The influence of dual credit policy on new energy vehicle technology innovation under demand forecast information asymmetry

Abstract

New energy vehicles (NEVs) have become an effective way to solve environmental pollution and energy shortages in transportation. Therefore, China has issued Regulations on Average Fuel Consumption and New Energy Vehicle Credits for Passenger Vehicle Enterprises(dual credit policy), to promote the development of NEVs. This paper establishes a technological innovation decision-making model under the conditions of information asymmetry and information sharing. This model obtains the optimal solution for NEV technology innovation considering the market demand prediction of the manufacturer and supplier. Moreover, this paper provides the conditions for information sharing of demand forecasting for the manufacturer and supplier and designs the incentive mechanism for information sharing. The results show that the dual credit policy positively stimulates the technological innovation of NEVs, but information asymmetry negatively affects the dual credit policy's incentive effect. The supplier is always willing to share information; however, whether the manufacturer shares information depends on the supplier's technology innovation cost coefficient. In addition, implementing the dual credit policy enhances the manufacturer's and supplier's willingness to share information; the higher the credit coefficient of technological innovation and the credit price is, the stronger the manufacturer and supplier's willingness to share information.