The dual-credit policy: Quantifying the policy impact on plug-in electric vehicle sales and industry profits in China
Abstract
We report that the Passenger Cars Corporate Average Fuel Consumption and New Energy Vehicle Credit Regulation (dual-credit policy) was enacted by the Chinese government in 2017 to stimulate the fuel-efficient and electrification technologies in the China's passenger vehicle market. Here, this study summarizes the dual-credit policy and develops the New Energy and Oil Consumption Credits Model to quantify the impacts of this policy on consumer choices and industry profits, where internal subsidies as decision variables are used to represent industry responses to the policy. Scenarios in 2016–2020 are simulated and discussed. Key findings from the model results include: (1) the Corporate Average Fuel Consumption rules alone may stimulate more plug-in electric vehicle (PEV) sales than the dual-credit policy; however, (2) the dual-credit policy could stimulate more battery electric vehicles (BEVs) in market, compared to other policy scenarios; (3) the industry could “lose” approximately $2122/vehicle by 2020 under the dual-credit policy; (4) battery electric sedans with a range greater than 250 km and plug-in hybrid SUVs could be popular under the dual-credit policy; (5) credit allocations for BEVs in the dual-credit policy can influence the PEV production; and (6) reduction of the fuel-efficient technology costs helps to minimize profit losses impactedmore »
- Authors:
-
- Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States). National Transportation Research Center
- China Automotive Technology and Research Center, Tianjin (China)
- Aramco Services Company: Aramco Research Center, Detroit, MI (United States)
- Publication Date:
- Research Org.:
- Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
- Sponsoring Org.:
- USDOE
- OSTI Identifier:
- 1470890
- Grant/Contract Number:
- AC05-00OR22725
- Resource Type:
- Accepted Manuscript
- Journal Name:
- Energy Policy
- Additional Journal Information:
- Journal Volume: 121; Journal Issue: C; Journal ID: ISSN 0301-4215
- Publisher:
- Elsevier
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 29 ENERGY PLANNING, POLICY, AND ECONOMY; China's vehicle market; Policy analysis; Quantitative model; Corporate average fuel consumption; Plug-in electric vehicle; Industry profits
Citation Formats
Ou, Shiqi, Lin, Zhenhong, Qi, Liang, Li, Jie, He, Xin, and Przesmitzki, Steven. The dual-credit policy: Quantifying the policy impact on plug-in electric vehicle sales and industry profits in China. United States: N. p., 2018.
Web. doi:10.1016/j.enpol.2018.06.017.
Ou, Shiqi, Lin, Zhenhong, Qi, Liang, Li, Jie, He, Xin, & Przesmitzki, Steven. The dual-credit policy: Quantifying the policy impact on plug-in electric vehicle sales and industry profits in China. United States. https://doi.org/10.1016/j.enpol.2018.06.017
Ou, Shiqi, Lin, Zhenhong, Qi, Liang, Li, Jie, He, Xin, and Przesmitzki, Steven. Mon .
"The dual-credit policy: Quantifying the policy impact on plug-in electric vehicle sales and industry profits in China". United States. https://doi.org/10.1016/j.enpol.2018.06.017. https://www.osti.gov/servlets/purl/1470890.
