Research on credit pricing mechanism in dual-credit policy: is the government in charge or is the market in charge?

2022 ◽  
Author(s):  
Dong-Xiao Yang ◽  
Lei Yang ◽  
Xiao-Ling Chen ◽  
Chan Wang ◽  
Pu-Yan Nie
Keyword(s):  
Dual Credit ◽  
Credit Policy ◽  
Pricing Mechanism ◽  
Credit Pricing ◽  
The Government

scholarly journals Evaluating China’s Passenger Vehicle Market under the Vehicle Policies of 2021–2023

2021 ◽  
Vol 12 (2) ◽  
pp. 72
Author(s):  
Shiqi Ou ◽  
Rujie Yu ◽  
Zhenhong Lin ◽  
Xin He ◽  
Jessey Bouchard ◽  
...  
Keyword(s):  
Electric Vehicles ◽  
Large Scale ◽  
Dual Credit ◽  
National Laboratory ◽  
Analysis Tool ◽  
Credit Policy ◽  
Oak Ridge ◽  
New Energy ◽  
Hybrid Electric ◽  
The Government

China is well known for its determination on large-scale vehicle electrification, which currently is mainly driven by fuel economy and electric vehicle policies mixed with the extensive charging infrastructure support and monetary incentives from the government. This study adopted the New Energy and Oil Consumption Credits (NEOCC) model 2020 version, a vehicle policy analysis tool developed by the Oak Ridge National Laboratory, in order to systematically quantify the potential impacts of the “Passenger Cars Corporate Average Fuel Consumption and New Energy Vehicle Credit Regulation”, which is a revised version released in June 2020 for the timeframe 2021–2023, the so-called dual credit policy (2021–2023). It was found that, under the dual credit policy (2021–2023), the sales of hybrid electric vehicles could reach 0.91 million by the end of 2023, which would increase much faster than they did in 2018–2020. The annual sales share of plug-in electric vehicles (PEVs) could reach 11.7%, and the PEV stocks could achieve 11.70 million by the end of 2023 if it keeps the expansion to the level of how it was in 2017. In addition, the BEVs with long electric range (such as 400 km) and the plug-in hybrid electric SUVs could be the most popular PEV types.

scholarly journals Forum on Tesla and the Global Automotive Industry

2018 ◽  
Vol 14 (3) ◽  
pp. 467-470 ◽  
Author(s):  
Liisa Välikangas
Keyword(s):  
Automotive Industry ◽  
Fossil Fuel ◽  
Dual Credit ◽  
High Tech ◽  
Credit Policy ◽  
Large Cities ◽  
Global Leader ◽  
World Class ◽  
The Government ◽  
Game Changer

China, the world's largest market for electric vehicles (EV), has put in play a state industrial policy that is seeking to upend global automakers (see Financial Times, October 12, 2017 and May 20, 2018). Exemptions from taxes and subsidy programs have favored the purchasing of an EV, which are also exempt from driving restrictions in large cities such as Beijing and Shanghai. Policies that target manufacturers include meeting production targets for EVs (the so-called dual-credit policy by the Ministry of Industry and Information Technology). China may be on the verge of becoming a global disruptor in an industry that has home market advantages of scale, lower fossil fuel imports, and significant reduction of air pollution in cities while exploiting related technologies such as lithium batteries where China has world class industrial competence. It is in China's national interest to be a game changer in the global automotive industry from fossil fuel to electricity. And building infrastructure – supercharging stations included – fits the government-directed approach that aspires to establish the country as an undisputable global leader in a high-tech sector of global significance.

Conventional automotive supply chains under China's dual-credit policy: fuel economy, production and coordination

Energy Policy ◽  
2021 ◽  
Vol 151 ◽  
pp. 112166
Author(s):  
Haicheng Ma ◽  
Gaoxiang Lou ◽  
Tijun Fan ◽  
Hing Kai Chan ◽  
Sai Ho Chung
Keyword(s):  
Supply Chains ◽  
Fuel Economy ◽  
Dual Credit ◽  
Credit Policy ◽  
Automotive Supply

Electrification decisions of traditional automakers under the dual-credit policy regime

2021 ◽  
Vol 98 ◽  
pp. 102956
Author(s):  
Haonan He ◽  
Shiqiang Li ◽  
Shanyong Wang ◽  
Zhuru Chen ◽  
Jinxi Zhang ◽  
...  
Keyword(s):  
Dual Credit ◽  
Credit Policy ◽  
Policy Regime

Production Strategy for Manufacturer under Dual-credit Policy

2021 ◽  
Author(s):  
Miaomiao Ma ◽  
Weidong Meng ◽  
Bo Huang
Keyword(s):  
Dual Credit ◽  
Credit Policy ◽  
Production Strategy

scholarly journals Greenhouse gas consequences of the China dual credit policy

2020 ◽  
Vol 11 (1) ◽  
Author(s):  
Xin He ◽  
Shiqi Ou ◽  
Yu Gan ◽  
Zifeng Lu ◽  
Steven Victor Przesmitzki ◽  
...  
Keyword(s):  
Greenhouse Gas ◽  
Internal Combustion Engines ◽  
Dual Credit ◽  
Ghg Emissions ◽  
Passenger Vehicle ◽  
Credit Policy ◽  
Modeling Framework ◽  
New Energy ◽  
Vehicle Fleet ◽  
New Energy Vehicle

