Research Of Driving Factors Of Electric Vehicle Charging Infrastructure Investment

In recent years, with the acceleration of economy and urbanization development, the production volume and quantity of the automobile is developing rapidly. Automobile industry has become an indispensable pillar industry in the development of national economy in China. However, the environmental problems accompanied are ignorable. The air pollution reminds the necessity of environmental protection and electric vehicles have come into being. Since that, the Chinese government has given a number of policies to promote the industrialization of electric vehicles, such as:the purchasing subsidy, no traffic ban every week, an independent license-plate lottery pool etc. Nevertheless, since there are so many doubts around the new industry, the development of electric vehicles is not optimistic. By then, electric vehicle leasing industry has emerged. Consumers can lease the electric vehicles by days or even by hours, which helps to gain more knowledge about the vehicles and dispel doubts about them and furthermore promote the industrial development.Among the doubts of consumers, the most obvious one is the fact that it’s not easy to find a charging station or a charging pile if needed. Only if the charging problems solved, would the industry develop. In Chapter3 of this dissertation, the function of government subsidy is discussed from the aspect of game between enterprises, game between government and enterprises, game between consumers and enterprises. In fact, the investment to charging infrastructure is shared by government and enterprises and the part government takes is reflected as the form of subsidy to enterprise. Yet the method government uses to determine the subsidy rate is not given. So this dissertation is to analyze the reasonable rate of subsidy to charging infrastructure in the electric vehicle leasing industry, providing theoretical support for policy making.The research is based on the net present value model but not restrict to that. Considering the different economic attributes to the equity investment, the required rate of return is different. On the basis of that, a revised net present value model is used to analyze in order to reach breakeven in expected years, on what level is the minimum of the subsidy of charging infrastructure. Only if the enterprises think they can break even in certain acceptable years, would they be willing to invest their money to the electric vehicle leasing industry. On the basis of the revised net present value model, a case study is conducted so that to get statistics needed. Combining the model and statistics, it turns out that the subsidy rate has to be no lower than 31% as a motivation for the case company to invest in the electric vehicle leasing industry. In fact, the rate calculated theoretically is really close to the actual data and it proves that the research method of this paper has certain practical significance, providing theoretical basis for the government to formulate the subsidy policy.