Empirical Study on the Effect of China’s Fiscal Policy in New Energy Vehicles Industry

Bo ZHANG1, Yaning LIU2

1Business School, China University of Political Science and Law, Beijing, 100088, CHINA

2Langfang Branch, Hebei University of Technology, Langfang, 065000, CHINA

Abstract: New energy vehicles are the development direction of automobile industry in the future, and fiscal policy is the main policy tool to promote the industry development. In recent years, China takes developing new energy vehicles as national strategy and promotes the industry development with fiscal policy. Taking the new energy vehicles industry as the breakthrough point, this paper makes analysis on China’s fiscal policy in new energy vehicles industry and measures the fiscal policy effect with Hotelling's model of spatial competition. The results show that fiscal policy has played an important role in reducing the sales price and promoting the application of new energy vehicles; the demonstration of public sector’s application is obvious; the technology level of new energy vehicles has a significant impact on the application and popularization. At last, this paper puts forward policy recommendations for China. Those are government should continue to play the effect of fiscal policy, and increase support for consumer purchase, enterprise’s technology research and infrastructure construction.

Keywords: New energy vehicles industry; Fiscal policy; Effect measure; Hotelling's model of spatial competition