Does “Dual Credit Policy” Really Matter in Corporate Competitiveness?

Abstract

Developing the new energy vehicle (NEV) industry significantly reduces pollutant emissions in the transportation sector, promotes high-quality carbon peaks, and reduces dependence on oil imports. Industrial policies also support the NEV industry, constantly enhancing its international competitiveness. The Dual Credit Policy, implemented in 2017, has pressured automotive manufacturers to transform their production models, reduce the output of traditional fuel vehicles, and increase the production of NEV. This study analyzes the effects of the Dual Credit Policy on corporate competitiveness before and after implementing it, using listed companies in China’s NEV industry as the research subjects. The results indicate that the Dual Credit Policy significantly enhanced corporate competitiveness through substantial innovation. Additionally, the difference-in-differences (DID) model results reveal that the policy’s promotional effect is more pronounced in traditional vehicle companies due to higher pressure. Heterogeneity tests show that the policy has a more significant effect on state-owned enterprises and that regional marketization differences lead to a greater promotional impact on enterprises in the central and eastern regions.