Optimal timing for nonsubsidized policy implementation in the electric vehicle industry

This research examines a scenario involving an electric vehicle (EV) manufacturer promoting innovation, a retailer focusing on advertising and service (A&S), and a government implementing nonsubsidized policies to enhance social welfare and spur EV adoption. The nonsubsidized policies under consideration are classified as ex-ante (EA), ex-ing (EI), or ex-post (EP), depending on their chronological deployment. Our findings indicate that EI is consistently suboptimal due to the presence of the (anti-)synergy effect. However, either the EA or EP policy proves optimal: EA is preferred when consumers value EV innovation and A&S whereas EP is desirable when associated costs are inefficient.