Subsidy scheme or price discount scheme? Mass adoption of electric vehicles under different market structures

Shao, Lulu; Yang, Jun; Min, Zhang

doi:10.1016/j.ejor.2017.04.030

Cited by 200 publications

(87 citation statements)

References 35 publications

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“…This study considered a two-tiered automotive supply chain consisting of a single supplier and a single dealer, the automaker as the leader in the supply chain, the dealer as the follower, with the automaker producing both traditional vehicles and NEVs. Assume that the unit production costs of traditional vehicles and NEVs are c t and c n , with c n > c t [15]. The ex-factory prices of the two types of products are w t and w n .…”

Section: Problem Description and Parameter Hypothesesmentioning

confidence: 99%

“…The estimated value of traditional vehicles for green consumers is λ. Green consumers who buy NEVs receive a higher utility from low carbon, so their valuation of NEVs is (1 + θ)λ [15]. Ordinary consumers do not consider the impact of low carbon, so their valuation of NEVs is equivalent to their valuation of traditional vehicles, thus they have no preference for NEVs.…”

Section: Problem Description and Parameter Hypothesesmentioning

confidence: 99%

“…These studies have analyzed the interaction mechanism between consumers and supply chain operation decisions by portraying how consumers' preferences for low carbon lead to a market reaction for low carbon, and they have further proposed a low-carbon supply-chain decision model and method [9][10][11]. In response to the rise of the NEV market, the relationship between consumers' preferences for low carbon and NEV market acceptance, government subsidies for NEVs, and the impact of low carbon preferences on NEV supply chain decisions, have attracted the interest of some scholars [8,[12][13][14][15].…”

Section: Introductionmentioning

confidence: 99%

“…in revenue sharing contracts. According to the theory of revenue sharing contracts, assume p j * n = p n , p j * t = p t , then we can obtain the ex-factory prices w these results into Equations(15) and(16) results in the profits for automobile manufacturers and dealers,…”

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confidence: 99%

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Supply-Chain Pricing and Coordination for New Energy Vehicles Considering Heterogeneity in Consumers’ Low Carbon Preference

2020

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Given consumers' willingness to pay different prices for new energy vehicles (NEVs) and traditional vehicles, we construct a utility model of ordinary and green consumers. We establish pricing game models for centralized and decentralized decisions in an NEV's supply chain in order to study the impact of changes in consumers' low carbon preference heterogeneity on supply chain pricing and member profit. The results show that consumers' low carbon preferences and the ratio of green consumers increases with the ex-factory and selling prices of NEVs. An increase in the percentage of green consumers under centralized decision-making will reduce the total profit of the supply chain. Manufacturers' profits under decentralized decision-making are greater than the dealers' profits, and the sum of the two members' profits under decentralized decision-making is less than the total profit of the supply chain under centralized decision-making. We design a revenue-sharing contract to eliminate the double marginal effect.

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Section: Problem Description and Parameter Hypothesesmentioning

confidence: 99%

Section: Problem Description and Parameter Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Supply-Chain Pricing and Coordination for New Energy Vehicles Considering Heterogeneity in Consumers’ Low Carbon Preference

2020

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“…Selected references Impact of integrating PEVs into the power system Parks et al (2007), Lemoine et al (2008), Samaras and Meisterling (2008), Stephan and Sullivan (2008), Denholm (2009), Sioshansi et al (2010), Wang et al (2010), Sioshansi (2012), and Kahlen et al (2018) Market diffusion of electric vehicles: Barriers in front of the mass adoption Struben and Sterman (2008), Luo et al (2014), Cohen et al (2015), Lim et al (2015), Gnann and Plotz (2015), He et al (2017), Kuppusamy et al (2017), and Shao et al (2017) Optimal deployment and operation of refueling infrastructure Capar et al (2015), Lim and Kuby (2010), Raviv (2012), He et al (2013), Mak et al (2013), Nurre et al (2014), Avci et al (2015), Chung and Kwon (2015), Hung and Michailidis (2015), Yang and Sun (2015), Zhao and Ma (2016), and Yildiz et al (2016) Vehicle routing and scheduling problem for electric (and other alternative fuel) vehicles with limited ranges Boyaci et al (2015), Goeke and Scheider (2015), Hung and Michailidis (2015), Doppstadt et al (2016), Hiermann et al (2016), Pimenta et al (2016), Wen et al (2016), and Schiffer and Walther (2017) Open research questions…”

Section: Research Topicsmentioning

confidence: 99%

Electric Power Industry: Operational and Public Policy Challenges and Opportunities

Parker

Tan

Kazan

2019

Production and Operations Management

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The electric power industry is undergoing dramatic change driven by rapid technological transformation, concern over climate change, and evolving market structures. As a result, there is a need for new models to help the industry better utilize resources in a time of increasing uncertainty and to help government policy makers better understand the impacts of their regulatory decisions. We provide a structured review of the operations research and management science literatures to describe the current operational and policy issues in the electric power industry, with a particular focus on issues surrounding electricity market design, renewable integration, effects of climate policy on electric power infrastructure, rise of electric powered vehicles, energy storage, and the growing interdependence between natural gas and electric power sectors. We identify the current research frontier and classify the existing research into clusters with respect to managerial issues addressed. We offer a forecast for where the electric power industry is going and describe some important public policy issues. Finally, we highlight research opportunities and discuss how the management science community can contribute by considering the interaction between operational considerations and electric power policy.

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Optimal subsidy policy for new energy vehicles based on the influence of multiple factors and consumers' green preference

Wang,

Zhang,

Zhu

2024

Manage Decis Econ

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Policies concerning subsidies for new energy vehicles and consumers' environmental preferences significantly impact the sales of such vehicles. To investigate the correlation between sales and subsidies or consumers' environmental preferences and to devise optimal subsidy strategies, two Stackelberg game models are constructed based on both monopoly and duopoly markets, with solutions derived for Nash equilibrium points. In order to refine the strategy for subsidy adjustments, two dynamic adjustment models considering bounded rationality are established. Additionally, the process of adjusting subsidies towards Nash equilibrium points is analyzed. Simulations, utilizing actual research data, are performed to assess China's current adjustment strategies. The findings reveal a substitution relationship between consumers' environmental preferences and subsidies. Furthermore, optimal subsidy levels and bounded rational subsidy adjustment strategies are identified. Governments should thoroughly consider consumers' environmental preferences when refining subsidy policies, as it is a crucial factor influencing the development of the new energy vehicle industry.

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Subsidy scheme or price discount scheme? Mass adoption of electric vehicles under different market structures

Cited by 200 publications

References 35 publications

Supply-Chain Pricing and Coordination for New Energy Vehicles Considering Heterogeneity in Consumers’ Low Carbon Preference

Supply-Chain Pricing and Coordination for New Energy Vehicles Considering Heterogeneity in Consumers’ Low Carbon Preference

Electric Power Industry: Operational and Public Policy Challenges and Opportunities

Optimal subsidy policy for new energy vehicles based on the influence of multiple factors and consumers' green preference

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