Abstract For over ten years, China has been the largest vehicle market in the world. In order to address energy security and air quality concerns, China issued the Dual Credit policy to improve vehicle efficiency and accelerate New Energy Vehicle adoption. In this paper, a market-penetration model is combined with a vehicle fleet model to assess implications on greenhouse gas (GHG) emissions and energy demand. Here we use this integrated modeling framework to study several scenarios, including hypothetical policy tweaks, oil price, battery cost and charging infrastructure for the Chinese passenger vehicle fleet. The model shows that the total GHGs of the Chinese passenger vehicle fleet are expected to peak in 2032 under the Dual Credit policy. A significant reduction in GHG emissions is possible if more efficient internal combustion engines continue to be part of the technology mix in the short term with more New Energy Vehicle penetration in the long term.

scholarly journals The dual-credit policy: Quantifying the policy impact on plug-in electric vehicle sales and industry profits in China

Energy Policy ◽  
2018 ◽  
Vol 121 ◽  
pp. 597-610 ◽  
Author(s):  
Shiqi Ou ◽  
Zhenhong Lin ◽  
Liang Qi ◽  
Jie Li ◽  
Xin He ◽  
...  
Keyword(s):  
Electric Vehicle ◽  
Dual Credit ◽  
Policy Impact ◽  
Credit Policy

scholarly journals The Government Incentive Regulation Model and Pricing Mechanism in Power Transmission and Distribution Market

2016 ◽  
Vol 2016 ◽  
pp. 1-9
Author(s):  
Huan Zhang ◽  
Jian-li Jiang
Keyword(s):  
Social Welfare ◽  
Power Transmission ◽  
Optimal Investment ◽  
Natural Monopoly ◽  
Incentive Regulation ◽  
Technical Parameter ◽  
Pricing Mechanism ◽  
The Government ◽  
Regulation Model ◽  
Transmission And Distribution

The power transmission and distribution (T&D) market’s natural monopoly and individual information have been the impediment to improving the energy efficiency in the whole T&D market. In order to improve the whole social welfare, T&D market should be controlled by government. An incentive regulation model with the target of maximizing social welfare has been studied. A list of contracts with transferring payment and quantity of T&D are given to motivate the corporation to reveal the true technical parameter and input the optimal investment. The corporate revenue, optimal investment, and effort are proved to depend on its own technical parameter. The part of incentive regulation model ends with the optimal pricing mechanism of T&D market. At the end of this paper, we give a numerical example to explain our research and confirm its function graphically.

scholarly journals Production Forecast of China’s New Energy Passenger Vehicles in 2021–2023 under the Compliance of Dual-Credit Policy

2021 ◽  
Vol 12 (3) ◽  
pp. 119
Author(s):  
Li Lv ◽  
Xi Li
Keyword(s):  
Fuel Consumption ◽  
Dual Credit ◽  
Test Procedure ◽  
Credit Policy ◽  
Production Forecast ◽  
New Energy ◽  
Vehicle Test ◽  
Production Requirement ◽  
New Energy Vehicle ◽  
New Energy Vehicles

The corporate average fuel consumption (CAFC) and new energy vehicle (NEV) credit policy (2021–2023) was officially released in June 2020. As a mandatory regulation for automobile manufacturers to produce new energy vehicles, its impact on the output of new energy vehicles needs to be systematically evaluated. In this study, we build an enterprise policy compliance model to simulate the dual-credit policy requirements for the production of new energy vehicles from 2021 to 2023 under different scenarios. The results show that the production of new energy vehicles from 2021 to 2023 is required to reach 1.78 to 3.97 million under different scenarios. Three factors, i.e., switching from New Europe Driving Cycle (NEDC) to World Light Vehicle Test Procedure (WLTP) fuel consumption improvement of conventional vehicles, and credit per new energy vehicle, have a more significant impact on the new energy vehicle production than others. Under the minimum guarantee scenario, a 10% change in the above three factors will lead to a 2.5%, 1.5%, and 0.5% reduction in the production requirement for new energy vehicles.

scholarly journals Phased Impacts of China’s Dual-Credit Policy on R&D

2021 ◽  
Vol 9 ◽  
Author(s):  
Xu Li ◽  
Qing Y. Xiong
Keyword(s):  
Research And Development ◽  
Dual Credit ◽  
Vehicle Group ◽  
Control Group ◽  
Passenger Vehicle ◽  
Credit Policy ◽  
Implementation Period ◽  
The Difference ◽  
Sustainability Policy ◽  
Experimental Group

As a sustainability policy in emerging markets, the dual-credit policy was implemented in China to promote automakers expanding investment in research and development, and ultimately achieve the energy-saving and emission-reduction goals of the auto industry. We regard the dual-credit policy as a quasi-natural experiment, use the difference-in-difference model to divide Chinese automakers into an experimental group (the passenger vehicle group) and a control group (the commercial vehicle group), and analyze the impacts of the dual-credit policy in the brewing period (2014–2016) and the implementation period on the scale, intensity, and structure of research and development investment. We found that the dual-credit policy has significantly promoted the research and development investment of automakers, and the heterogeneity of automakers has a moderating effect on the policy effects. In addition, we also found that there are certain differences in the significance and stability of the effects of the dual-credit policy during the brewing period and the implementation period. Finally, we presented some management insights into the response to the dual-credit policy.

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