IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i12p3323-d240257.html
   My bibliography  Save this article

Effect of Policy Incentives on the Uptake of Electric Vehicles in China

Author

Listed:
  • Wenbo Li

    (Business School, Jiangsu Normal University, No.101 Shanghai Road, Xuzhou 221116, China)

  • Ruyin Long

    (School of Management, China University of Mining and Technology, No.1 Daxue Road, Xuzhou 221116, China)

  • Hong Chen

    (School of Management, China University of Mining and Technology, No.1 Daxue Road, Xuzhou 221116, China)

  • Feiyu Chen

    (School of Management, China University of Mining and Technology, No.1 Daxue Road, Xuzhou 221116, China)

  • Xiao Zheng

    (Business School, Jiangsu Normal University, No.101 Shanghai Road, Xuzhou 221116, China)

  • Muyi Yang

    (Centre for Energy Policy, University of Technology Sydney, P.O. Box 123, Broadway, Sydney NSW 2007, Australia)

Abstract

In the backdrop of growing public concerns about climate change and air pollution, and the contribution of petroleum combustion in the transport sector to these issues, China has introduced a range of policy incentives for promoting the uptake of electric vehicles (EVs). These incentives have resulted in a rapid increase in EV stocks since the early 2010s, and this trend is expected to continue, or even accelerate, in the years to come, which would, in turn, lead to a policy-oriented EV market. The primary objective of the project is to develop an understanding of the effect of various policy incentives on EV uptake based on annual data of 43 cities from 2011 to 2017, and these policies mainly refer to those that focus on EV purchasing, registering, driving, and charging stages. The novelty of this paper is that we focused on policy effect on EV adoption behavior, rather than adoption intention which has widely been analyzed in previous studies. Results showed that the abolishment of purchasing and driving restriction, government subsidies, purchase tax exemption, and dedicated license plates significantly promote EV diffusion, and the effect of the two restrictions are more powerful. Thus, this study suggested that abolishment of purchasing and driving restrictions can be insisted to drive EV market share, meanwhile improving policies that can guide consumers through various motivations are also necessary.

