IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v45y2024i2p975-988.html
   My bibliography  Save this article

Optimal timing for nonsubsidized policy implementation in the electric vehicle industry

Author

Listed:
  • Suyuan Wang
  • Gengxin Wang
  • Huaming Song
  • Hongfu Huang

Abstract

This research examines a scenario involving an electric vehicle (EV) manufacturer promoting innovation, a retailer focusing on advertising and service (A&S), and a government implementing nonsubsidized policies to enhance social welfare and spur EV adoption. The nonsubsidized policies under consideration are classified as ex‐ante (EA), ex‐ing (EI), or ex‐post (EP), depending on their chronological deployment. Our findings indicate that EI is consistently suboptimal due to the presence of the (anti‐)synergy effect. However, either the EA or EP policy proves optimal: EA is preferred when consumers value EV innovation and A&S whereas EP is desirable when associated costs are inefficient.

Suggested Citation

  • Suyuan Wang & Gengxin Wang & Huaming Song & Hongfu Huang, 2024. "Optimal timing for nonsubsidized policy implementation in the electric vehicle industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 975-988, March.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:2:p:975-988
    DOI: 10.1002/mde.4045
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.4045
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.4045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yang, Jun & Guo, Fang & Zhang, Min, 2017. "Optimal planning of swapping/charging station network with customer satisfaction," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 174-197.
    2. Li-Hao Zhang & Shan-Shan Wang, 2022. "Strategic analysis of RFID adoption sequences in a supply chain with Cournot competition: effects of ordering-timing strategies," Annals of Operations Research, Springer, vol. 315(2), pages 2169-2208, August.
    3. Li, Guo & Li, Lin & Sun, Jiasen, 2019. "Pricing and service effort strategy in a dual-channel supply chain with showrooming effect," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 32-48.
    4. Huan Zhang & Xinxin Xu & Wei Liu & Zhiyou Jia, 2020. "Green supply chain decision modeling under financial policy, with or without uniform government emission reduction policy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 1040-1056, September.
    5. Lu, Lijue & Navas, Jorge, 2021. "Advertising and quality improving strategies in a supply chain when facing potential crises," European Journal of Operational Research, Elsevier, vol. 288(3), pages 839-851.
    6. 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).
    7. Amirmohsen Golmohammadi & Alireza Tajbakhsh & Mohamed Dia & Pawoumodom M. Takouda, 2022. "Effect of timing on reliability improvement and ordering decisions in a decentralized assembly system," Annals of Operations Research, Springer, vol. 312(1), pages 159-192, May.
    8. Fangruo Chen, 2005. "Salesforce Incentives, Market Information, and Production/Inventory Planning," Management Science, INFORMS, vol. 51(1), pages 60-75, January.
    9. Li, Jingjing & Jiao, Jianling & Tang, Yunshu, 2019. "An evolutionary analysis on the effect of government policies on electric vehicle diffusion in complex network," Energy Policy, Elsevier, vol. 129(C), pages 1-12.
    10. Wang, Yao-Yu & Wang, Jian-Cai & Shou, Biying, 2013. "Pricing and effort investment for a newsvendor-type product," European Journal of Operational Research, Elsevier, vol. 229(2), pages 422-432.
    11. Jiayi Joey Yu & Christopher S. Tang & Musen Kingsley Li & Zuo‐Jun Max Shen, 2022. "Coordinating Installation of Electric Vehicle Charging Stations between Governments and Automakers," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 681-696, February.
    12. Chen, Jen-Yi & Dimitrov, Stanko & Pun, Hubert, 2019. "The impact of government subsidy on supply Chains’ sustainability innovation," Omega, Elsevier, vol. 86(C), pages 42-58.
    13. Fei Lv, 2023. "Pricing and corporate social responsibility investment strategies for a manufacturer under information asymmetry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(6), pages 3215-3232, September.
    14. Liu, Baoshan & Ma, Shihua & Guan, Xu & Xiao, Lei, 2018. "Timing of sales commitment in a supply chain with manufacturer-quality and retailer-effort induced demand," International Journal of Production Economics, Elsevier, vol. 195(C), pages 249-258.
    15. Zheng, Zhong & Chen, Zhiyuan & Savaser, Sinem Kinay, 2021. "The implications of contract timing on a supply chain with random yield," International Journal of Production Economics, Elsevier, vol. 240(C).
    16. Zhou, Guanghui & Ou, Xunmin & Zhang, Xiliang, 2013. "Development of electric vehicles use in China: A study from the perspective of life-cycle energy consumption and greenhouse gas emissions," Energy Policy, Elsevier, vol. 59(C), pages 875-884.
    17. Feng Liu & Yingshuang Tan & Sudipto Sarkar & Xueqing Zhang & Xingjun Huang, 2023. "When to invest in electric vehicles under dual credit policy: A real options approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2186-2198, June.
    18. Xiao, Lei & Xu, Minghui & Zheng, Jun-Jun & Huang, Song, 2020. "Inducing manufacturer’s quality enhancement via retailer’s acquisition strategy," Omega, Elsevier, vol. 93(C).
    19. Makena Coffman & Paul Bernstein & Sherilyn Wee, 2017. "Electric vehicles revisited: a review of factors that affect adoption," Transport Reviews, Taylor & Francis Journals, vol. 37(1), pages 79-93, January.
    20. 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.
