Mission-oriented R&I policies, in-depth case studies
New energy vehicles : case study report - Study
The New Energy Vehicles (NEV) policy in China is an example of a large scale systemic and transformative mission. It has been an attempt by the Chinese government to address several challenges that the country has been facing at the same: energy security, pollution and environmental challenges, and economic and technological upgrading. It has been implemented in a strongly top-down manner with a relatively comprehensive policy mix covering both supply-side polices and demand-side polices. While considerable progress has been achieved, the overall mission targets of the policy have not yet been... met. Yet, China has recently become the largest NEV market in the world. Challenges of the policy have been related to the general backwardness of Chinese car industry, limited connections to foreign technology development and lack of enthusiasm from consumers to buy NEVs and carmakers to produce NEVs. The Chinese NEV case also highlights the complexity and potential contradictions that the objectives of such large-scale missions may entail. In the NEV case, two of the original objectives may in practice be conflicting: achieving the overall mission (large-scale penetration of NEVs) may lead to opposite (negative) impacts in terms of environmental objectives (i.e. lead to increase in pollution and CO2 emissions).