IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v18y2026i13p6890-d1984965.html

Research on the Optimal Production Decision-Making Model of Fuel and New Energy Vehicle Manufacturers Under the Dual-Credit Policy

Author

Listed:
  • Yizhe Wang

    (School of Computer Science and Artificial Intelligence, Beijing Wuzi University, Beijing 101149, China
    Pompea College of Business, University of New Haven, New Haven, CT 06516, USA)

  • Zhiyong Tian

    (School of Computer Science and Artificial Intelligence, Beijing Wuzi University, Beijing 101149, China)

  • Shuping Wang

    (School of Economics and Management, North China University of Technology, Beijing 100144, China)

Abstract

To achieve dual-carbon goals and advance the sustainable development of the automotive industry, China’s Dual-Credit Policy serves as the core long-term mechanism for the low-carbon transition of the automotive industry. Given the coexistence of fuel vehicles (FVs) and new energy vehicles (NEVs) in China, existing research often overemphasizes production output while neglecting energy consumption control, and focuses predominantly on NEVs at the expense of FV optimization. To address these gaps, this paper treats FV fuel consumption and NEV energy efficiency as core endogenous decision variables. We construct profit-maximizing optimal production decision models for both types of manufacturers under the Dual-Credit Policy. Through mathematical derivation, numerical simulations, and empirical tests using actual industrial parameters, this study verifies the existence and uniqueness of optimal solutions. It clarifies the influence mechanisms of policy and market factors on corporate energy decisions and identifies the rules of strategy dominance. The findings reveal that the optimal fuel consumption decisions of FV manufacturers exhibit distinct piecewise patterns and critical threshold effects. Specifically, credit prices, NEV quotas, and fuel consumption standards determine the dominance of compliant (low-consumption) versus non-compliant (high-consumption) strategies. Furthermore, the policy exerts a significant market-oriented positive incentive on the energy efficiency upgrading of NEV manufacturers, with credit prices, market demand, and R&D costs acting as core constraints. Notably, the transition-guiding effect of the policy has clear effective boundaries, and its efficacy highly depends on the alignment between parameter design and market conditions. This research provides theoretical support for manufacturers to formulate energy-optimized production decisions and offers actionable references for the continuous optimization of the Dual-Credit Policy system and the sustainable low-carbon transformation of China’s automotive sector.

Suggested Citation

  • Yizhe Wang & Zhiyong Tian & Shuping Wang, 2026. "Research on the Optimal Production Decision-Making Model of Fuel and New Energy Vehicle Manufacturers Under the Dual-Credit Policy," Sustainability, MDPI, vol. 18(13), pages 1-30, July.
  • Handle: RePEc:gam:jsusta:v:18:y:2026:i:13:p:6890-:d:1984965
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/18/13/6890/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/18/13/6890/
    Download Restriction: no
    ---><---

    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:18:y:2026:i:13:p:6890-:d:1984965. 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.

    We have no bibliographic references for this item. You can help adding them by using 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 The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (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.