Suggested Citation

  • Wenbo Li & Ruyin Long & Hong Chen & Feiyu Chen & Xiao Zheng & Muyi Yang, 2019. "Effect of Policy Incentives on the Uptake of Electric Vehicles in China," Sustainability, MDPI, vol. 11(12), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:12:p:3323-:d:240257
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/12/3323/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/12/3323/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wang, Ning & Tang, Linhao & Pan, Huizhong, 2017. "Effectiveness of policy incentives on electric vehicle acceptance in China: A discrete choice analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 210-218.
    2. Zhang, Xian & Wang, Ke & Hao, Yu & Fan, Jing-Li & Wei, Yi-Ming, 2013. "The impact of government policy on preference for NEVs: The evidence from China," Energy Policy, Elsevier, vol. 61(C), pages 382-393.
    3. Yue-Jun Zhang & Shu-Hui Li, 2019. "The impact of investor sentiment on crude oil market risks: evidence from the wavelet approach," Quantitative Finance, Taylor & Francis Journals, vol. 19(8), pages 1357-1371, August.
    4. Huiming Gong & Michael Wang & Hewu Wang, 2013. "New energy vehicles in China: policies, demonstration, and progress," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 18(2), pages 207-228, February.
    5. Whitehead, Jake & Franklin, Joel P. & Washington, Simon, 2014. "The impact of a congestion pricing exemption on the demand for new energy efficient vehicles in Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 24-40.
    6. Jichao Geng & Ruyin Long & Hong Chen & Ting Yue & Wenbo Li & Qianwen Li, 2017. "Exploring Multiple Motivations on Urban Residents’ Travel Mode Choices: An Empirical Study from Jiangsu Province in China," Sustainability, MDPI, vol. 9(1), pages 1-16, January.
    7. Matthew J. Beck & John M. Rose & Stephen P. Greaves, 2017. "I can’t believe your attitude: a joint estimation of best worst attitudes and electric vehicle choice," Transportation, Springer, vol. 44(4), pages 753-772, July.
    8. Wang, Qunwei & Wang, Yizhong & Zhou, P. & Wei, Hongye, 2017. "Whole process decomposition of energy-related SO2 in Jiangsu Province, China," Applied Energy, Elsevier, vol. 194(C), pages 679-687.
    9. Green, Erin H. & Skerlos, Steven J. & Winebrake, James J., 2014. "Increasing electric vehicle policy efficiency and effectiveness by reducing mainstream market bias," Energy Policy, Elsevier, vol. 65(C), pages 562-566.
    10. Ma, Shao-Chao & Fan, Ying & Feng, Lianyong, 2017. "An evaluation of government incentives for new energy vehicles in China focusing on vehicle purchasing restrictions," Energy Policy, Elsevier, vol. 110(C), pages 609-618.
    11. Zhang, Yong & Yu, Yifeng & Zou, Bai, 2011. "Analyzing public awareness and acceptance of alternative fuel vehicles in China: The case of EV," Energy Policy, Elsevier, vol. 39(11), pages 7015-7024.
    12. Li, Wenbo & Long, Ruyin & Chen, Hong, 2016. "Consumers’ evaluation of national new energy vehicle policy in China: An analysis based on a four paradigm model," Energy Policy, Elsevier, vol. 99(C), pages 33-41.
    13. Xingping Zhang & Jian Xie & Rao Rao & Yanni Liang, 2014. "Policy Incentives for the Adoption of Electric Vehicles across Countries," Sustainability, MDPI, vol. 6(11), pages 1-23, November.
    14. 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.
    15. Axsen, Jonn & TyreeHageman, Jennifer & Lentz, Andy, 2012. "Lifestyle practices and pro-environmental technology," Ecological Economics, Elsevier, vol. 82(C), pages 64-74.
