A study on the policy framework of market cultivation in the new energy automobile industry in China

Abstract

At present, energy exhaustion and environment pollution has attracted more and more attention, which given birth to the new energy automobiles. However, as the emerging industry oriented to energy conservation and emissions reduction, new energy automobile industry encounters obstruction from technology input and externality of economy in the industry development and marketization. The immature technology and slow market promotion are the two bottlenecks in its development among China. It is an urgent problem already that how to promote new energy automobile industry. This paper analyzes the market failure and system failure among the new energy industry from the perspective of the theory of equilibrium, theory of evolution, and finally two solution ideas are gained which emphasizes the policy framework of market cultivation in new energy automobile industry.