Synergistic effect of government policy and market mechanism on the innovation of new energy vehicle enterprises

To accelerate the realization of the "carbon neutrality and carbon peaking" (dual carbon) goal, the "Opinions on Financial Support for Carbon Neutrality and Carbon Peaking" (the "Opinions") advocates the comprehensive adoption of tax incentives, government procurement and market-diversified investment measures to support the green low-carbon innovation transformation of key industries. Taking China's strategic new energy vehicle (NEV) industry from 2009 to 2021 as a sample, this paper empirically investigates the innovation effect of the measures in the "Opinions" on listed NEV enterprises. The results show that: (1) Both "supply-side" tax incentives and "demand-side" government procurement encourage NEV enterprises to innovate independently, jointly and efficiently, and the "supply-side" tax incentives have a stronger innovation effect. At the same time, compared with joint innovation, government policies are more conducive to independent innovation of NEV enterprise. (2) Market venture capital also encourages NEV enterprises to innovate. Government policy signals to the market can attract venture capital, and the "demand side" government procurement signal effect is stronger. (3) Tax incentives and venture capital, government procurement and venture capital have played an innovative synergistic effect on NEV enterprises. (4) There is an innovation failure in the combination of tax incentives and government procurement, but the innovation effect appears after the introduction of market venture capital. This paper not only supports the effectiveness of the innovative measures in the "Opinions", but also recognizes the continuation of the vehicle purchase tax exemption policy for NEVs.