    16. Shanyong Wang & Jin Fan & Dingtao Zhao & Shu Yang & Yuanguang Fu, 2016. "Predicting consumers’ intention to adopt hybrid electric vehicles: using an extended version of the theory of planned behavior model," Transportation, Springer, vol. 43(1), pages 123-143, January.
    17. Li, Wenbo & Long, Ruyin & Chen, Hong & Geng, Jichao, 2017. "A review of factors influencing consumer intentions to adopt battery electric vehicles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 318-328.
    18. Shanyong Wang & Jin Fan & Dingtao Zhao & Shu Yang & Yuanguang Fu, 2016. "Predicting consumers’ intention to adopt hybrid electric vehicles: using an extended version of the theory of planned behavior model," Transportation, Springer, vol. 43(1), pages 123-143, January.
    19. Helveston, John Paul & Liu, Yimin & Feit, Elea McDonnell & Fuchs, Erica & Klampfl, Erica & Michalek, Jeremy J., 2015. "Will subsidies drive electric vehicle adoption? Measuring consumer preferences in the U.S. and China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 73(C), pages 96-112.
    20. Li, Wenbo & Long, Ruyin & Chen, Hong & Yang, Tong & Geng, Jichao & Yang, Muyi, 2018. "Effects of personal carbon trading on the decision to adopt battery electric vehicles: Analysis based on a choice experiment in Jiangsu, China," Applied Energy, Elsevier, vol. 209(C), pages 478-488.
    21. Wang, Ning & Pan, Huizhong & Zheng, Wenhui, 2017. "Assessment of the incentives on electric vehicle promotion in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 177-189.
    22. Xingping Zhang & Rao Rao & Jian Xie & Yanni Liang, 2014. "The Current Dilemma and Future Path of China’s Electric Vehicles," Sustainability, MDPI, vol. 6(3), pages 1-27, March.
    23. 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.
    24. Massiani, Jérôme, 2015. "Cost-Benefit Analysis of policies for the development of electric vehicles in Germany: Methods and results," Transport Policy, Elsevier, vol. 38(C), pages 19-26.
    25. Zhang, Yue-Jun & Liu, Zhao & Qin, Chang-Xiong & Tan, Tai-De, 2017. "The direct and indirect CO2 rebound effect for private cars in China," Energy Policy, Elsevier, vol. 100(C), pages 149-161.
    26. Wenbo Li & Ruyin Long & Hong Chen & Jichao Geng, 2017. "Household factors and adopting intention of battery electric vehicles: a multi-group structural equation model analysis among consumers in Jiangsu Province, 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. 87(2), pages 945-960, June.
    27. Wenbo Li & Muyi Yang & Suwin Sandu, 2018. "Electric vehicles in China: A review of current policies," Energy & Environment, , vol. 29(8), pages 1512-1524, December.
    28. Koetse, Mark J. & Hoen, Anco, 2014. "Preferences for alternative fuel vehicles of company car drivers," Resource and Energy Economics, Elsevier, vol. 37(C), pages 279-301.
    29. Zhang, Yue-Jun & Peng, Hua-Rong, 2017. "Exploring the direct rebound effect of residential electricity consumption: An empirical study in China," Applied Energy, Elsevier, vol. 196(C), pages 132-141.
    30. Schuitema, Geertje & Anable, Jillian & Skippon, Stephen & Kinnear, Neale, 2013. "The role of instrumental, hedonic and symbolic attributes in the intention to adopt electric vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 48(C), pages 39-49.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiyu Zhang & Minyen Chang, 2023. "Applying the Extended Technology Acceptance Model to Explore Taiwan’s Generation Z’s Behavioral Intentions toward Using Electric Motorcycles," Sustainability, MDPI, vol. 15(4), pages 1-15, February.
    2. Chenlei Xue & Huaguo Zhou & Qunqi Wu & Xueying Wu & Xingbo Xu, 2021. "Impact of Incentive Policies and Other Socio-Economic Factors on Electric Vehicle Market Share: A Panel Data Analysis from the 20 Countries," Sustainability, MDPI, vol. 13(5), pages 1-12, March.
