Improving the efficiency of subsidy policy to better promote R&D investment in new energy vehicles (NEVs) is of great strategic importance for reducing greenhouse gas emissions and achieving sustainable development. Using the technology adoption life cycle theory, this paper proposes a tri-level programming model among a government, a NEVs manufacturer and customers to investigate the NEVs manufacturer's R&D investment strategies, the government's purchase subsidy policies, and customers' purchasing decisions. Through theoretical and numerical analysis, it is found that when the manufacturer is to maximize the sales, it commits R&D investment which maximizes sales of NEVs, or its entire R&D investment capital. When the manufacturer is to maximize its profit, it commits R&D investment which maximizes its profit, or makes the sales constraint satisfied. Purchase subsidy can raise the sales of NEVs, but cannot increase manufacturer's R&D investment, or even have a crowding-out effect on its R&D investment. These findings will help government improve the efficiency of purchase subsidy to better support the development of the NEVs industry.
R&D investment in new energy vehicles with purchase subsidy based on technology adoption life cycle and customers’ choice behaviour
IET Intelligent Transport Systems ; 14 , 11 ; 1371-1377
2020-09-02
7 pages
Article (Journal)
Electronic Resource
English
research and development management , automobile industry , customers choice behaviour , profit maximization , energy vehicles , NEV sales , technology adoption life cycle theory , government policies , greenhouse gas emissions , environmental factors , NEV industry , purchasing , investment , tri-level programming model , NEV customers , sustainable development , consumer behaviour , government purchase subsidy , three-stage programming model , air pollution , NEV manufacturer , R&D investment capital
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