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Functional industrial policy mechanism under natural resource conflict: A case study on the Chinese new energy vehicle industry

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  • Wang, Yufei
  • Liao, Zhongju

Abstract

Energy conflict is one of the natural resource conflicts that China is currently facing. In order to alleviate the conflict in non-renewable resources such as oil and natural gas, industrial policy is a widely used means by the government. In the early stage, China's industrial policies were selective industrial policies, which tended to replace market competition with government choice. Based on the case study of China's new energy vehicle industry, the industrial policy has been gradually transformed into functional industrial policies, and the policy objective is to create conditions to improve industrial competitiveness. The design of industrial policy tools is based on the market mechanism, strengthens the construction of infrastructure such as charging piles and hydrogen stations, and supports the R&D of core components of new energy vehicle enterprises. It is suggested that China's new energy vehicle industrial policy should return to the fundamental goal of energy conservation and emission reduction, avoid the government's choice to replace the market mechanism, and build a new industrial policy operation structure with the cooperation of the government, market and third-party professional institutions.

Suggested Citation

  • Wang, Yufei & Liao, Zhongju, 2023. "Functional industrial policy mechanism under natural resource conflict: A case study on the Chinese new energy vehicle industry," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723001253
    DOI: 10.1016/j.resourpol.2023.103417
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    References listed on IDEAS

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