Chen, T., Zheng, X.-X., Jia, F. orcid.org/0000-0002-9830-121X et al. (1 more author) (2025) Toward mass adoption of electric vehicles: policy optimisation under different infrastructure investment scenarios. International Journal of Production Research. pp. 1-26. ISSN 0020-7543
Abstract
Mass adoption of electric vehicles (EVs) is seen as a key solution for environmental degradation and a low-carbon economy. To promote EV adoption, the government's should choose the most efficient subsidy scheme from three options: a pure purchase subsidy for consumers, a pure infrastructure subsidy for automakers, or a combination of both. This study models the interactions among the government, automakers, and consumers using a Stackelberg game to identify the optimal subsidy structure, considering supply chain structures and infrastructure investments. Our findings show that a pure subsidy is optimal only when the supplier invests in charging infrastructure. However, if the automaker invests in infrastructure, a combination of both subsidies becomes beneficial. The government’s subsidy strategy depends on the adoption target and infrastructure investment costs. A combined policy is optimal when both the target and costs are high; otherwise, a pure subsidy is more cost-effective. Additionally, we find a complementary relationship between government subsidies and competition. Competition within the EV supply chain reduces the need for large subsidies, helping alleviate the government’s financial burden. Finally, while the most cost-effective subsidy scheme may be efficient in reducing costs, it can lead to poor economic performance and lower profits in certain cases.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2025 The Authors. Except as otherwise noted, this author-accepted version of a journal article published in International Journal of Production Research is made available via the University of Sheffield Research Publications and Copyright Policy under the terms of the Creative Commons Attribution 4.0 International License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ |
Keywords: | Supply chain management; subsidies; infrastructure investment; policy optimisation; electric vehicle adoption |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Funding Information: | Funder Grant number ENGINEERING AND PHYSICAL SCIENCE RESEARCH COUNCIL EP/N022289/1 |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 15 Jan 2025 14:55 |
Last Modified: | 16 Jan 2025 11:09 |
Status: | Published online |
Publisher: | Informa UK Limited |
Refereed: | Yes |
Identification Number: | 10.1080/00207543.2024.2446624 |
Sustainable Development Goals: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:221789 |