From government to market and from producer to consumer: Transition of policy mix towards clean mobility in China

• Published in: Energy policy Vol. 96; pp. 328 - 340
• Main Authors: Xu, Lei, Su, Jun
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.09.2016; Elsevier Science Ltd
• Subjects: China; Consumer behavior; Consumer behaviour; energy; Energy policy; Industrial policy; industry; Innovation; Innovations; issues and policy; Markets; Mobility; New energy vehicle; Orientation; Policy change; Policy instrument; Studies; sustainable technology; technology; Typological analysis; Typology; China; New energy vehicle; Policy change; Typology; Policy instrument; China
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2016.05.038

This paper proposes a new typology that classifies innovation policy instruments into two dimensions: government-selection versus market-selection, and producer-orientation versus consumer-orientation. Such a typology articulates the importance of consumer behavior in the policy design for a transition, and the relevance for the market to select target subjects of policy during the deployment stage of clean technology innovation. We apply this typology to policy instruments of China's new energy vehicle (NEV) industry between 1991 and 2015 in order to explain the industry's rapid growth. The focus of China's policy mix has transited from government-selection to market-selection, and from producer-orientation to consumer-orientation. Other than the new typology, this paper traces the entire history of policy transition within China's NEV industry, and finds the transition to be a result of policy learning, thus contributing to future empirical studies of this industry. •This paper shows the change of China's innovation policy mix for the new energy vehicle industry.•We design a new typology of innovation policy instruments.•China's policy mix has undergone a transition according to the new typology.•The transition explains why new energy vehicles have recently diffused quickly in China.•Rationale and background of such a transition is provided.