    21. Yi, Zonggen & Bauer, Peter H., 2016. "Optimization models for placement of an energy-aware electric vehicle charging infrastructure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 227-244.
    22. Yong Liu & Qian Xu & Zhi‐yang Liu, 2020. "A coordination mechanism through value‐added profit distribution in a supply chain considering corporate social responsibility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 586-598, June.
    23. Gurnani, Haresh & Erkoc, Murat & Luo, Yadong, 2007. "Impact of product pricing and timing of investment decisions on supply chain co-opetition," European Journal of Operational Research, Elsevier, vol. 180(1), pages 228-248, July.
    24. Ruifeng Gong & Jian Xue & Ruli Liu & Jinhua Zhou & Laijun Zhao, 2022. "A closed‐loop supply chain decision model considering corporate social responsibility and value‐added services," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1704-1720, September.
    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. Guo, Xiongfei & Chen, Jing, 2023. "Manufacturer’s quality improvement and Retailer’s In-store service in the presence of customer returns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    2. Chu, Yi & Yu, Hui & Li, Ying, 2024. "How do supply- and demand-side dynamics and subsidies affect the prospects for electric vehicle battery swapping services? Evidence from an evolutionary analysis," Energy, Elsevier, vol. 308(C).
    3. Zheng, Zhong & Chen, Zhiyuan & Savaser, Sinem Kinay, 2021. "The implications of contract timing on a supply chain with random yield," International Journal of Production Economics, Elsevier, vol. 240(C).
    4. Wu, Xiangxiang & Zha, Yong & Yu, Yugang, 2022. "Asymmetric retailers’ sales effort competition in the presence of a manufacturer’s help," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    5. Avinadav, Tal & Levy, Priel, 2023. "The effect of an uncertain commission rate on the decisions of a capital-constrained developer," Operations Research Perspectives, Elsevier, vol. 11(C).
    6. Feng Liu & Xingjun Huang & Longxiao Li, 2024. "The impact of green consumers on electric vehicle charging station diffusion based on complex network evolutionary game," Energy & Environment, , vol. 35(8), pages 3981-4002, December.
    7. Zhang, Tong & Burke, Paul J. & Wang, Qi, 2024. "Effectiveness of electric vehicle subsidies in China: A three-dimensional panel study," Resource and Energy Economics, Elsevier, vol. 76(C).
    8. Duan, Housheng & Deng, Sijing & Song, Haiqing & Xu, Jiayan, 2021. "The impacts of sales efforts and mode of payment on the competition between agent and retailer," Omega, Elsevier, vol. 103(C).
    9. Gao, Jiong & Ma, Shoufeng & Zou, Hongyang & Du, Huibin, 2023. "How does population agglomeration influence the adoption of new energy vehicles? Evidence from 290 cities in China," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    10. Tal Avinadav & Priel Levy, 2025. "Contracting under information superiority in a supply chain of subscription-based apps: a comparative analysis," Annals of Operations Research, Springer, vol. 344(2), pages 721-757, January.
    11. Ruijuan Zhao & Yihan Guo & Xiaolin Chu, 2022. "Manufacturer’s Incentive Strategies in a Dual-Channel Supply Chain with Moral Hazard: A Long-Term Perspective," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    12. Wang, Qiang & Ji, Xiang & Zhao, Nenggui, 2024. "Embracing the power of AI in retail platform operations: Considering the showrooming effect and consumer returns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    13. Avinadav, Tal & Levy, Priel, 2024. "Improving efficiency in supply chains with a capital-constrained app developer under the agency contract," European Journal of Operational Research, Elsevier, vol. 315(3), pages 991-1005.
    14. Niu, Baozhuang & Jin, Delong & Pu, Xujin, 2016. "Coordination of channel members’ efforts and utilities in contract farming operations," European Journal of Operational Research, Elsevier, vol. 255(3), pages 869-883.
    15. Luo, Qi & Yin, Yunlei & Chen, Pengyu & Zhan, Zhenfei & Saigal, Romesh, 2022. "Dynamic subsidies for synergistic development of charging infrastructure and electric vehicle adoption," Transport Policy, Elsevier, vol. 129(C), pages 117-136.
    16. Li Liu & Zhe Wang & Jiangtao Xu & Zaisheng Zhang, 2023. "Green baton: how government interventions advance green technological innovation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11121-11152, October.
    17. Zheng, Xuemei & Menezes, Flavio & Zheng, Xiaofeng & Wu, Chengkuan, 2022. "An empirical assessment of the impact of subsidies on EV adoption in China: A difference-in-differences approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 121-136.
    18. Fan, Ruguo & Bao, Xuguang & Du, Kang & Wang, Yuanyuan & Wang, Yitong, 2022. "The effect of government policies and consumer green preferences on the R&D diffusion of new energy vehicles: A perspective of complex network games," Energy, Elsevier, vol. 254(PA).
    19. Haixiang Wu & Bing Xu & Ding Zhang, 2019. "Closed-Loop Supply Chain Network Equilibrium Model with Subsidy on Green Supply Chain Technology Investment," Sustainability, MDPI, vol. 11(16), pages 1-26, August.
    20. Li, Guo & Wu, Huamin & Sethi, Suresh P. & Zhang, Xiang, 2021. "Contracting green product supply chains considering marketing efforts in the circular economy era," International Journal of Production Economics, Elsevier, vol. 234(C).

    More about this item

    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:wly:mgtdec:v:45:y:2024:i:2:p:975-988. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.