journal of Environmental Economics and Management, Elsevier, vol. 84(C), pages 18-43.
    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. Huang, Junbing & Wang, Yajun & Lei, Hongyan & Chen, Xiang, 2024. "A technology-driven way to carbon peak and its impact mechanism," Energy, Elsevier, vol. 297(C).
    2. Yujing Guo & Qian Zhang & Kin Keung Lai & Yingqin Zhang & Shubin Wang & Wanli Zhang, 2020. "The Impact of Urban Transportation Infrastructure on Air Quality," Sustainability, MDPI, vol. 12(14), pages 1-25, July.
    3. Guo, Bingnan & Hu, Peiji & Lin, Ji, 2024. "The effect of digital infrastructure development on enterprise green transformation," International Review of Financial Analysis, Elsevier, vol. 92(C).
    4. Yue-Jun Zhang & Jing-Yue Liu, 2019. "Does carbon emissions trading affect the financial performance of high energy-consuming firms in China?," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 95(1), pages 91-111, January.
    5. Meleddu, Marta & Vecco, Marilena & Mazzanti, Massimiliano, 2024. "The Role of Voluntary Environmental Policies Towards Achieving Circularity," Ecological Economics, Elsevier, vol. 219(C).
    6. Liu, Xiaoguang & Ji, Qiang & Yu, Jian, 2021. "Sustainable development goals and firm carbon emissions: Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 103(C).
    7. Yue Wang & Yang Wen & Yingying Xu & Lei Shi & Xuan Yang, 2022. "Health Benefits Quantification for New-Energy Vehicles Promotion: A Case Study of Beijing," IJERPH, MDPI, vol. 19(21), pages 1-12, October.
    8. Zhang, Chuanguo & Nian, Jiang, 2013. "Panel estimation for transport sector CO2 emissions and its affecting factors: A regional analysis in China," Energy Policy, Elsevier, vol. 63(C), pages 918-926.
    9. Yu, Yantuan & Zhang, Ning, 2021. "Low-carbon city pilot and carbon emission efficiency: Quasi-experimental evidence from China," Energy Economics, Elsevier, vol. 96(C).
    10. Yan, Bin & Wang, Feng & Dong, Mingru & Ren, Jing & Liu, Juan & Shan, Jing, 2022. "How do financial spatial structure and economic agglomeration affect carbon emission intensity? Theory extension and evidence from China," Economic Modelling, Elsevier, vol. 108(C).
    11. Gao, Yuchen & Hu, Yimei & Liu, Xielin & Zhang, Huanren, 2021. "Can public R&D subsidy facilitate firms’ exploratory innovation? The heterogeneous effects between central and local subsidy programs," Research Policy, Elsevier, vol. 50(4).
    12. Sheldon, Tamara L. & Dua, Rubal, 2020. "Effectiveness of China's plug-in electric vehicle subsidy," Energy Economics, Elsevier, vol. 88(C).
    13. Pan, Xin & Chen, Xuanjin & Qiu, Shumin, 2024. "Pushing boundaries or overstepping? Exploring the paradoxical impact of radical innovation on government subsidies in Chinese SMEs," Technovation, Elsevier, vol. 132(C).
    14. Sheldon, Tamara L. & Dua, Rubal, 2021. "How responsive is Saudi new vehicle fleet fuel economy to fuel-and vehicle-price policy levers?," Energy Economics, Elsevier, vol. 97(C).
    15. 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.
    16. Bo Yao & Fangbin Qiao, 2023. "The Heterogeneous Effects of Central and Local Subsidies on Firms’ Innovation," Sustainability, MDPI, vol. 15(2), pages 1-15, January.
    17. Wang, Yongpei & Guan, Zhongyu & Zhang, Qian, 2023. "Railway opening and carbon emissions in distressed areas: Evidence from China's state-level poverty-stricken counties," Transport Policy, Elsevier, vol. 130(C), pages 55-67.
    18. Chen, Changhua & Luo, Yuqing & Zou, Hong & Huang, Junbing, 2023. "Understanding the driving factors and finding the pathway to mitigating carbon emissions in China's Yangtze River Delta region," Energy, Elsevier, vol. 278(PB).
    19. Azarafshar, Roshanak & Vermeulen, Wessel N., 2020. "Electric vehicle incentive policies in Canadian provinces," Energy Economics, Elsevier, vol. 91(C).
    20. Burra, Lavan T. & Sommer, Stephan & Vance, Colin, 2024. "Free-ridership in subsidies for company- and private electric vehicles," Energy Economics, Elsevier, vol. 131(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:energy:v:298:y:2024:i:c:s0360544224010958. 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.journals.elsevier.com/energy .

    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.