@article{osti_1470890,
title = {The dual-credit policy: Quantifying the policy impact on plug-in electric vehicle sales and industry profits in China},
author = {Ou, Shiqi and Lin, Zhenhong and Qi, Liang and Li, Jie and He, Xin and Przesmitzki, Steven},
abstractNote = {We report that the Passenger Cars Corporate Average Fuel Consumption and New Energy Vehicle Credit Regulation (dual-credit policy) was enacted by the Chinese government in 2017 to stimulate the fuel-efficient and electrification technologies in the China's passenger vehicle market. Here, this study summarizes the dual-credit policy and develops the New Energy and Oil Consumption Credits Model to quantify the impacts of this policy on consumer choices and industry profits, where internal subsidies as decision variables are used to represent industry responses to the policy. Scenarios in 2016–2020 are simulated and discussed. Key findings from the model results include: (1) the Corporate Average Fuel Consumption rules alone may stimulate more plug-in electric vehicle (PEV) sales than the dual-credit policy; however, (2) the dual-credit policy could stimulate more battery electric vehicles (BEVs) in market, compared to other policy scenarios; (3) the industry could “lose” approximately $2122/vehicle by 2020 under the dual-credit policy; (4) battery electric sedans with a range greater than 250 km and plug-in hybrid SUVs could be popular under the dual-credit policy; (5) credit allocations for BEVs in the dual-credit policy can influence the PEV production; and (6) reduction of the fuel-efficient technology costs helps to minimize profit losses impacted by the policy.},
doi = {10.1016/j.enpol.2018.06.017},
journal = {Energy Policy},
number = C,
volume = 121,
place = {United States},
year = {Mon Aug 06 00:00:00 EDT 2018},
month = {Mon Aug 06 00:00:00 EDT 2018}
}
Web of Science
Works referenced in this record:
Scenario analysis of lightweight and electric-drive vehicle market penetration in the long-term and impact on the light-duty vehicle fleet
journal, October 2017
- González Palencia, Juan C.; Otsuka, Yuki; Araki, Mikiya
- Applied Energy, Vol. 204
Carbon emissions quotas in the Chinese road transport sector: A carbon trading perspective
journal, July 2017
- Han, Rong; Yu, Bi-Ying; Tang, Bao-Jun
- Energy Policy, Vol. 106
Estimation of China’s alternative policies of automotive fuels – A perspective of oil dependence
journal, September 2017
- Jiao, Jianling; Zuo, Feifei; Li, Lanlan
- Journal of Cleaner Production, Vol. 161
Optimizing and Diversifying Electric Vehicle Driving Range for U.S. Drivers
journal, November 2014
- Lin, Zhenhong
- Transportation Science, Vol. 48, Issue 4
Estimation of vehicle home parking availability in China and quantification of its potential impacts on plug-in electric vehicle ownership cost
journal, September 2018
- Ou, Shiqi; Lin, Zhenhong; He, Xin
- Transport Policy, Vol. 68
A comparison of oil supply risks in EU, US, Japan, China and India under different climate scenarios
journal, January 2016
- van Moerkerk, Mike; Crijns-Graus, Wina
- Energy Policy, Vol. 88
China's electric car surge
journal, March 2017
- Wang, Yunshi; Sperling, Daniel; Tal, Gil
- Energy Policy, Vol. 102
From government to market and from producer to consumer: Transition of policy mix towards clean mobility in China
journal, September 2016
- Xu, Lei; Su, Jun
- Energy Policy, Vol. 96
Plug-in electric vehicle market penetration and incentives: a global review
journal, October 2014
- Zhou, Yan; Wang, Michael; Hao, Han
- Mitigation and Adaptation Strategies for Global Change, Vol. 20, Issue 5
Works referencing / citing this record:
Technology development for electric vehicles under new energy vehicle credit regulation in China: scenarios through 2030
journal, November 2018
- Zhao, Fuquan; Chen, Kangda; Hao, Han
- Clean Technologies and Environmental Policy, Vol. 21, Issue 2
Intensity and daily pattern of passenger vehicle use by region and class in China: estimation and implications for energy use and electrification
journal, October 2019
- Ou, Shiqi; Yu, Rujie; Lin, Zhenhong
- Mitigation and Adaptation Strategies for Global Change, Vol. 25, Issue 3
China and the Reshaping of the Auto Industry: A Dynamic Capabilities Perspective
journal, March 2019
- Teece, David J.
- Management and Organization Review, Vol. 15, Issue 1
China’s Electric Vehicle Deployment: Energy and Greenhouse Gas Emission Impacts
journal, November 2018
- Liu, Feiqi; Zhao, Fuquan; Liu, Zongwei
- Energies, Vol. 11, Issue 12
A hybrid multi‐output‐predictive modelling based NSGA II approach for dimensions design optimization of battery pack module for electric vehicles
journal, January 2020
- Ruhatiya, Chaitanya; Gia Bao, Pham N.; Quan, Tram L.
- Energy Storage, Vol. 2, Issue 3