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The impact of government policy on preference for NEVs: the evidence from China

Author

Listed:
  • Xian Zhang
  • Ke Wang
  • Yu Hao
  • Yi-Ming Wei

    () (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)

  • Jing-Li Fan

Abstract

To reduce gasoline consumption and emissions, the Chinese government has introduced a series of preferential policies to encourage the purchase of New-Energy Vehicles (NEVs). However, enthusiasm for the private purchase of NEVs appears to be very low. This timely paper addresses the need for an empirical study to explore this phenomenon by identifying purchase motivations of potential NEV consumers and examining the impact of government policies introduced to promote NEVs in China. A questionnaire survey was carried out. The acceptance of NEVs is measured in three different Logistic models: the willingness of consumers to purchase NEVs, the purchasing time and the acceptable price, the establishment of three multivariate logistic regression models. The results showed that financial benefits, performance attributes, environmental awareness and psychological needs are the four most important factors influencing consumers' acceptance of NEVs. Among these, performance attributes rather than financial benefits is the most important indicator. The moderating effect of government policies to relations between purchasing intention, time and price is not strong as respected while the policy implications are clear that the 'public awareness of government policy' functions as a moderator in the process of acceptance. These findings could give some hints to the government to make better NEV industry policy.

Suggested Citation

  • Xian Zhang & Ke Wang & Yu Hao & Yi-Ming Wei & Jing-Li Fan, 2016. "The impact of government policy on preference for NEVs: the evidence from China," CEEP-BIT Working Papers 88, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
  • Handle: RePEc:biw:wpaper:88
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    More about this item

    Keywords

    New Energy Vehicles; Government Policy; Purchasing Motivations;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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