Measuring the Policy Effectiveness of China’s New-Energy Vehicle Industry and Its Differential Impact on Supply and Demand Markets

Abstract

To promote the precise governance of China’s new-energy vehicle (NEV) industry, this paper quantitatively analyzes 204 policy texts on the NEV industry in China since 2007 and constructs an evaluation system of policy effectiveness from three dimensions of policy attributes, policy objectives, and policy measures to reveal the effectiveness and evolutionary trends of China’s NEV industry policies. In addition, this paper explores the two-way effects of different types of policy measures on the NEV supply and demand markets through an econometric model to reveal the differential impact effectiveness of various policy instruments in China’s NEV industry. The results indicate that China’s NEV industry has changed from “government-driven” to “government-driven + market-driven”, and the multi-sectoral policy coordination needs to be further improved; the dynamic evolution over the years reveals a similar pattern of change in the total effectiveness of policy issuance as influenced by the number of policies; the quantity of patents in China is large but the quality of patents is insufficient, and an overall problem of low level of core technology is being faced; taxation and subsidy measure, technical innovation measures, social guidance measures, and environmental support measures all effectively promote the development of the supply-side market, while taxation and subsidy measures, social guidance measures and legal regulation measures can better promote the development of the demand-side market; the impact of financial support measures on both supply and demand-side markets is not significant.