Effects of mixed policies on the cooperative and noncooperative strategies of auto manufacturers and charging infrastructure operators considering consumer preferences

Abstract

ABSTRACT The dual-credit policy for auto manufacturers and the subsidy policy for charging infrastructure operators have become important policies to guide and promote the development of the automotive industry. However, few studies consider the impact of mixed policies on the market strategies of auto manufacturers and charging infrastructure operators considering consumer green preferences. To fill the gap, this article establishes optimization models to analyze and compare the effects of mixed policies on the decision-making of auto manufacturers and charging infrastructure operators under the cooperative and noncooperative modes considering consumer preference. The results reveal four main insights: (1) Two types of policies all have direct positive effects on the market diffusion of electric vehicles. Under the noncooperative mode, the dual-credit policy has no spillover effect. Under cooperative mode, two types of policies all have spillover effects. The dual-credit policy and charging infrastructure subsidy policy have positive superposition effects on the optimal number of charging piles, and the optimal demands for electric vehicles. (2) When the credit price is less than a certain threshold, there is a substitutive effect between the charging infrastructure subsidy policy and the dual-credit policy on promoting the market diffusion of electric vehicles. (3) There is a substitutive effect between high-level consumers’ green preference and policies on promoting the market diffusion of electric vehicles. (4) Under the cooperative mode, the direct and spillover effects of policies are more than that are under the noncooperative mode. These insights demonstrate the effectiveness and limitations of policies and the importance of providing complementary policies for consumers. The government should encourage market cooperation between auto manufacturers and charging infrastructure operators, maintain a stable price level for credits, and introduce incentive policies for green consumption.