Abstract: As government subsidies phase out, the new energy vehicle sector that still faces severe challenges needs to be supported by low-cost and efficient sustainable incentive policies. Starting with consumer decision-making mechanism, considering consumer values and bounded rationality, the present study analyzes the impact of the fading subsidy policies for new energy vehicle on different consumer groups’ purchase intention by collecting questionnaires and constructing structural equation model, and explores the moderation effect of frame nudge policy on purchase attitude in the absence of subsidy. The results are as follows. (1) Consumers’ values will affect their purchase attitude. Specifically, their environmental values and innovative values have a positive impact and their functional values have a negative impact, with the largest impact from their innovative values and the smallest impact from their environmental values. (2) Herding effect has a negative impact on purchase attitude and appeal of authority has a positive one, but the total effect of both on purchase intention is significantly positive, and authority effect is wider. (3) The phase-out of subsidies plays a mediating role in purchase attitude and intention, and the direct effect on purchase intention is significantly negative. (4) Relative cost frame and positive environmental frame have a moderating effect on purchase attitude and bounded rationality respectively. Based on the above conclusions, the present study suggests that with the decrease of subsidies, the government and enterprises should improve the functional attributes of new energy vehicle, and policies should be designed in such a manner as to bear in mind that nudge policies based on relative cost frame has the best moderating effect, while the effect of nudge policies based on positive environmental frame depends on consumers’ degree of bounded rationality. The results provide powerful decision support and policy tools for designing new energy vehicle promotion policies in the post subsidy era.

Key words: new energy vehicle, subsidy phase out, bounded rationality, frame nudge, SEM