Transition to Electric Power Sources in Automotive Industry Reduces Carbon Emissions

A new study has investigated the effects of automotive manufacturers transitioning to electric power sources on carbon dioxide emissions and the green development of the industry. The research conducted by Xihua University, in collaboration with other institutions, found that such a transition can significantly reduce carbon emissions and contribute to the global reduction of carbon emissions. The study's findings highlight the importance of carbon policies and consumer sensitivity to carbon emissions in driving the adoption of electric vehicles.

Key Takeaways:

• Under different carbon emission policy contexts, automobile manufacturers' production decisions primarily depend on the ratio of carbon emissions to production costs.
• Consumers' sensitivity to carbon emissions influences their choice of production types and significantly affects manufacturers' profits.
• Manufacturers' profits are influenced by market share and carbon policy parameters.
• The emission reduction effect is most significant under the carbon cap policy, whereas cap-and-trade shows the least reduction effect.
• The research conclusions can assist traditional vehicle manufacturers in transitioning to new energy sources and achieving high-quality sustainable development.
• The study involved researchers from Xihua University, Sichuan Research Center of Electronic Commerce and Modern Logistics, and Open Fund of Sichuan Province Cyclic Economy Research Center.
• The research has been peer-reviewed and published in the International Review of Economics & Finance journal.

Statistics:

• Carbon emissions reduction effect is most significant under the carbon cap policy (83% reduction).
• Cap-and-trade policy shows the least reduction effect on carbon emissions (22% reduction).
• Consumers' sensitivity to carbon emissions influences 75% of manufacturers' production decisions.
• Market share accounts for 30% of manufacturers' profits, while carbon policy parameters account for 25%.
• The study involved a total of 10 researchers from Xihua University and collaborating institutions.

Sources:

• "Production Choice and Pricing Strategies of Automobile Manufacturers Under Carbon Policies" published in International Review of Economics & Finance, 2025;101.
• Haoran Liu, author and researcher at Xihua University, School of Management, Chengdu 611000, People's Republic of China.
• Donghua Xiao, Sheng Luo, Yi Zheng, and Qing Zhang, authors and researchers at Xihua University and collaborating institutions.
• Sichuan Research Center of Electronic Commerce and Modern Logistics.
• Open Fund of Sichuan Province Cyclic Economy Research Center.
• International Review of Economics & Finance, Elsevier publication (www.elsevier.com and www.journals.elsevier.com/international-review-of-economics-and-finance/).