Next Article in Journal
A Comparison of Competing Models for Understanding Industrial Organization’s Acceptance of Cloud Services
Next Article in Special Issue
A Supply Chain Coordination Mechanism with Cost Sharing of Corporate Social Responsibility
Previous Article in Journal
Reconstructing Tradition: Heritage Authentication and Tourism-Related Commodification of the Ancient City of Pingyao
Previous Article in Special Issue
Can Environmental Regulations Promote Corporate Environmental Responsibility? Evidence from the Moderated Mediating Effect Model and an Empirical Study in China
Article Menu
Issue 3 (March) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(3), 672; https://doi.org/10.3390/su10030672

Manufacturing Decisions and Government Subsidies for Electric Vehicles in China: A Maximal Social Welfare Perspective

1
College of Transportation and Civil Engineering, Fujian Agriculture and Forestry University, Fuzhou 350002, China
2
School of Economics and Management, Fuzhou University, Fuzhou 350002, China
3
College of Management Engineering, Anhui Polytechnic University, Wuhu 241000, China
4
Departamento de Ingeniería Mecánica y de Materiales (DIMM), Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain
5
School of Business, Ningbo University, Ningbo 315211, China
*
Authors to whom correspondence should be addressed.
Received: 16 January 2018 / Revised: 16 February 2018 / Accepted: 26 February 2018 / Published: 1 March 2018
(This article belongs to the Special Issue Transition from China-Made to China-Innovation )
Full-Text   |   PDF [1442 KB, uploaded 1 March 2018]   |  

Abstract

In order to address challenges in the sustainable development of transportation, economy, and environment, governments of China and conventional automobile manufacturers are extremely concerned about the development of the electric vehicle (EV) manufacturing industry and market. However, owing to the limitations of EVs and the government economic policies on decreasing subsidies in China, many manufacturers are worried about entering the EV market. Given the low consumer preference for EVs, using a leader-follower Stackelberg game model, we investigate the impact of government a subsidy on the optimal production and pricing decisions of an auto manufacturer who could produce both EVs and conventional vehicles. We characterize whether/under what conditions the manufacturer’s decision to offer EV products under government subsidy, whilst increasing its profits (a win-win situation). On the policy side, we delineate how government a subsidy can be set to realize the inherent economic, environmental, and social benefits of EV production (the triple win of EV production). We further investigate the impact of EV manufacturing- and society-related factors on the balance among manufacturer profits, environmental impact and social welfare. This study also finds that the adoption of EVs is not bound to be beneficial for the environment. View Full-Text
Keywords: electric vehicle; China’s subsidy policy; EVs manufacturing decisions; social welfare; environmental impact electric vehicle; China’s subsidy policy; EVs manufacturing decisions; social welfare; environmental impact
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Zheng, X.; Lin, H.; Liu, Z.; Li, D.; Llopis-Albert, C.; Zeng, S. Manufacturing Decisions and Government Subsidies for Electric Vehicles in China: A Maximal Social Welfare Perspective. Sustainability 2018, 10, 672.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top