Supply chain analysis under a price-discount incentive scheme for electric vehicles

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

“…Our paper is closely related to the recent publications by Huang et al (2013) and Luo et al (2014). The effect of a governmental subsidy incentive scheme promoting electric automobiles is investigated in Huang et al (2013), who consider two supply chains: a petroleum-run automobile supply chain and an electric-and-fuel automobile supply chain.…”

“…Luo et al (2014) analytically study an EV supply chain under a price discount incentive scheme that involves a price discount rate and a subsidy ceiling. A Nash bargaining model of a manufacturer and a retailer is constructed to derive the negotiated retail price in their paper, and they also examine the effectiveness of this scheme at stimulating EV sales.…”

“…Huang et al (2013) investigate the impact of a subsidy incentive scheme on two supply chains, which include a fuel automobile supply chain only making gasoline vehicles (GVs) and a supply chain producing both EVs and GVs. Luo et al (2014) analyse an EV supply chain where a manufacturer and a retailer serve heterogeneous consumers with EVs under a government's price discount incentive scheme.…”

Analysis of Supply Chain under Different Subsidy Policies of the Government

“…Previous studies addressed the effects of subsidy policies of the government using game theory [7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22]. Despite the availability of these studies, only a few published articles explored the efficienci-es of subsidy policies of the government using game theory.…”

“…Huang et al (2013) focused on two supply chains (i.e., fuel automobile supply chain, electric-and-fuel automobile supply chain), and examined the effects of subsidy policy of the government on the profits and social welfare of supply chain members [7]. Luo et al (2014) studied an automobile supply chain that consists of a manufacturer and a retailer, and investigated the effects of the government's price-discount incentive scheme on the decision making of supply chain member [9]. Huang et al (2014) explored the effects of the government's scrappage program on the optimal decisions of all players' (i.e., government, manufacturer, and retailer); the results show that a scrappage program with a sufficiently large MSRP cutoff level and proper subsidy can efficiently promote sales [10].…”