IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i20p8794-d1496542.html
   My bibliography  Save this article

Empirical Research on the Impact of Technological Innovation on New Energy Vehicle Sales

Author

Listed:
  • Wanying Xie

    (School of Management Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Wei Zhao

    (School of Management Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Binbin Ding

    (School of Management Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

Abstract

In the context of global carbon peak and carbon neutrality goals, researching the driving forces and influencing factors behind the growth in sales of new energy vehicles (NEVs) is particularly urgent and crucial. Although the academic community has extensively explored various factors affecting NEV sales, technological innovation, as the core engine driving industry progress, is yet to receive sufficient and in-depth exploration regarding its potential profound impact on sales. Therefore, this study thoroughly analyzes the mechanism by which technological innovation influences sales, supplementing the existing literature, exploring sustainable industry development, and guiding the optimization of business strategies and precise government policies. This research employs the quality of NEV technology patents as a proxy variable for technological innovation, and conducts an empirical analysis using China’s NEV sales data from 2015 to 2022. The results of the study show the following: (1) the quality of technological innovation significantly contributes to the growth of new energy vehicle sales. This conclusion still holds when the administrative protection of intellectual property rights and the government’s public innovation environment indicators are used as instrumental variables of technological innovation quality. (2) Technological innovations in different links of the new energy vehicle industry chain have a positive impact on sales, especially those in the midstream battery, motor, and downstream charging services. This shows that in the critical period of new energy vehicle development, not only is the breakthrough of key technologies crucial, but also, non-critical technologies can promote sales growth by improving user experience and product performance. (3) Compared with plug-in hybrid electric vehicles (PHEVs), the overall technological innovation of new energy vehicles (NEVs) has a more significant effect on the sales of battery electric vehicles (BEVs). (4) In addition, the study finds that there is no significant difference between high-quality and low-quality technological innovations on the promotion of new energy vehicle sales, which indicates that the market values the overall effect of technological innovations more than the mere level of quality. The study of the impact of technological innovation on sales in different branches of the new energy industry chain can help to clarify the direction of technological innovation, optimize resource allocation, promote the synergistic development of the industry chain, enhance market competitiveness, and provide a scientific basis for policy formulation.

