Recently, the ministry of finance announced the results of local allocation of subsidy funds for energy conservation and emission reduction in 2020 ahead of schedule.In 2017, subsidies for the promotion and application of new energy vehicles totaled about 16 billion yuan, and subsidies for the operation of energy-saving and new energy buses totaled about 15.3 billion yuan in 2018, totaling 31.368 billion yuan in two years.

 The subsidy covered 37 regions, among which henan province received the highest subsidy, reaching 5.46 billion yuan, mainly because yutong occupies a large market share in the field of new energy buses.Hunan province and shandong province followed with 2.9 billion yuan and 2.8 billion yuan respectively.

  China began to promote new energy vehicles in 2009, and introduced subsidy policies in 2010. With the encouragement of subsidy policies, a large amount of social capital entered this field, making China the largest new energy vehicle market in the world.

   However, we have to admit that subsidies are a "double-edged sword". While promoting the development of the market, they also breed some cheating behaviors.In order to prevent cheating, the subsidy policy increases the assessment of operating mileage for operating vehicles. It requires that the accumulative mileage of new energy vehicles purchased by non-individual users must reach 20,000 kilometers before they can receive the subsidy.This is why, in the above subsidy budget, both promotion subsidy and operation subsidy are involved.

   At the same time, China's subsidies for new energy vehicles have been reduced year by year and are expected to be withdrawn completely by the end of 2020.After the subsidy is withdrawn, the "double credits" policy will become a shift policy to encourage auto companies to continue to produce new energy vehicles, and make the promotion of new energy vehicles more market-oriented through points trading.