Policy Divergence in China's EV Market

This chapter investigates the significant divergence in EV market outcomes among Chinese cities, despite operating under a uniform national policy framework. Through a comparative case study of Hangzhou and Tianjin, the authors explain why two cities with similar socioeconomic profiles exhibit starkly different market penetration rates. The analysis employs an adapted policy mix framework, deconstructing each city's strategy into three key themes: demand-side regulation, supply-side industrial policy, and infrastructure governance. The findings reveal that Hangzhou's success is attributable to a coherent and consistent policy portfolio where stringent non-fiscal regulations create strong consumer demand. In contrast, Tianjin's slower adoption is linked to a less consistent policy mix constrained by path dependency on legacy automotive joint ventures. The chapter concludes that local state capacity to design and implement a synergistic policy mix is a critical determinant of success in sustainability transitions.