IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i14p11067-d1194599.html
   My bibliography  Save this article

Promoting “NEVs Pilot Policy” as an Effective Way for Reducing Urban Transport Carbon Emissions: Empirical Evidence from China

Author

Listed:
  • Jinru Wang

    (School of Civil Engineering and Transportation, Northeast Forestry University, Harbin 150040, China)

  • Zhenwu Shi

    (School of Civil Engineering and Transportation, Northeast Forestry University, Harbin 150040, China)

  • Jie Liu

    (School of Civil Engineering and Transportation, Northeast Forestry University, Harbin 150040, China)

  • Hongrui Zhang

    (School of Civil Engineering and Transportation, Northeast Forestry University, Harbin 150040, China
    Heilongjiang Provincial Transportation Investment Highway Construction Investment Co., Ltd., Harbin 150040, China)

Abstract

To reduce urban transport carbon emissions, the Chinese government issued the NEVs Pilot Policy in 2009 to promote NEVs in both the public and private transport sectors. Using panel data from 53 prefecture-level cities in China spanning from 2006 to 2020, this study evaluates the effectiveness of the NEVs Pilot Policy on urban transport carbon emissions based on the difference-in-differences (DID) model. Additionally, it analyzes the influencing mechanism of this policy, as well as the varying policy effect among heterogeneous cities. The empirical results show that the NEVs Pilot Policy has effectively reduced urban transport emissions by an annual average of 29.3%. Annual per capita emissions were lowered by an average of 0.31 t, and the annual emission intensity was also reduced by an average of 2.04 t per unit GDP. We also found that its dynamic effectiveness has lagged but cumulatively increased over time. Furthermore, the mechanism analysis indicates that the policy effect is mainly achieved by adjusting the vehicle structure (VS) and lowering the energy intensity (EI). The heterogeneity analysis also reveals that the effectiveness of NEVs Pilot Policy varies significantly among different cities. The economic level, the political status, and the urban transport development are found to be the key factors that determine its effectiveness. Based on these findings, this study proposes some targeted policy suggestions to promote NEVs in different cities.

