Can the Dual-Credit Policy Help China’s New Energy Vehicle Industry Achieve Corner Overtaking?

Abstract

The purpose of the dual-credit policy is to promote the healthy and sustainable development of China’s new energy vehicle industry. This study took the dual-credit policy as the background, took the new energy vehicle listed companies in the Shanghai and Shenzhen stock markets in China as the research object, and used the difference-in-difference model to verify the impact of the dual-credit policy on the performance of new energy vehicle companies and identify the mechanism behind its role. The study found the following: (1) the dual-credit policy significantly improves the performance of listed new energy vehicle companies, but the marginal utility of the policy will diminish; (2) the impact of the dual-credit policy on the performance of domestic listed new energy vehicle companies is better than that of joint venture listed new energy vehicle companies; (3) the dual-credit policy mainly enhances the competitiveness of listed new energy vehicle companies through the market expectation of enterprises and market competition mechanism; (4) there is heterogeneity in the mechanism of the dual-credit policy for domestic and joint venture new energy vehicles. The research in this paper is helpful for evaluating the economic effect of the dual-credit policy, and it has implications for the healthy and orderly development of the new energy vehicle industry.