Study Of The Influence Of The Purchase Tax Exemption On New Energy Vehicles Policy On The Sales Of Passenger Car Company

Listed as strategic emerging industry,the new energy vehicles(normally briefed as “NEV”)industry,which received massive attention across the society,is now the way of future of automobile industry.The usage of new energy in automobile industry could not only ameliorate the market energy consumption structure effectively,but also remit the sustainable energy resource problem faced by human society.On the other hand,while environmental problems towered world-widely,the usage of new energy resource could play a significant role in restoring the ecological environment.The development of global new energy market provides a great opportunity for China to promote the NEV industry and to cross over current energy shortage.In the past ten years,the market share of new NEV has reached a significant point in Chinese market.The sales volume of NEV across China is leading the world.Such rapid development of NEV industry in China is inseparable from the continuous support provided by national incentive policies.The promulgation frequency of such policies reached its culmination between 2016 and 2017,and recently,after a decade of radical support,the political support starts to retreat from the new energy automobile market.As the feedback of such retreat,the willingness to producing NEV decreased among the market,and problems like policy subsidy defraudation was revealed.In 2016,a famous debate between Lin Yifu and Zhang Weiying ignited an argument across the academia about the necessity of industrial policy.According to the viewpoint of industrial organization,industrial policies can effectively regulate the market performance.Enterprises will then adjust their own behavior to follow the new market structure.The accumulation of such adjustments will then alter the market behavior,and finally shift the market performance.Thus,the effectiveness of industrial policy could be measured through market performance.However,from the perspective of management,based on corporate behavior theory,corporate behavior is affected by many factors in the real world and many of these factors could hinder the implementation of incentive policies.The effective supply theory and the policy spillover effects also suggest that the irrational use of industrial policies will burden the orderly competition of the market,which stands against the target of such policies.Based on such background,this paper first will summarize China's new energy automobile industry incentive policies.Then,by choosing the Purchase Tax Exemption on New Energy Vehicles Policy(hereinafter,“the Tax Exemption Policy for NEV”)as representative,this paper will briefly analyze the market impact of the Tax Exemption Policy for NEV.After a brief analysis,this paper will use the empirical model to explore the relationship between industrial policy,sales volume of NEVs,product structure and corporate policy subsidy defraudation behavior,aiming to analyze the impact of the Tax Exemption Policy for NEV on specific enterprise.The empirical results show that: First of all,the Catalogue of New Energy Vehicles Exempt from Vehicle Purchase Tax(hereinafter,“the Tax Free Catalogue”)can effectively promote the sales of new energy vehicles.Secondly,it takes nearly a half of year for the Tax Free Catalogue to take effect in the market after its ordination.Starting from this time,the effect of the policy would be strengthened with the extension of the policy's effective time.Thirdly,vehicle producers will actively expand their product scale after the NEV model they produced are listed in the Tax Free Catalogue and companies listed in the Tax-Free Catalogue will show higher motivation to transform its product structure to promote the sale of the listed NEV models it produced.Finally,the Tax Exemption Policy for NEV has,to a certain extent,spurred vehicle producers to conduct policy subsidy defraudation.