    3. Sandu, Suwin & Yang, Muyi & Phoumin, Han & Aghdam, Reza Fathollahzadeh & Shi, Xunpeng, 2021. "Assessment of accessible, clean and efficient energy systems: A statistical analysis of composite energy performance indices," Applied Energy, Elsevier, vol. 304(C).
    4. Wang, Jiaxing & Matsumoto, Shigeru, 2022. "Can subsidy programs lead consumers to select “greener” products?: Evidence from the Eco-car program in Japan," Research in Transportation Economics, Elsevier, vol. 91(C).
    5. Sheldon, Tamara L. & Dua, Rubal, 2020. "Effectiveness of China's plug-in electric vehicle subsidy," Energy Economics, Elsevier, vol. 88(C).
    6. Alali, Layla & Niesten, Eva & Gagliardi, Dimitri, 2022. "The impact of UK financial incentives on the adoption of electric fleets: The moderation effect of GDP change," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 200-220.
    7. Wenbo Li & Ruyin Long & Linling Zhang & Zhengxia He & Feiyu Chen & Hong Chen, 2020. "Greenhouse Gas Emission Transfer of Inter-Provincial Electricity Trade in China," IJERPH, MDPI, vol. 17(22), pages 1-14, November.
    8. Austmann, Leonhard M., 2021. "Drivers of the electric vehicle market: A systematic literature review of empirical studies," Finance Research Letters, Elsevier, vol. 41(C).
    9. 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.
    10. Kondev, Bozhil & Dixon, James & Zhou, Zhaoqi & Sabyrbekov, Rahat & Sultanaliev, Kanat & Hirmer, Stephanie A., 2023. "Putting the foot down: Accelerating EV uptake in Kyrgyzstan," Transport Policy, Elsevier, vol. 131(C), pages 87-96.
    11. Mailinda Eka Yuniza & I Wayan Bhayu Eka Pratama & Rahmah Candrika Ramadhaniati, 2021. "Indonesia s Incentive Policies on Electric Vehicles: The Questionable Effort from the Government," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 434-440.
    12. Bolong Yun & Daniel (Jian) Sun & Yingjie Zhang & Siwen Deng & Jing Xiong, 2019. "A Charging Location Choice Model for Plug-In Hybrid Electric Vehicle Users," Sustainability, MDPI, vol. 11(20), pages 1-23, October.
    13. Wenbo Li & Ruyin Long & Hong Chen & Baoqi Dou & Feiyu Chen & Xiao Zheng & Zhengxia He, 2020. "Public Preference for Electric Vehicle Incentive Policies in China: A Conjoint Analysis," IJERPH, MDPI, vol. 17(1), pages 1-16, January.
    14. Timothy Sands, 2020. "Electric Vehicle Sales Catastrophe Averted (?)," Modern Applied Science, Canadian Center of Science and Education, vol. 14(3), pages 1-1, March.
    15. Jacobus Nel & Roula Inglesi-Lotz, 2022. "Electric Vehicles Market and Policy Conditions: Identifying South African Policy ``Potholes"," Working Papers 202257, University of Pretoria, Department of Economics.
    16. Martin Kalthaus & Jiatang Sun, 2021. "Determinants of Electric Vehicle Diffusion in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(3), pages 473-510, November.
    17. Meilinda Fitriani Nur Maghfiroh & Andante Hadi Pandyaswargo & Hiroshi Onoda, 2021. "Current Readiness Status of Electric Vehicles in Indonesia: Multistakeholder Perceptions," Sustainability, MDPI, vol. 13(23), pages 1-25, November.
    18. Anders F. Jensen & Thomas K. Rasmussen & Carlo G. Prato, 2020. "A Route Choice Model for Capturing Driver Preferences When Driving Electric and Conventional Vehicles," Sustainability, MDPI, vol. 12(3), pages 1-18, February.
    19. Shijin Wang & Guihong Hua & Huiying Zhou, 2020. "What Are the Key Factors Affecting Air Pollution? Research on Jiangsu, China from the Perspective of Spatial Differentiation," Sustainability, MDPI, vol. 12(6), pages 1-17, March.

