Economic Benefit Analysis of Charging Models Based on Differential Electric Vehicle Charging Infrastructure Subsidy Policy in China

Abstract

The improvement of electric vehicle charging infrastructure (EVCI) is of great significance to the further development of the EV market. China has become the country with the fastest development of EVCI in the world. To make use of the utilization efficiency of subsidy funds, more efficient subsidy forms need to be explored urgently. This paper analyzes the economic benefits of various charging modes based on differentiated subsidy policies in China. Firstly, the paper analyzes the changing trend of subsidy policies and summarizes the subsidy policies for EVCI. Then, two business models of EVCI construction are analyzed. Finally, based on the diversity of subsidies for EVCI and cost-benefit theory, a case study involving benefits of three charging models is analyzed according to the subsidy policies of China's three major first-tier cities—Beijing, Shenzhen and Shanghai. The results indicate 7 kW slow charging is only suitable for household charging but not for commercial operation. Subsidies at operational stage are more conducive to the construction of EVCI. The utilization rate of charging piles and charging service fee are the two most critical factors affecting the economic benefits. The results will provide a reference for the policymakers and EVCI investors.