Abstract
As a sustainability policy in emerging markets, the dual-credit policy was implemented in China to promote automakers expanding investment in research and development, and ultimately achieve the energy-saving and emission-reduction goals of the auto industry. We regard the dual-credit policy as a quasi-natural experiment, use the difference-in-difference model to divide Chinese automakers into an experimental group (the passenger vehicle group) and a control group (the commercial vehicle group), and analyze the impacts of the dual-credit policy in the brewing period (2014–2016) and the implementation period on the scale, intensity, and structure of research and development investment. We found that the dual-credit policy has significantly promoted the research and development investment of automakers, and the heterogeneity of automakers has a moderating effect on the policy effects. In addition, we also found that there are certain differences in the significance and stability of the effects of the dual-credit policy during the brewing period and the implementation period. Finally, we presented some management insights into the response to the dual-credit policy.
Highlights
Since 2015, China has become the world’s largest producer and marketer of new energy vehicles (NEVs)1 for six consecutive years,2 but there is still a lack of major breakthroughs in the key-core technologies of NEVs (Wang, et al, 2020)
The policy stipulates that the CAFCnegative credits (CAFC−) must be offset, and the ways of compensation include the CAFC-positive credits (CAFC+) carry-over in the previous year, CAFC+ transferred by affiliated enterprises, or own NEV-positive credits (NEV+) or NEV+ from other automaker
Our study explores nonsubsidized policies in the NEV industry (i.e., China), but the difference is that we focus on the impact of technical standard policy on R&D in the NEV industry
Summary
Since 2015, China has become the world’s largest producer and marketer of new energy vehicles (NEVs) for six consecutive years, but there is still a lack of major breakthroughs in the key-core technologies of NEVs (Wang, et al, 2020). The policy stipulates that the CAFCnegative credits (CAFC−) must be offset, and the ways of compensation include the CAFC-positive credits (CAFC+) carry-over in the previous year, CAFC+ transferred by affiliated enterprises, or own NEV-positive credits (NEV+) or NEV+ from other automaker These rules will force automakers to expand R&D investment in the short term and achieve CAFC+ assessment standards through energy-saving and efficiencyenhancing technologies. We divide the impact of the dual-point policy into the brewing period and the implementation period, and compare the phased characteristics of the policy effects at different periods (Did Result Section). 3) In terms of research conclusions, we found that the automakers took the initiative to respond during the brewing period and make arrangements in advance This is different from some conclusions of existing researches, which provides new insights for academic researchers and policy-makers (Conclusion Section). The Literature Review and Theoretical Analysis section conducts the literature review and formulates the research hypotheses; The Model and Methods section provides a detailed description of the design of this study; the Empirical Analysis section derives the empirical results; and the Conclusion and Policy Implications section summarizes the full article and draws relevant policy implications
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