Suggested Citation

  • Wanying Xie & Wei Zhao & Binbin Ding, 2024. "Empirical Research on the Impact of Technological Innovation on New Energy Vehicle Sales," Sustainability, MDPI, vol. 16(20), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:8794-:d:1496542
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/20/8794/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/20/8794/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sun, Lishan & Huang, Yuchen & Liu, Shuli & Chen, Yanyan & Yao, Liya & Kashyap, Anil, 2017. "A completive survey study on the feasibility and adaptation of EVs in Beijing, China," Applied Energy, Elsevier, vol. 187(C), pages 128-139.
    2. Leonid Kogan & Dimitris Papanikolaou & Amit Seru & Noah Stoffman, 2017. "Technological Innovation, Resource Allocation, and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 665-712.
    3. Wang, Xue & Fan, Li-Wei & Zhang, Hongyan, 2023. "Policies for enhancing patent quality: Evidence from renewable energy technology in China," Energy Policy, Elsevier, vol. 180(C).
    4. Lin, Boqiang & Shi, Lei, 2022. "Do environmental quality and policy changes affect the evolution of consumers’ intentions to buy new energy vehicles," Applied Energy, Elsevier, vol. 310(C).
    5. Chih-Yi, Su & Bou-Wen, Lin, 2021. "Attack and defense in patent-based competition: A new paradigm of strategic decision-making in the era of the fourth industrial revolution," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    6. 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.
    7. Wang, Yuanyuan & Chi, Yuanying & Xu, Jin-Hua & Yuan, Yongke, 2022. "Consumers’ attitudes and their effects on electric vehicle sales and charging infrastructure construction: An empirical study in China," Energy Policy, Elsevier, vol. 165(C).
    8. Hyundo Choi, 2018. "Technology-push and demand-pull factors in emerging sectors: evidence from the electric vehicle market," Industry and Innovation, Taylor & Francis Journals, vol. 25(7), pages 655-674, August.
    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. Sumin Yu & Xiaoting Zhang & Zhijiao Du & Yanyan Chen, 2023. "A New Multi-Attribute Decision Making Method for Overvalued Star Ratings Adjustment and Its Application in New Energy Vehicle Selection," Mathematics, MDPI, vol. 11(9), pages 1-32, April.
    2. Chen, Yu & Lin, Boqiang, 2022. "Are consumers in China’s major cities happy with charging infrastructure for electric vehicles?," Applied Energy, Elsevier, vol. 327(C).
    3. Chaoxi Liang & Qingtao Yang & Hongyuan Sun & Xiaoming Ma, 2024. "Unveiling consumer satisfaction and its driving factors of EVs in China using an explainable artificial intelligence approach," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    4. 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).
    5. Lin, Boqiang & Yang, Mengqi, 2024. "Changes in consumer satisfaction with electric vehicle charging infrastructure: Evidence from two cross-sectional surveys in 2019 and 2023," Energy Policy, Elsevier, vol. 185(C).
    6. Jia Yao & Siqin Xiong & Xiaoming Ma, 2020. "Comparative Analysis of National Policies for Electric Vehicle Uptake Using Econometric Models," Energies, MDPI, vol. 13(14), pages 1-18, July.
    7. Lin, Boqiang & Shi, Lei, 2024. "Identify the policy weaknesses in China's electric vehicle development," Transport Policy, Elsevier, vol. 157(C), pages 167-178.
    8. Wen, Wen & Yang, Shuo & Walker, Richard M. & Zhou, Peng, 2025. "Effectiveness of collaborative policy tools for promoting electric vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 192(C).
    9. Feng, Xiao & Li, Yuyu & Huang, Bo, 2023. "Research on manufacturer's investment strategy and green credit policy for new energy vehicles based on consumers' preferences and technology adoption," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    10. Ilona Babenko & Benjamin Bennett & John M Bizjak & Jeffrey L Coles & Jason J Sandvik, 2023. "Clawback Provisions and Firm Risk," The Review of Corporate Finance Studies, Society for Financial Studies, vol. 12(2), pages 191-239.
    11. Kimura, Yosuke, 2024. "Market-based patent value of green transformation technologies," Finance Research Letters, Elsevier, vol. 68(C).
    12. Pauly, Stefan & Stipanicic, Fernando, 2021. "The creation and diffusion of knowledge: Evidence from the Jet Age," CEPREMAP Working Papers (Docweb) 2112, CEPREMAP.
    13. Simon Kinyua Njeru & Dr. Robert Mang’ana & Dr. Enos Anene, 2025. "Strategy Implementation and Performance of Manufacturing Pharmaceutical Companies in Kenya," Journal of Business and Strategic Management, CARI Journals Limited, vol. 10(5), pages 36-62.
    14. Alex Bell & Raj Chetty & Xavier Jaravel & Neviana Petkova & John Van Reenen, 2019. "Who Becomes an Inventor in America? The Importance of Exposure to Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 647-713.
    15. Kim, Jinhee & Lee, Keun, 2022. "Local–global interface as a key factor in the catching up of regional innovation systems: Fast versus slow catching up among Taipei, Shenzhen, and Penang in Asia," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    16. Danilo Cascaldi-Garcia & Marija Vukotic, 2022. "Patent-Based News Shocks," The Review of Economics and Statistics, MIT Press, vol. 104(1), pages 51-66, March.
    17. Cozzi, Guido & Pataracchia, Beatrice & Pfeiffer, Philipp & Marco, Ratto, 2017. "How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy," JRC Working Papers in Economics and Finance 2017-01, Joint Research Centre, European Commission.
    18. Hasan, Iftekhar & Li, Xiang & Takalo, Tuomas, 2023. "Technological innovation and the bank lending channel of monetary policy transmission," IWH Discussion Papers 14/2021, Halle Institute for Economic Research (IWH), revised 2023.
    19. Mammadaliyev, Farid & Gilsing, Victor & Knoben, J., 2024. "How do firms adapt their portfolios of external collaborations to changing internal organizational attributes? The moderating role of firm age," Other publications TiSEM 56c854b7-ed86-4830-843e-c, Tilburg University, School of Economics and Management.
    20. Naji Mohammad Alshammasi & Adel Abdulkarim Almomen, 2022. "Innovation Output and Idiosyncratic Volatility: US Evidence," JRFM, MDPI, vol. 16(1), pages 1-17, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:16:y:2024:i:20:p:8794-:d:1496542. 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.