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Credit-pool policy and new energy vehicle industrial innovation from the perspective of market regulation

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  • Fan, Xia
  • Li, Chuanju

Abstract

The effectiveness of the credit-pool policy (CPP) in balancing the supply and demand for credits, stabilizing credit prices, and fostering industrial innovation is crucial for the high-quality development of China's new energy vehicle (NEV) industry. This paper employs Agent-Based Modeling to simulate the development of the NEV industry from 2010 to 2035, both with and without the CPP. Additionally, the Differences-in-Differences method is utilized to quantitatively assess the CPP's impact on industrial innovation. The findings indicate that the CPP has significantly enhanced research and development (R&D) investment across the industry (increase of 2.3 % over the study period), particularly in product R&D (increase of 1.84 % over the study period), while showing less impact on craft R&D. Mechanism analysis reveals that the CPP contributes by stabilizing future expectations and increasing operational revenue. Furthermore, the CPP has improved NEV performance alongside promoting industrial innovation, thereby enhancing the market share of NEVs.

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  • Fan, Xia & Li, Chuanju, 2025. "Credit-pool policy and new energy vehicle industrial innovation from the perspective of market regulation," Energy, Elsevier, vol. 322(C).
    • Handle: RePEc:eee:energy:v:322:y:2025:i:c:s0360544225011600
    DOI: 10.1016/j.energy.2025.135518
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