Dual-Credit Policy of new energy automobile at China : inhibiting scale or intermediary of innovation?

The implementation of Dual-Credit Policy on April 1, 2018 is a new attempt to promote the development of the new energy vehicle market in China. Since the implementation of the policy, on the one hand, the new energy automobile industry has developed rapidly, on the other hand, many automobile companies are in trouble. Based on the data of Chinese passenger vehicle listed enterprises from 2012 to 2019, this paper analyzes the influence of Dual-Credit Policy on the enterprise level by using difference in difference model. Through the analysis, firstly, we find that the performance of new energy vehicle enterprises is reducing because of the implementation of the policy; secondly, R&D investment will aggravate the negative impact of Dual-Credit Policy on enterprise performance; finally, compared with private enterprises, state-owned enterprises are more acutely affected by Dual-Credit Policy. Through the interpretation of the policy, we know that Dual-Credit Policy, as an important policy to replace the subsidy policy, its implementation may bring more than a positive impact on the automobile industry. Therefore, we believe that if we want to achieve a smooth transition from "government-led" to "market-led" of new energy automobile, we must introduce new R&D subsidy policies and use them in conjunction with Dual-Credit Policy at this stage.