Research On Manufacturer's Pricing Strategy And Government Subsidy Policy Of Electric Vehicle

With the gradual decline of air quality, air pollution drew international attention. According to investigation statistics, the exhaust emission pollution accounts for a very high share of air pollution. With the increasing of global car ownership and conventional cars' dependence on oil resources, scarcity of oil resources appear to be increasingly significant, which makes the electric vehicle industry become the transport development direction in the future. With the advantages of its low pollution, electric vehicles have made great contributions on improving environment quality and saving oil resources.The development of electric vehicles has just started, in order to promote the rapid development of electric vehicle industry, many countries and governments make and push a number of preferential policies. Governments offer subsidies to electric vehicle buyers, motivation strategy can not only reduce the purchase cost of consumers, can also encourage manufacturers to specialize in the production and sales of electric vehicles. The list of problems with the development of electric vehicle industry is long. Among them, reasonable pricing strategy and subsidy policy is the guarantee of the marketization and industrialization of electric vehicles. This paper mainly studies how producers make the pricing strategy which can maximize the profit, and how the government set the subsidy strategy which can make the social welfare maximizing.The first part is the introduction, mainly introducing the research background, goal and the significance, and expounding in detail the research content, the structure and innovation points of this article.Second, this paper summarizes and reviews current state of research which is closely related to this article concluding the durable goods theory, supply chain management and consumer behavior, the sustainable supply chain and environmental protection technology, and economic development and commercial production of electric vehicle.Third, this paper studies the market demand and environmental impact of electric vehicle considering the level of product updates and government subsidies. Based on the heterogeneous consumers with different buying behaviors, through setting two stages utility model, market demands of different types of consumers are obtained. The effect of product durability, degree of product updates and government subsidies on market demand of electric vehicle is explored further when the government pay close attention to the environmental impact of electric vehicles under the to the influence of the electric car market demand. In the end, through the numerical experiments the relationships between manufacturer's profit and product durability, the level of product updates are discussed.Fourth, the electric vehicle's pricing strategy and government subsidies policy under different market structures are studied. First of all, the introduction of low carbon consumer attention is introduced into the utility model which is set based on different types of consumer's different behaviors. Then, the product's optimal pricing strategy and government subsidies policy in the monopoly setting and duopoly setting are explored respectively. The effects of the low carbon awareness and differential costs on optimal decisions are analyzed further, and the market demand of electric vehicle, environmental impact and social welfare under different market structures are compared.Fifth, the comparison between government subsidy policy and price discount policy in electric vehicle market is studied. Based on consumers'different buying behaviors, after introducing low carbon consumer attention, the consumer utility model under government price discount policy is established. The stackelberg game model is solved using backward induction; the optimal price discount coefficient and pricing strategy under price discount policy are obtained. Then, the analysis and comparison of the optimal decision between the two different are done. Finally through the numerical experiment we compare the environmental impact and social welfare under different government policy further.Sixth, government differential subsidies are analyzed considering the consumer inertia and energy prices. First of all, we segment potential consumers, and then introduce the product's environmental quality, consumer inertia, differential subsidies for different types of consumers, as well as energy prices and other factors into consumer utility model. Then, by solving the stackelberg game model, the optimal pricing strategy maximizing manufacturer's profit and the optimal government subsidy policy maximizing social welfare are obtained. Finally, the condition is gained that government should set differential subsidy for different types of consumers. We further explain the effect of diversification of marketing conditions on social welfare through numerical experimentsChapter 7 summarizes the content of the above research. Several interesting problems for further research are also highlighted.