Should the Chinese Government increase policy support and economic subsidies for the new energy transportation industry?
DOI:
https://doi.org/10.61173/s81fx667Keywords:
New Energy Vehicles (NEVs), Government Subsidies, Policy Support, Carbon Neutrality, Sustainable DevelopmentAbstract
This study examines the need for, and the impact of, increased policy support and economic subsidies from the Chinese government for the new energy transport industry. Among the implications are the current state of the new energy vehicle (NEV) market, current government policies, and their impact on market growth, technological advancement, and environmental sustainability. Through a comprehensive literature review and a preliminary study of 185 respondents, this study evaluates various hypotheses related to the potential pros and cons of increased government support. The results indicate that government subsidies have received substantial support and have played a positive role in promoting the popularity of new energy vehicles, facilitating the development of the industrial chain, improving energy security and technological competitiveness, and reducing environmental pollution. The study also identified possible adverse effects of reduced subsidies, such as slower infrastructure development and increased market segmentation. The findings emphasize the importance of continued government intervention in promoting sustainable growth of the new energy vehicle industry. The paper concludes with recommendations for policy adjustments to better align with dual-carbon goals and ensure the long-term viability of the industry.
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