China’s new energy vehicle policies: Evolution, comparison and recommendation

Abstract

Environmental impact and climate change urge governments across the globe to prioritize to the development of new energy vehicles (NEVs). Since 2010, the Chinese government has introduced numerous policies to accelerate the development of the NEV industry. These policies have various effects on NEVs due to several complex factors, such as timing, regional economies, and other demands on the government’s attention. This paper investigates NEV policies that were launched by China’s national, provincial, and municipal authorities from 2010 to 2016 in terms of their similarities and differences, as well as their successes and failures. By doing so, we trace the evolution of Chinese NEV policies and compare them, in order to advise on the policies that are most beneficial to the future development of the Chinese NEV industry. The main results are as follows: (1) the implementation of NEV policies consisted of a “plan-pilot-promotion-subsidy-development” process; (2) the coordination mechanisms of central and local governments should be strengthened; (3) future policies should focus on infrastructure construction, research and development (R&D), the recycling of batteries, and private purchase regulations. This paper contributes to policy-making in Chinese NEV industry.