Research on the diffusion of electric vehicles based on dynamic games under the influence of environmental regulations

Abstract

Environmental regulation policies and market demand are important factors driving the proliferation of electric vehicles. By introducing prospect theory, this study constructs the production decision model of automobile manufacturers based on evolutionary game and networked evolutionary game from both micro and macro perspectives. The results of theoretical and numerical simulation analysis show that: (1) increasing subsidies, carbon taxes, and market demand for electric vehicles are all conducive to the evolution of ‘ideal state’ of making all manufacturers produce electric vehicles; (2) when the mixed environmental regulation is adopted, the diffusion rate of electric vehicles is more obvious. Only when the carbon tax reaches a certain threshold, it can achieve full diffusion; (3) increasing the demand for electric vehicles can significantly promote the diffusion of electric vehicle production strategies among manufacturers.