Research On Internal And External Financing Strategy Of New Energy Vehicle Supply Chain Under Government Subsidy Decline

With the continuous development of the world economy,countries pay more and more attention to environmental protection and energy security,especially the transportation industry,which has a great impact on the environment and energy.At present,the transportation industry accounts for about 11% of China’s total carbon emissions.Therefore,under the background of carbon peaking and carbon neutralization,developing new energy vehicles(NEVs)is an important direction to realize the low-carbon transformation of the transportation industry.At the same time,in order to encourage the production and use of NEVs,the government has been subsidizing the promotion and application of NEVs since 2009.Government subsidies have played a key role in promoting the development of China’s NEV industry,but they have also brought problems such as excessive financial burden of the government,fraudulent compensation by enterprises and lack of innovation.Therefore,the government decided to adopt a subsidy decline policy for the NEV industry under multiple factors.As one of the high-tech industries,the particularity of input and output of NEV industry is easy to cause liquidity constraints among supply chain members.Since the implementation of the subsidy decline policy,great changes have taken place in the domestic NEV industry,the sales growth of NEVs has obviously slowed down,some NEV manufacturers have difficulties in operating or even closed down,and the shortage of funds for NEV manufacturers has gradually emerged.Under the background of government subsidy decline policy,this paper considers the internal and external financing decision-making of a two-level supply chain composed of upstream NEV manufacturers,which have financial constraints,and downstream NEV retailers,and compares the two financing methods to try to explore the most beneficial financing method for the development of China’s NEV industry.Firstly,considering the internal financing strategy of NEV supply chain,the feasibility of financing from downstream retailers to upstream NEV manufacturers is studied.Through model solving and numerical simulation,this paper analyzes the influence of consumer sensitivity coefficient to price,consumer sensitivity coefficient to research and development(R&D)intensity,government subsidy ratio and automobile wholesale price discount rate on the optimal production decision of NEV manufacturers and retailers.It is found that there is an optimal wholesale price discount rate between NEV manufacturers and retailers,which is θ=0.08.When supply chain members realize internal financing with this discount rate,the R&D efforts of NEV manufacturers and the profits of supply chain members reach the optimal.Besides,when the wholesale price discount rate satisfies 0.08 ≤θ ≤0.1,the effect of government subsidy is better.Secondly,considering the external financing strategy of NEV supply chain,this paper establishes a green financing mechanism between banks and upstream NEV manufacturers,and analyze the influence of consumer sensitivity coefficient to price,consumer sensitivity coefficient to R&D intensity,government subsidy ratio and bank loan interest rate on the optimal production decision of NEV manufacturers and retailers.It is found that the profits of supply chain members are inversely proportional to the bank loan interest rate,and compared with the change range of retailers’ optimal decision and profit with the change of bank loan interest rate,the change range of NEV manufacturers’ optimal decision and profit with the change of bank loan interest rate are larger.Besides,compared with the internal financing mechanism,with the change of government subsidy ratio,the change of optimal decision and profit of supply chain members in external financing mechanism are smaller.Finally,the equilibrium decision-making under the internal and external financing mechanisms of the NEV supply chain is compared and analyzed.It is found that the R&D efforts of NEV manufacturers,manufacturers’ profit and retailers’ profit under internal financing mechanism are higher than those under external financing mechanism,and the decline of government subsidies has a greater impact on the optimal decision-making and profit of supply chain members under the internal financing mechanism.At the same time,combined with the research conclusions of this paper and the financing status of China’s NEV industry,this paper puts forward relevant policy suggestions from three aspects: government policy,bank financial innovation and internal cooperation of supply chain.