IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i5p1907-d1346085.html
   My bibliography  Save this article

Competition and Coordination: Regional Dynamics in the Rise of China’s New Energy Vehicle Industry

Author

Listed:
  • Jerry Patchell

    (Division of Social Science, Hong Kong University of Science and Technology, Hong Kong SAR, China
    Division of Environment and Sustainability, Hong Kong University of Science and Technology, Hong Kong SAR, China
    Division of Public Policy, Hong Kong University of Science and Technology, Hong Kong SAR, China)

  • Kellee S. Tsai

    (Division of Social Science, Hong Kong University of Science and Technology, Hong Kong SAR, China)

  • Hanyu Wang

    (Department of Humanities and Law, Tianjin Open University, Tianjin 300270, China)

  • Bon Cheung

    (Division of Environment and Sustainability, Hong Kong University of Science and Technology, Hong Kong SAR, China)

Abstract

Studies on China’s success in the electric vehicle industry overlook the role of regional clustering and regional electric vehicle policies in supporting sustainable production and consumption. This paper adopts a mixed-method policy inventory and analysis to examine the rise of the new energy vehicle (NEV) industry in China’s Greater Bay Area. It also systematically analyses the policies implemented by the central government, province, and cities in building a sustainable regional industry. A core dilemma is that cities are competing with one another for NEV development, yet regional industrial development requires coordination and cooperation. Examining the four policy areas of production, consumption, infrastructure support, and pollution suppression reveals that the competition among cities can be a driving force for the adoption of sustainable technology when supported by regional policy coordination.