Suggested Citation

  • Jinru Wang & Zhenwu Shi & Jie Liu & Hongrui Zhang, 2023. "Promoting “NEVs Pilot Policy” as an Effective Way for Reducing Urban Transport Carbon Emissions: Empirical Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-24, July.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:14:p:11067-:d:1194599
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/14/11067/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/14/11067/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lin, Boqiang & Du, Zhili, 2017. "Can urban rail transit curb automobile energy consumption?," Energy Policy, Elsevier, vol. 105(C), pages 120-127.
    2. Egbue, Ona & Long, Suzanna, 2012. "Barriers to widespread adoption of electric vehicles: An analysis of consumer attitudes and perceptions," Energy Policy, Elsevier, vol. 48(C), pages 717-729.
    3. 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.
    4. Azarafshar, Roshanak & Vermeulen, Wessel N., 2020. "Electric vehicle incentive policies in Canadian provinces," Energy Economics, Elsevier, vol. 91(C).
    5. Zhang, Junjie & Jia, Rongwen & Yang, Hangjun & Dong, Kangyin, 2022. "Does electric vehicle promotion in the public sector contribute to urban transport carbon emissions reduction?," Transport Policy, Elsevier, vol. 125(C), pages 151-163.
    6. Gu, Huaying & Liu, Zhixue & Qing, Qiankai, 2017. "Optimal electric vehicle production strategy under subsidy and battery recycling," Energy Policy, Elsevier, vol. 109(C), pages 579-589.
    7. 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.
    8. Sant’Anna, Pedro H.C. & Zhao, Jun, 2020. "Doubly robust difference-in-differences estimators," Journal of Econometrics, Elsevier, vol. 219(1), pages 101-122.
    9. 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).
    10. Wee, Sherilyn & Coffman, Makena & La Croix, Sumner, 2018. "Do electric vehicle incentives matter? Evidence from the 50 U.S. states," Research Policy, Elsevier, vol. 47(9), pages 1601-1610.
    11. Zhao, Dan & Ji, Shou-feng & Wang, He-ping & Jiang, Li-wen, 2021. "How do government subsidies promote new energy vehicle diffusion in the complex network context? A three-stage evolutionary game model," Energy, Elsevier, vol. 230(C).
    12. Liu, Bingchun & Song, Chengyuan & Wang, Qingshan & Zhang, Xinming & Chen, Jiali, 2022. "Research on regional differences of China's new energy vehicles promotion policies: A perspective of sales volume forecasting," Energy, Elsevier, vol. 248(C).
    13. Ahman, Max, 2006. "Government policy and the development of electric vehicles in Japan," Energy Policy, Elsevier, vol. 34(4), pages 433-443, March.
    14. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-660, November.
    15. Michael K. Lim & Ho-Yin Mak & Ying Rong, 2015. "Toward Mass Adoption of Electric Vehicles: Impact of the Range and Resale Anxieties," Manufacturing & Service Operations Management, INFORMS, vol. 17(1), pages 101-119, February.
    16. Gao, Yuning & Li, Meng & Xue, Jinjun & Liu, Yu, 2020. "Evaluation of effectiveness of China's carbon emissions trading scheme in carbon mitigation," Energy Economics, Elsevier, vol. 90(C).
    17. Wang, Shaojian & Liu, Xiaoping & Zhou, Chunshan & Hu, Jincan & Ou, Jinpei, 2017. "Examining the impacts of socioeconomic factors, urban form, and transportation networks on CO2 emissions in China’s megacities," Applied Energy, Elsevier, vol. 185(P1), pages 189-200.
    18. Egnér, Filippa & Trosvik, Lina, 2018. "Electric vehicle adoption in Sweden and the impact of local policy instruments," Energy Policy, Elsevier, vol. 121(C), pages 584-596.
    19. Feng, Tong & Lin, Zhongguo & Du, Huibin & Qiu, Yueming & Zuo, Jian, 2021. "Does low-carbon pilot city program reduce carbon intensity? Evidence from Chinese cities," Research in International Business and Finance, Elsevier, vol. 58(C).
    20. Silvia, Chris & Krause, Rachel M., 2016. "Assessing the impact of policy interventions on the adoption of plug-in electric vehicles: An agent-based model," Energy Policy, Elsevier, vol. 96(C), pages 105-118.
    21. Long, Xingle & Sun, Mei & Cheng, Faxin & Zhang, Jijian, 2017. "Convergence analysis of eco-efficiency of China’s cement manufacturers through unit root test of panel data," Energy, Elsevier, vol. 134(C), pages 709-717.
    22. Bu, Chujie & Cui, Xueqin & Li, Ruiyao & Li, Jin & Zhang, Yaxin & Wang, Can & Cai, Wenjia, 2021. "Achieving net-zero emissions in China’s passenger transport sector through regionally tailored mitigation strategies," Applied Energy, Elsevier, vol. 284(C).
    23. 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.
    24. Meinrenken, Christoph J. & Lackner, Klaus S., 2015. "Fleet view of electrified transportation reveals smaller potential to reduce GHG emissions," Applied Energy, Elsevier, vol. 138(C), pages 393-403.
    25. Yao, Xusheng & Ma, Shoufeng & Bai, Yin & Jia, Ning, 2022. "When are new energy vehicle incentives effective? Empirical evidence from 88 pilot cities in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 207-224.
    26. Kosuke Imai & Marc Ratkovic, 2014. "Covariate balancing propensity score," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 76(1), pages 243-263, January.
    27. Tan, Ruipeng & Tang, Di & Lin, Boqiang, 2018. "Policy impact of new energy vehicles promotion on air quality in Chinese cities," Energy Policy, Elsevier, vol. 118(C), pages 33-40.
    28. Dong, Feng & Liu, Yajie, 2020. "Policy evolution and effect evaluation of new-energy vehicle industry in China," Resources Policy, Elsevier, vol. 67(C).
