Summary The main point of this report is to illustrate the reasons why New Energy Vehicles will influence Gasoline Vehicles in the future. The beginning of this report covers the background of the New Energy Vehicles, including both advantages and disadvantages. Following the background is the analysis of the relationship between New Energy Vehicles and Gasoline Vehicles and how New Energy Vehicles influence Gasoline Vehicles, plus the macroeconomics and micro economics effects. Policies from Chinese government and national plan about New Energy Vehicles are also introduced in this part. In the end, suggestions are given to the citizens, firms and government respectively, in order to achieve sustainable development. Table of Contents Introduction .................................................................................................................... 1 1.1 Background of New Energy Vehicles .......................................................... 1 1.2 Advantages of EVs........................................................................................... 1 1.3 Disadvantages of EVs ..................................................................................... 2 Body ..................................................................................................................................... 2 2.1 National plan about New Energy Vehicles ................................................. 2 2.2 Policies for New Energy Vehicles from governments ............................ 2 2.3 Why could New Energy Vehicles influence Gasoline Vehicles ............ 3 2.4 Macro and micro economics effects ........................................................... 5 Conclusion ................................................................................................................