Impact of policies on electric vehicle diffusion: An evolutionary game of small world network analysis

Abstract

To deal with severe energy and environmental problems, the development of electric vehicles has become a global consensus. Faced with the challenges of the future development of electric vehicles in China, the government has been continuously introducing policies promoting electric vehicle industry. This paper uses the NW (Newman and Watts) ‘small world’ network model to explore the dynamic effects of different policies on the diffusion of electric vehicles. The results show that the government’s purchase subsidy policy and restricted travel policy can promote the diffusion rate of automobiles to 60%, and the short-term effect is remarkable. Production subsidies and infrastructure construction policies can promote the diffusion rate of electric vehicles to 70%. Manufacturers’ production subsidies have a greater impact on electric vehicles than consumers’ purchase subsidies. At the same time, low electricity prices and high oil prices will drive the diffusion rate of electric vehicles to 60% and 70% respectively. Finally, combined with the current policy and industry development status, the future development prospects are proposed.