Analysis of Development Trends of New Energy Electric Vehicles Based on Ridge Regression and DID Model

The new energy vehicle industry is facing some challenges. In this paper, we first collected data on the 7 main factors affecting the development of new energy electric vehicles and calculated Spearman correlation coefficients between the factors. Then, we construct a ridge regression model with the sales of new energy vehicles as the dependent variable to describe the development of new energy vehicles. Next, we construct a structural equation model to explore the path of the development of new energy automobile as well as the overall automobile industry on the traditional energy automobile industry. Finally, we construct an ARIMA model to predict the data after the enactment of the policy in May 2019 compared with the true value, and we construct a DID model and select the export volume of new energy vehicles from Japan and Germany as the control group in order to explore the impact of the January 2020 policy on the development of new energy vehicles. It was concluded that the development of new energy buses could improve carbon emission reduction.