Do dual subsidy and vehicle manufacturer subsidy strategies generate optimal government net income?

Under both high and low regulatory cost scenarios, the dual subsidy (bm) and vehicle manufacturer subsidy (m) strategies generate optimal government net income when subsidy values are appropriately calibrated.

What is the new energy vehicle supply chain?

Humanities and Social Sciences Communications 12, Article number: 748 (2025) Cite this article Amid global efforts to achieve carbon neutrality and promote circular economy, the new energy vehicle (NEV) supply chain has emerged as a critical focus of industrial policy optimization.

How does the government subsidy affect revenue from government regulation?

As the government subsidy increases, the net revenue from government regulation under the m-strategy and bm-strategy increases gradually and then begins to decline after reaching a certain point, while the net revenue from government regulation under the b-strategy declines slowly as the government subsidy increases.

How does a government subsidy affect consumers?

The government’s increased subsidy not only enhances consumers’ purchasing utility, but also expands the consumer market and attracts more consumers to make purchases, thus contributing to the realization of a larger CS.

Which subsidy strategy generates the highest net revenue?

Both the dual-subsidy strategy (bm) and the subsidy-only strategy (m) generate the highest net government revenues at both high and low regulatory costs, but the optimal value of the subsidy needs to be found. Above or below this optimal value will affect the government’s net revenue.

Which subsidy strategy is most effective?

Of the three subsidy strategies-subsidizing only the battery manufacturer, subsidizing only the NEV manufacturer, and subsidizing both at the same time (i.e., the dual-subsidy strategy, or bm-strategy)-the dual-subsidy strategy has proven to be the most effective.