Effect of investment regulations and subsidies on the proliferation of next generation vehicles in China

Research output: Contribution to journalArticle

Abstract

We built a theoretical model of Bertrand competition among joint-venture automobile firms, and examined through numerical simulations the situations in which the Chinese government promotes either hybrid or electric vehicles. We took into account investment ratio regulations with regard to joint ventures and investigated the effects of investment regulations and subsidies that were considered part of environmental policy. Our results indicated that given the high manufacturing cost of electric vehicles and the high level of environmental damage caused by power generation, subsidies relating to hybrid vehicles lead to higher social welfare than those relating to electric vehicles.

Original languageEnglish
Pages (from-to)23-29
Number of pages7
JournalEvergreen
Volume2
Issue number1
DOIs
Publication statusPublished - Jan 1 2015

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electric vehicle
Electric vehicles
joint venture
Hybrid vehicles
power generation
environmental policy
Automobiles
Power generation
automobile
manufacturing
Computer simulation
cost
simulation
effect
subsidy
vehicle
regulation
Costs

All Science Journal Classification (ASJC) codes

  • Electronic, Optical and Magnetic Materials
  • Ceramics and Composites
  • Surfaces, Coatings and Films
  • Management, Monitoring, Policy and Law

Cite this

Effect of investment regulations and subsidies on the proliferation of next generation vehicles in China. / Moroga, Kana; Fujita, Toshiyuki.

In: Evergreen, Vol. 2, No. 1, 01.01.2015, p. 23-29.

Research output: Contribution to journalArticle

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