Policy Synergies and Market Dynamics in Green Vehicle Adoption: A Game-Theoretic Framework

The automotive industry's transition toward electric vehicles (EVs) is currently shaped by a complex interplay of regulatory incentives and infrastructural readiness. In China, for instance, the introduction of dual-credit policies, which target manufacturers for high-performance new energy vehicle (NEV) production and subsidies for charging infrastructure operators, has been a key driver. However, the effectiveness of these measures is not linear; the analysis suggests that the combined effect of these policies is greater than the sum of their individual impacts, leading to significant synergistic outcomes in market adoption and technological deployment.

This research developed a Stackelberg game model to integrate government actors, EV and fuel vehicle manufacturers, charging operators, and consumer green preferences. The model demonstrates that the interplay between dual-credit pricing mechanisms and infrastructure subsidies significantly influences corporate production strategies and technological investment decisions. Specifically, the analysis reveals that while dual-credit policies influence manufacturers' decisions regarding product range and features, the charging infrastructure subsidies have a pronounced effect on shifting the focus of subsidies from the vehicle product end to the service and infrastructure operations end.

Crucially, the study highlights the role of consumer green preferences as a dynamic element in this game. Higher levels of consumer environmental awareness and preference for low-carbon consumption are shown to generate higher profitability for manufacturers under the dual-credit framework. Furthermore, stronger consumer preferences incentivize market providers to offer higher service levels for charging facilities, creating a positive feedback loop that accelerates the deployment of necessary infrastructure.

From a strategic intelligence perspective, this research suggests that policymakers should consider coupling demand-side signals with supply-side regulations. Instead of solely focusing on direct production subsidies, a more effective strategy involves creating integrated policies that address both manufacturing incentives and infrastructure deployment needs. For investors and corporate strategists, this implies that anticipating shifts in consumer sentiment and understanding the interaction between policy levers and market responses is vital for optimizing capital allocation in the green technology sector. The findings underscore that successful decarbonization strategies in the transport sector require a holistic approach that aligns policy incentives with infrastructural realities and evolving consumer values.