Abstract
The implementation of the parallel management method for Corporate Average Fuel Consumption (CAFC) and New Energy Vehicles (NEV) Credits (thereafter “the dual-credit policy”) has increased the pressure on conventional automakers, although multiple ways to comply with this policy exist. We develop a decision-making model to optimize the fuel economy improvement level and the production of internal combustion engine vehicles (ICEVs) under the dual-credit policy. Combined with theoretical analysis and numerical simulation methods, the effects of the dual-credit policy on the enterprise level are discussed. The implementation of the dual-credit policy may not be able to help automakers improve the fuel economy of ICEVs or reduce the production of high fuel consumption vehicles (HFCVs). When the year-end NEV credit of an automaker does not meet the standard, the dual-credit policy is not conducive to the production of energy-efficient vehicles, but increases HFCV production. We recommend that the policy should decouple the standard of an NEV credit from ICEV production and establish a reasonable upper and lower limit for the price of credit transactions. We also suggest that different NEV accounting discount multiples should be established for different automakers, as a one-size-fits-all policy is not necessarily optimized.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.