Can the Dual-Credit Policy Help China's New Energy Vehicle Industry Achieve Corner Overtaking?

The purpose of the dual-credit policy is to promote the healthy and sustainable development of China's new energy vehicle industry. This study took the dual-credit policy as the background, took the new energy vehicle listed companies in the Shanghai and Shenzhen stock markets in China as the research object, and used the difference-in-difference model to verify the impact of the dual-credit policy on the performance of new energy vehicle companies and identify the mechanism behind its role. The study found the following: (1) the dual-credit policy significantly improves the performance of listed new energy vehicle companies, but the marginal utility of the policy will diminish; (2) the impact of the dual-credit policy on the performance of domestic listed new energy vehicle companies is better than that of joint venture listed new energy vehicle companies; (3) the dual-credit policy mainly enhances the competitiveness of listed new energy vehicle companies through the market expectation of enterprises and market competition mechanism; (4) there is heterogeneity in the mechanism of the dual-credit policy for domestic and joint venture new energy vehicles. The research in this paper is helpful for evaluating the economic effect of the dual-credit policy, and it has implications for the healthy and orderly development of the new energy vehicle industry.

Automated summary

This study examines the impact and mechanism of the dual-credit policy on the performance of listed new energy vehicle companies in China. The results show that the policy significantly improves the performance of these companies, with diminishing marginal utility. Domestic listed companies benefit more from the policy compared to joint venture companies. The policy enhances the competitiveness of these companies mainly through market expectations and competition mechanism. The research contributes to evaluating the economic effect of the dual-credit policy and provides implications for the healthy development of the new energy vehicle industry.