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Can New Energy Vehicle Promotion Policy Enhance Firm’s Supply Chain Resilience? Evidence from China’s Automotive Industry

Author

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  • Yongjing Chen

    (Naval University of Engineering, Wuhan 430033, China)

  • Xin Liang

    (Naval University of Engineering, Wuhan 430033, China)

  • Weijia Kang

    (Naval University of Engineering, Wuhan 430033, China)

Abstract

Whether the New Energy Vehicle Promotion Policy (NEVPP) enhances supply chain resilience is pivotal to China’s green transition and global industrial security. Using data on A-share listed automobile manufacturers from 2012 to 2024, this study employs a multi-period difference-in-differences approach to identify the policy’s impact. Results show that NEVPP significantly strengthens supply chain resilience, and the findings remain robust across alternative specifications. Mechanism analysis reveals that the policy raises managerial attention, eases financing constraints, and stimulates technological innovation, thereby enhancing resilience through managerial, financial, and technological channels. Heterogeneity analysis by ownership, geography, R&D intensity, analyst coverage, and institutional ownership shows that the effect is stronger for state-owned enterprises, firms in central and western regions, low-R&D firms, those without analyst coverage, those with high analyst attention, and firms with low institutional ownership. This study provides firm-level evidence on the economic consequences of NEVPP, advances understanding of industrial policy and corporate resilience, and offers policy implications for supporting the global energy transition and safeguarding supply chain stability.

Suggested Citation

  • Yongjing Chen & Xin Liang & Weijia Kang, 2026. "Can New Energy Vehicle Promotion Policy Enhance Firm’s Supply Chain Resilience? Evidence from China’s Automotive Industry," Sustainability, MDPI, vol. 18(2), pages 1-29, January.
  • Handle: RePEc:gam:jsusta:v:18:y:2026:i:2:p:701-:d:1837195
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