Equilibrium Analysis of Automobile Market under the Subsidy Recession and Dual Credits Policy  
Author Chang Liu

 
Co-Author(s) Qing-yuan Zhu

 
Abstract Under the combined effect of the subsidy recession and the dual credits policy, this paper firstly, considers how to maximum demand and emission reduction R&D of fuel vehicles, and then analyzes the impact of policies on carbon emission. The study found that: 1) The impact of the credit transaction price on the optimal emission reduction R&D investment is non-linear. When the decline of subsidy is large, the government should set a lower transaction price of credits to incentive R&D investment in emission reduction; 2) The target value of fuel consumption has a non-linear impact on the optimal emission reduction R&D investment and the optimal demand. When the decline of subsidy is large, the government should set a higher target value to increase the demand of new energy vehicles; 3) The dual credits policy will decrease the carbon emission when the subsidy declines. The results of the numerical simulation verify the model and theoretical analysis.

 
Keywords new energy vehicles, subsidy recession, dual credits policy, emission reduction R&D
   
    Article #:  DSBFI23-93
 
Proceedings of 2nd ISSAT International Conference on Data Science in Business, Finance and Industry
January 8-10, 2023 - Da Nang, Vietnam