The Effects of Subsidy Policy on Electric Vehicles and the Supporting Regulatory Policies: Evidence From Micro Data of Chinese Mobile Manufacturers

Subsidy policy to electric vehicles in China was initially launched 2001. This study uses the perspective of characteristics subsidy and applies generalized propensity score matching (GPS) estimate impact different intensities on change consumer demand for EVs find interval optimize. The shows that optimization is 40%–70% treatment level, which maximizes effect China’s EVs. For a lower than 40%, it difficult effectively create an incentive enter market because consumers think product satisfy too low technology; by contrast, level higher 70%, cost high endurance mileage power battery increases exponentially, complementary subsidies insufficient. Consequently, we propose three suggestions: government should 1) use big data technology supervise design real-time reporting mechanism punishment subsidy-misuse; 2) adopt regulation promote range new energy (e.g., optimizing ladder, innovating form subsidies) gradually eliminate low-technology product; 3) reasonably targeted regulatory fraud breach contract encourage firms truthfully report technical indicators.