Suggested Citation

  • Jerry Patchell & Kellee S. Tsai & Hanyu Wang & Bon Cheung, 2024. "Competition and Coordination: Regional Dynamics in the Rise of China’s New Energy Vehicle Industry," Sustainability, MDPI, vol. 16(5), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:1907-:d:1346085
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/5/1907/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/5/1907/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ron A. Boschma & Rik Wenting, 2007. "The spatial evolution of the British automobile industry: Does location matter?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(2), pages 213-238, April.
    2. Jie Xiong & Shuyan Zhao & Yan Meng & Lu Xu & Seong-Young Kim, 2022. "How latecomers catch up to build an energy-saving industry : The case of the Chinese electric vehicle industry 1995–2018," Grenoble Ecole de Management (Post-Print) hal-03469528, HAL.
    3. 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.
    4. 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).
    5. 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).
    6. Xiong, Jie & Zhao, Shuyan & Meng, Yan & Xu, Lu & Kim, Seong-Young, 2022. "How latecomers catch up to build an energy-saving industry: The case of the Chinese electric vehicle industry 1995–2018," Energy Policy, Elsevier, vol. 161(C).
    7. Kuchiki, Akifumi, 2007. "The Flowchart Model of Cluster Policy: The Automobile Industry Cluster in China," IDE Discussion Papers 100, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Jiang, Zhangsheng & Xu, Chenghao, 2023. "Policy incentives, government subsidies, and technological innovation in new energy vehicle enterprises: Evidence from China," Energy Policy, Elsevier, vol. 177(C).
    9. 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).
    10. Fan, Jing-Li & Wang, Jia-Xing & Zhang, Xian, 2020. "An innovative subsidy model for promoting the sharing of Electric Vehicles in China: A pricing decisions analysis," Energy, Elsevier, vol. 201(C).
    11. Zhang, Zhenbo & Wang, Jingwen, 2022. "Undermining or remodeling: Effects of leadership rotation on the effectiveness of authoritarian environmentalism in China," Energy Policy, Elsevier, vol. 161(C).
    12. Liu, Lanjian & Zhang, Tian & Avrin, Anne-Perrine & Wang, Xianwen, 2020. "Is China's industrial policy effective? An empirical study of the new energy vehicles industry," Technology in Society, Elsevier, vol. 63(C).
    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. Yu, Liukai & Zheng, Junjun & Ma, Gang & Jiao, Yangyang, 2023. "Analyzing the evolution trend of energy conservation and carbon reduction in transportation with promoting electrification in China," Energy, Elsevier, vol. 263(PD).
    2. Wang, Xuanwen & Zhu, Lei & Zheng, Haitao, 2025. "The relationship between technical innovation and market value: Evidence from the China's new energy vehicles industry," Energy Policy, Elsevier, vol. 202(C).
    3. Li, Jingjing & Nian, Victor & Jiao, Jianling, 2022. "Diffusion and benefits evaluation of electric vehicles under policy interventions based on a multiagent system dynamics model," Applied Energy, Elsevier, vol. 309(C).
    4. Ying Hao & Mingshun Guo & Yijing Guo, 2022. "Predicting technological innovation in new energy vehicles based on an improved radial basis function neural network for policy synergy," PLOS ONE, Public Library of Science, vol. 17(8), pages 1-16, August.
    5. Qin, Shufeng & Xiong, Yongqing, 2024. "Differences in the innovation effectiveness of China's new energy vehicle industry policies: A comparison of subsidized and non-subsidized policies," Energy, Elsevier, vol. 304(C).
    6. Yuniaristanto, & Sutopo, Wahyudi & Hisjam, Muhammad & Wicaksono, Hendro, 2024. "Estimating the market share of electric motorcycles: A system dynamics approach with the policy mix and sustainable life cycle costs," Energy Policy, Elsevier, vol. 195(C).
    7. Nie, Qingyun & Zhang, Lihui & Tong, Zihao & Hubacek, Klaus, 2022. "Strategies for applying carbon trading to the new energy vehicle market in China: An improved evolutionary game analysis for the bus industry," Energy, Elsevier, vol. 259(C).
    8. Lee Branstetter & Guangwei Li, 2024. "The Challenges of Chinese Industrial Policy," Entrepreneurship and Innovation Policy and the Economy, University of Chicago Press, vol. 3(1), pages 77-113.
    9. Khatua, Apalak & Ranjan Kumar, Rajeev & Kumar De, Supriya, 2023. "Institutional enablers of electric vehicle market: Evidence from 30 countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    10. 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).
    11. Guoping Tu & Zhe Zan, 2025. "The Green Paradox of New Energy Vehicles: A System Dynamics Analysis," Sustainability, MDPI, vol. 17(9), pages 1-30, April.
    12. Zhu, Ronghui & Ma, Tieju, 2025. "Policy mixes to promote the diffusion of battery electric vehicles with an agent-based model and experiments using the case of China," Energy Economics, Elsevier, vol. 142(C).
    13. 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).
    14. Yi, Yongxi & Fu, Ao & Li, Yuqiong & Zhang, Aoxiang, 2024. "Battery recycling and coordination in information leakage prevention under blockchain technology in a new energy vehicles supply chain," Energy Economics, Elsevier, vol. 139(C).
    15. Jie Gao & Qingmei Tan & Bo Cui, 2024. "Evolutionary Game Analysis of New Energy Transition Among Government, Traditional Automobile Enterprises, and Research Institutions Under the Dual Carbon Goals," Energies, MDPI, vol. 17(23), pages 1-20, November.
    16. Cheng, Qian & Xiong, Yongqing & Qin, Jiaqi, 2025. "Toward carbon reduction in electric vehicle products: Evidence from China's recommended catalogue policy," Research in Transportation Economics, Elsevier, vol. 110(C).
    17. Zhao, Yuntong & Jian, Zhaoquan & Du, Yushen, 2024. "How can China's subsidy promote the transition to electric vehicles?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    18. Xian, Yujiao & Wang, Qian & Fan, Wenrong & Da, Yabin & Fan, Jing-Li, 2022. "The impact of different incentive policies on new energy vehicle demand in China's gigantic cities," Energy Policy, Elsevier, vol. 168(C).
    19. Dom Kandpinijsha, 2024. "Economic Rent Dynamics in the Thai Automotive Industry: State Allocation During GVC Transition," RAIS Conference Proceedings 2022-2024 0475, Research Association for Interdisciplinary Studies.
    20. 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.

    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:5:p:1907-:d:1346085. 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.