    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. Wenbo Li & Ruyin Long & Hong Chen & Baoqi Dou & Feiyu Chen & Xiao Zheng & Zhengxia He, 2020. "Public Preference for Electric Vehicle Incentive Policies in China: A Conjoint Analysis," IJERPH, MDPI, vol. 17(1), pages 1-16, January.
    2. Li, Wenbo & Long, Ruyin & Chen, Hong, 2016. "Consumers’ evaluation of national new energy vehicle policy in China: An analysis based on a four paradigm model," Energy Policy, Elsevier, vol. 99(C), pages 33-41.
    3. Li, Wenbo & Long, Ruyin & Chen, Hong & Yang, Tong & Geng, Jichao & Yang, Muyi, 2018. "Effects of personal carbon trading on the decision to adopt battery electric vehicles: Analysis based on a choice experiment in Jiangsu, China," Applied Energy, Elsevier, vol. 209(C), pages 478-488.
    4. Ziwen Ling & Christopher R. Cherry & Yi Wen, 2021. "Determining the Factors That Influence Electric Vehicle Adoption: A Stated Preference Survey Study in Beijing, China," Sustainability, MDPI, vol. 13(21), pages 1-22, October.
    5. Wang, Shanyong & Li, Jun & Zhao, Dingtao, 2017. "The impact of policy measures on consumer intention to adopt electric vehicles: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 14-26.
    6. Ye, Fei & Kang, Wanlin & Li, Lixu & Wang, Zhiqiang, 2021. "Why do consumers choose to buy electric vehicles? A paired data analysis of purchase intention configurations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 147(C), pages 14-27.
    7. Wang, Shanyong & Wang, Jing & Li, Jun & Wang, Jinpeng & Liang, Liang, 2018. "Policy implications for promoting the adoption of electric vehicles: Do consumer’s knowledge, perceived risk and financial incentive policy matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 58-69.
    8. Li, Wenbo & Long, Ruyin & Chen, Hong & Geng, Jichao, 2017. "A review of factors influencing consumer intentions to adopt battery electric vehicles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 318-328.
    9. Jingnan Zhang & Shichun Xu & Zhengxia He & Chengze Li & Xiaona Meng, 2022. "Factors Influencing Adoption Intention for Electric Vehicles under a Subsidy Deduction: From Different City-Level Perspectives," Sustainability, MDPI, vol. 14(10), pages 1-24, May.
    10. Wu, Zezhou & He, Qiufeng & Li, Jiarun & Bi, Guoqiang & Antwi-Afari, Maxwell Fordjour, 2023. "Public attitudes and sentiments towards new energy vehicles in China: A text mining approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 178(C).
    11. Yang, Shu & Cheng, Peng & Li, Jun & Wang, Shanyong, 2019. "Which group should policies target? Effects of incentive policies and product cognitions for electric vehicle adoption among Chinese consumers," Energy Policy, Elsevier, vol. 135(C).
    12. Jaiswal, Deepak & Kaushal, Vikrant & Kant, Rishi & Kumar Singh, Pankaj, 2021. "Consumer adoption intention for electric vehicles: Insights and evidence from Indian sustainable transportation," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    13. Qiu, Y.Q. & Zhou, P. & Sun, H.C., 2019. "Assessing the effectiveness of city-level electric vehicle policies in China," Energy Policy, Elsevier, vol. 130(C), pages 22-31.
    14. Liu, Yajie & Dong, Feng & Li, Guoqing & Huang, Jianheng & Yang, Shanshan & Wang, Yulong, 2023. "Public willingness to support the policy of banning gasoline vehicles sales and its internal mechanism," Energy, Elsevier, vol. 271(C).
    15. Wenbo Li & Ruyin Long & Hong Chen & Jichao Geng, 2017. "Household factors and adopting intention of battery electric vehicles: a multi-group structural equation model analysis among consumers in Jiangsu Province, 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. 87(2), pages 945-960, June.
    16. Tianpei Tang & Xiwei Wang & Jianbing Wu & Meining Yuan & Yuntao Guo & Xunqian Xu, 2022. "Determinants and the Moderating Effects of Individual Characteristics on Autonomous Vehicle Adoption in China," IJERPH, MDPI, vol. 20(1), pages 1-17, December.
    17. Moon-Koo Kim & Jong-Hyun Park & Kyungsoo Kim & Byoungkyu Park, 2020. "Identifying factors influencing the slow market diffusion of electric vehicles in Korea," Transportation, Springer, vol. 47(2), pages 663-688, April.
    18. Wu, Yang Andrew & Ng, Artie W. & Yu, Zichao & Huang, Jie & Meng, Ke & Dong, Z.Y., 2021. "A review of evolutionary policy incentives for sustainable development of electric vehicles in China: Strategic implications," Energy Policy, Elsevier, vol. 148(PB).
    19. Kumar Shalender & Naman Sharma, 2021. "Using extended theory of planned behaviour (TPB) to predict adoption intention of electric vehicles in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 665-681, January.
    20. Higueras-Castillo, Elena & Kalinic, Zoran & Marinkovic, Veljko & Liébana-Cabanillas, Francisco J., 2020. "A mixed analysis of perceptions of electric and hybrid vehicles," Energy Policy, Elsevier, vol. 136(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:gam:jsusta:v:11:y:2019:i:12:p:3323-:d:240257. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.