The Impact Of Policy And Business Model To Hangzhou’s Alternative Fuel Vehicle’s Social-technical System Innovation

The diffusion of Alternative fuel vehicles is a social system innovation. But after a long time’s development, traditional gasoline vehicle has formed social system "lock-in", which makes it difficult for alternative fuel vehicles to diffuse. This paper analyzes the process of social system innovation with a multi-level perspective and researches the parts of vehicles’social-technical system.Now there are several cities that have launched a series of policies to support alternative fuel vehicle’s innovation and business model innovation. But only a few cities has achieved good results. This paper attempted to analyze why it is hard for alternative fuel vehicles to diffuse? Do policies and business model useful to promote the diffusion of alternative fuel vehicles? Do different policies combinations have different for alternative fuel vehicle’s diffusion?Based on these problems, this paper builds system dynamics model through questionnaire and desk research. After the study, some conclusions are drawn below.First, there is utility gap between alternative fuel vehicle and tradition gasoline vehicle. Without any advantages, consumers would not choose alternative fuel vehicles.Second, when capital subsidy, licensing restriction and road limit are used together, alternative fuel vehicles will have significant diffusion.Third, business model innovation should be based on local situation. Battery exchange business model is mostly welcomed in Hangzhou.Fourth, the length of capital subsidy time will change the result of alternative fuel vehicle’s diffusion result.