Optimal Supply of New Energy Vehicles With Subsidizing Under Demand Uncertainty

For increasing the production of new energy vehicles, government’s subsidy policy was implemented in the early stage of its development. This paper considers consumer subsidies and manufacturer subsidies, and modeling to compare the manufacturer’s optimal production and profit of two subsidy mechanisms under certainty and uncertainty demand. Research shows manufacturer’s supply and profit are the same under two subsidies with certain demands; we also show that the production supply is not always decreased with the increase of demands’ uncertain, and compare to manufacturer subsidies, consumer subsidies is more benefit the production of new energy vehicles for government.