Proceedings of 2024 4th International Conference on Public Management and Big Data Analysis (PMBDA 2024)

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Local Subsidies, Local Protectionism and Market Concentration in China’s New Energy Vehicle Industry

Authors
Jiawen Fu1, *, Chen Wang2
1School of Economics, Huazhong University of Science and Technology, Wuhan, China
2School of Accounting, Central University of Finance and Economics, Beijing, China
*Corresponding author. Email: wssjfjw@126.com
Corresponding Author
Jiawen Fu
Available Online 28 February 2025.
DOI
10.2991/978-94-6463-656-7_23How to use a DOI?
Keywords
New energy vehicle; Local subsidy; Local protectionism; Market concentration
Abstract

Local subsidies are financial incentives offered by local governments to promote new energy vehicle (NEV) adoption within their jurisdictions. In this study, we collect data from 270 Chinese cities between 2016 and 2019, and construct a two-way fixed-effect model to explore the impact of local subsidies on the market concentration ratio of China’s NEV industry. We find that local subsidies significantly increase the market concentration ratio of China’s NEV industry, with every 10,000 yuan increase in the subsidy standard leading to an 8% increase in the market concentration of the city’s NEV market. Through a mechanism analysis, we further find that it is local protectionism embodied in local subsidy policies that leads to market concentration, while local subsidies per se do not affect market structure. These results have important implications for formulating and improving policies for the NEV industry.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of 2024 4th International Conference on Public Management and Big Data Analysis (PMBDA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
28 February 2025
ISBN
978-94-6463-656-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-656-7_23How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jiawen Fu
AU  - Chen Wang
PY  - 2025
DA  - 2025/02/28
TI  - Local Subsidies, Local Protectionism and Market Concentration in China’s New Energy Vehicle Industry
BT  - Proceedings of 2024 4th International Conference on Public Management and Big Data Analysis (PMBDA 2024)
PB  - Atlantis Press
SP  - 231
EP  - 239
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-656-7_23
DO  - 10.2991/978-94-6463-656-7_23
ID  - Fu2025
ER  -