    29. Liu, Jiaguo & Li, Sujuan & Ji, Qiang, 2021. "Regional differences and driving factors analysis of carbon emission intensity from transport sector in China," Energy, Elsevier, vol. 224(C).
    30. Chi, Yuan-Ying & Wang, Yuan-Yuan & Xu, Jin-Hua, 2021. "Estimating the impact of the license plate quota policy for ICEVs on new energy vehicle adoption by using synthetic control method," Energy Policy, Elsevier, vol. 149(C).
    31. Lévay, Petra Zsuzsa & Drossinos, Yannis & Thiel, Christian, 2017. "The effect of fiscal incentives on market penetration of electric vehicles: A pairwise comparison of total cost of ownership," Energy Policy, Elsevier, vol. 105(C), pages 524-533.
    32. Guo, Bin & Geng, Yong & Franke, Bernd & Hao, Han & Liu, Yaxuan & Chiu, Anthony, 2014. "Uncovering China’s transport CO2 emission patterns at the regional level," Energy Policy, Elsevier, vol. 74(C), pages 134-146.
    33. Shafiei, Ehsan & Davidsdottir, Brynhildur & Fazeli, Reza & Leaver, Jonathan & Stefansson, Hlynur & Asgeirsson, Eyjolfur Ingi, 2018. "Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs," Energy Policy, Elsevier, vol. 114(C), pages 431-443.
    34. Poullikkas, Andreas, 2015. "Sustainable options for electric vehicle technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1277-1287.
    35. Jenn, Alan & Springel, Katalin & Gopal, Anand R., 2018. "Effectiveness of electric vehicle incentives in the United States," Energy Policy, Elsevier, vol. 119(C), pages 349-356.
    36. Zhang, Xiang, 2014. "Reference-dependent electric vehicle production strategy considering subsidies and consumer trade-offs," Energy Policy, Elsevier, vol. 67(C), pages 422-430.
    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. Yao, Xusheng & Ma, Shoufeng & Bai, Yin & Jia, Ning, 2022. "When are new energy vehicle incentives effective? Empirical evidence from 88 pilot cities in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 207-224.
    2. Zhang, Junjie & Jia, Rongwen & Yang, Hangjun & Dong, Kangyin, 2022. "Does electric vehicle promotion in the public sector contribute to urban transport carbon emissions reduction?," Transport Policy, Elsevier, vol. 125(C), pages 151-163.
    3. 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.
    4. Peng, Yuan & Bai, Xuemei, 2023. "What EV users say about policy efficacy: Evidence from Shanghai," Transport Policy, Elsevier, vol. 132(C), pages 16-26.
    5. Hsiao, Cody Yu-Ling & Yang, Rui & Zheng, Xin & Chiu, Yi-Bin, 2023. "Evaluations of policy contagion for new energy vehicle industry in China," Energy Policy, Elsevier, vol. 173(C).
    6. Liu, Chang & Liu, Yuan & Zhang, Dayong & Xie, Chunping, 2022. "The capital market responses to new energy vehicle (NEV) subsidies: An event study on China," Energy Economics, Elsevier, vol. 105(C).
    7. 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.
    8. Lijing Zhu & Jingzhou Wang & Arash Farnoosh & Xunzhang Pan, 2021. "A Game-Theory Analysis of Electric Vehicle Adoption in Beijing under License Plate Control Policy," Working Papers hal-03500766, HAL.
    9. 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.
    10. Qin, Shufeng & Xiong, Yongqing, 2022. "Innovation strategies of Chinese new energy vehicle enterprises under the influence of non-financial policies: Effects, mechanisms and implications," Energy Policy, Elsevier, vol. 164(C).
    11. 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.
    12. Zhu, Lijing & Wang, Jingzhou & Farnoosh, Arash & Pan, Xunzhang, 2022. "A game-theory analysis of electric vehicle adoption in Beijing under license plate control policy," Energy, Elsevier, vol. 244(PA).
    13. Wang, Yitong & Fan, Ruguo & Du, Kang & Bao, Xuguang, 2023. "Exploring incentives to promote electric vehicles diffusion under subsidy abolition: An evolutionary analysis on multiplex consumer social networks," Energy, Elsevier, vol. 276(C).
    14. Hardman, Scott, 2019. "Understanding the impact of reoccurring and non-financial incentives on plug-in electric vehicle adoption – A review," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 1-14.
    15. Münzel, Christiane & Plötz, Patrick & Sprei, Frances & Gnann, Till, 2019. "How large is the effect of financial incentives on electric vehicle sales? – A global review and European analysis," Energy Economics, Elsevier, vol. 84(C).
    16. Chanwit Kongklaew & Khamphe Phoungthong & Chanwit Prabpayak & Md. Shahariar Chowdhury & Imran Khan & Nuttaya Yuangyai & Chumpol Yuangyai & Kuaanan Techato, 2021. "Barriers to Electric Vehicle Adoption in Thailand," Sustainability, MDPI, vol. 13(22), pages 1-13, November.
    17. Zhuge, Chengxiang & Wei, Binru & Shao, Chunfu & Shan, Yuli & Dong, Chunjiao, 2020. "The role of the license plate lottery policy in the adoption of Electric Vehicles: A case study of Beijing," Energy Policy, Elsevier, vol. 139(C).
    18. Wang, Xiao-Wu & Cao, Yu-Mei & Zhang, Ning, 2021. "The influences of incentive policy perceptions and consumer social attributes on battery electric vehicle purchase intentions," Energy Policy, Elsevier, vol. 151(C).
    19. Wang, Xiaoli & Huang, Lucheng & Daim, Tugrul & Li, Xin & Li, Zhiqiang, 2021. "Evaluation of China's new energy vehicle policy texts with quantitative and qualitative analysis," Technology in Society, Elsevier, vol. 67(C).
    20. Susheng Wang & Gang Chen & Dawei Huang, 2021. "Can the New Energy Vehicle Pilot Policy Achieve Green Innovation and Emission Reduction?—A Difference-in-Differences Analysis on the Evaluation of China’s New Energy Fiscal Subsidy Policy," Sustainability, MDPI, vol. 13(15), pages 1-21, August.

    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:15:y:2023:i:14:p:11067-:d:1194599. 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.