The effects of public subsidies on emerging industry: An agent-based model of the electric vehicle industry

Sun, Xun; Liu, Xiaoling; Wang, Yun; Yuan, Fang

doi:10.1016/j.techfore.2018.12.013

Cited by 91 publications

(37 citation statements)

References 52 publications

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“…This result is consistent with existing literatures. For example, Horbach et al [37] found that consumer subsidies can promote electrical vehicle enterprises' innovation in Germany, and Sun et al [38] found that purchase subsidy has stimulated the technological breakthrough of electric vehicles in the USA. Purchase subsidy plays a key role in correcting innovation externalities, and may provide more opportunities for NEV enterprises to benefit from innovation [12].…”

Section: Did Estimationmentioning

confidence: 99%

The Impact of Purchase Subsidy on Enterprises’ R&D Efforts: Evidence from China’s New Energy Vehicle Industry

et al. 2020

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Purchase subsidy has been adopted to accelerate the diffusion of New Energy Vehicles (NEVs) in China. With a Multi-stage Difference-in-Differences (DID) method, this research investigates the impact of purchase subsidy on Research and Development (R&D) efforts of NEV enterprises. The results indicate that purchase subsidy for NEVs has a positive and significant impact on R&D efforts of NEV enterprises. The impact increases when the purchase subsidy rate decreases. When considering the influences of government procurement and exemption on purchase tax, the positive impact of purchase subsidy still remains significant. The policy implications are that the purchase subsidy rate should be reduced, and stricter technological requirements should be set to couple with the purchase subsidy.

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Section: Did Estimationmentioning

confidence: 99%

The Impact of Purchase Subsidy on Enterprises’ R&D Efforts: Evidence from China’s New Energy Vehicle Industry

et al. 2020

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“…For example, around the year 2000, some Indian government policies that focused on the use of cleaner fuels did reduce vehicle emissions [14,15]. During 2009-2010, the Chinese government issued a series of new energy vehicle industry subsidy policies, which effectively stimulated the production and consumption of NEVs [16]. The resulting discussion and research on the effectiveness of new energy vehicle subsidy policies have received widespread attention [17].…”

Section: Introductionmentioning

confidence: 99%

Can the New Energy Vehicle Pilot Policy Achieve Green Innovation and Emission Reduction?—A Difference-in-Differences Analysis on the Evaluation of China’s New Energy Fiscal Subsidy Policy

2021

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Whether the new energy vehicle pilot policy (NEVPP) can achieve green innovation and emission reduction is an important exploration for China to achieve green and sustainable development. This research aims to empirically investigate the impact, impact mechanism, and heterogeneity characteristics of the NEVPP on urban green innovation and emission reduction based on panel data from 281 cities in China from 2004 to 2017, using difference-in-differences (DID) methods and fixed effect (FE) models. The results show that the NEVPP significantly reduces the carbon dioxide emissions of the pilot cities but significantly inhibits the green innovation, and the results are robust to the placebo test, propensity score matching DID (PSM-DID) test, instrumental variable (IV) estimation, emissions trading system (ETS), and Carbon-ETS interference test, and change of the dependent variable. In addition, further studies have shown that the NEVPP’s emission reduction effects are mainly achieved by reducing energy consumption, promoting technological innovation, and adjusting industrial structure. Moreover, we found that the NEVPP performed better in the regions where the level of economic development is high, the local government has a good relationship with the market, and the level of non-state economic development is high. In general, our research results show that the NEVPP has achieved innovation and emission reduction policy effects in China, but it is also accompanied by an inhibitory effect on green technological innovation.

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“…Despite the major progress that the ABM community has made since Holland and Miller (1991), Epstein and Axtell (1996), and Bonabeau (2002) published their seminal works and the numerous ABM applications in innovation management that are based on sound empirical data and provide useful results (e.g., Kangur et al 2017;Stummer et al 2015;Sun et al 2019;Wolf et al 2015), there remains substantial research to be done in the application of ABM to new product diffusion. For example, as most ABM approaches in the field of innovation management involve agents that represent humans, a particular challenge lies in quantifying, calibrating, and justifying soft factors driving the behavior of their real-world counterparts, such as occasionally irrational behavior and subjective choices (Bonabeau 2002).…”

Section: Outlook To Further Researchmentioning

confidence: 99%

Agent‐based modeling of new product market diffusion: an overview of strengths and criticisms

Rand

Stummer

2021

Ann Oper Res

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Market diffusion of new products is driven by the actions and reactions of consumers, distributors, competitors, and other stakeholders, all of whom can be heterogeneous in their individual characteristics, attitudes, needs, and objectives. These actors may also interact with others in various ways (e.g., through word of mouth or social influence). Thus, a typical consumer market constitutes a complex system whose behavior is difficult to foresee because stochastic impulses may give rise to complex emergent patterns of system reactions over time. Agent-based modeling, a relatively novel approach to understanding complex systems, is well equipped to deal with this complexity and, therefore, may serve as a valuable tool for both researchers studying particular market effects and practitioners seeking decision support for determining features of products under development or the appropriate combination of measures to accelerate product diffusion in a market. This paper provides an overview of the strengths and criticisms of such tools. It aims to encourage researchers in the field of innovation management, as well as practitioners, to consider agent-based modeling and simulation as a method for gaining deeper insights into market behavior and making better-informed decisions.

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The effects of public subsidies on emerging industry: An agent-based model of the electric vehicle industry

Cited by 91 publications

References 52 publications

The Impact of Purchase Subsidy on Enterprises’ R&D Efforts: Evidence from China’s New Energy Vehicle Industry

The Impact of Purchase Subsidy on Enterprises’ R&D Efforts: Evidence from China’s New Energy Vehicle Industry

Can the New Energy Vehicle Pilot Policy Achieve Green Innovation and Emission Reduction?—A Difference-in-Differences Analysis on the Evaluation of China’s New Energy Fiscal Subsidy Policy

Agent‐based modeling of new product market diffusion: an overview of strengths and criticisms

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