Tail risk spillover, transmission path and evolution mechanism of new energy vehicle companies in China: An industry chain perspective

China’s new energy vehicle industry chain has strong advantages but faces risks such as rapid technological changes, global supply chain dependencies, policy volatility, and market dynamics. Properly identifying and managing these risks is essential for the industry’s sustainable development. This s...

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Main Authors: Zimo Feng, Haoyi Hou, Jing Deng
Format: Article
Language:English
Published: Elsevier 2025-12-01
Series:Sustainable Futures
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666188825006203
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author Zimo Feng
Haoyi Hou
Jing Deng
author_facet Zimo Feng
Haoyi Hou
Jing Deng
author_sort Zimo Feng
collection DOAJ
description China’s new energy vehicle industry chain has strong advantages but faces risks such as rapid technological changes, global supply chain dependencies, policy volatility, and market dynamics. Properly identifying and managing these risks is essential for the industry’s sustainable development. This study addresses three main questions: how does the total risk connectedness of the NEV industry chain evolve, how do risks spread within the chain, and which companies significantly contribute to overall risk? Using the tail-event driven network risk (TENET) method and the planar maximally filtered graph (PMFG), this study reveals that risk spillovers significantly increase during some global events. Moreover, the upstream and midstream sectors are key sources of risk, with midstream companies mainly acting as absorbers of risk. The main risk transmission follows an ”upstream–middle–downstream” pathway, although this can reverse in extreme cases. Companies involved in lithium mining, diaphragm production, and battery manufacturing exhibit high systemic risk contributions, marking them as critical nodes in the supply chain. The paper concludes with targeted policy recommendations to support the NEV industry’s sustainable growth and ensure the safety of its supply chain.
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issn 2666-1888
language English
publishDate 2025-12-01
publisher Elsevier
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series Sustainable Futures
spelling doaj-art-3b7d4ebbd9cb49d69f258347b7658b862025-08-20T03:40:24ZengElsevierSustainable Futures2666-18882025-12-011010105610.1016/j.sftr.2025.101056Tail risk spillover, transmission path and evolution mechanism of new energy vehicle companies in China: An industry chain perspectiveZimo Feng0Haoyi Hou1Jing Deng2School of Economics and Management, Beijing Forestry University, Beijing 100083, ChinaSchool of Economics and Management, Beijing Forestry University, Beijing 100083, ChinaCorresponding author.; School of Economics and Management, Beijing Forestry University, Beijing 100083, ChinaChina’s new energy vehicle industry chain has strong advantages but faces risks such as rapid technological changes, global supply chain dependencies, policy volatility, and market dynamics. Properly identifying and managing these risks is essential for the industry’s sustainable development. This study addresses three main questions: how does the total risk connectedness of the NEV industry chain evolve, how do risks spread within the chain, and which companies significantly contribute to overall risk? Using the tail-event driven network risk (TENET) method and the planar maximally filtered graph (PMFG), this study reveals that risk spillovers significantly increase during some global events. Moreover, the upstream and midstream sectors are key sources of risk, with midstream companies mainly acting as absorbers of risk. The main risk transmission follows an ”upstream–middle–downstream” pathway, although this can reverse in extreme cases. Companies involved in lithium mining, diaphragm production, and battery manufacturing exhibit high systemic risk contributions, marking them as critical nodes in the supply chain. The paper concludes with targeted policy recommendations to support the NEV industry’s sustainable growth and ensure the safety of its supply chain.http://www.sciencedirect.com/science/article/pii/S2666188825006203New energy vehiclesTail riskTENETSystemic riskPMFG
spellingShingle Zimo Feng
Haoyi Hou
Jing Deng
Tail risk spillover, transmission path and evolution mechanism of new energy vehicle companies in China: An industry chain perspective
Sustainable Futures
New energy vehicles
Tail risk
TENET
Systemic risk
PMFG
title Tail risk spillover, transmission path and evolution mechanism of new energy vehicle companies in China: An industry chain perspective
title_full Tail risk spillover, transmission path and evolution mechanism of new energy vehicle companies in China: An industry chain perspective
title_fullStr Tail risk spillover, transmission path and evolution mechanism of new energy vehicle companies in China: An industry chain perspective
title_full_unstemmed Tail risk spillover, transmission path and evolution mechanism of new energy vehicle companies in China: An industry chain perspective
title_short Tail risk spillover, transmission path and evolution mechanism of new energy vehicle companies in China: An industry chain perspective
title_sort tail risk spillover transmission path and evolution mechanism of new energy vehicle companies in china an industry chain perspective
topic New energy vehicles
Tail risk
TENET
Systemic risk
PMFG
url http://www.sciencedirect.com/science/article/pii/S2666188825006203
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AT haoyihou tailriskspillovertransmissionpathandevolutionmechanismofnewenergyvehiclecompaniesinchinaanindustrychainperspective
AT jingdeng tailriskspillovertransmissionpathandevolutionmechanismofnewenergyvehiclecompaniesinchinaanindustrychainperspective