A framework to explore policy to support the adoption of electric vehicles in developing nations: A case study of Indonesia
Rachmad Hidayat, Jonathan Cowie
Abstract
Electric vehicles (EVs) are gaining popularity as an alternative to internal combustion engines (ICEs). However, the electrification of transport has not progressed equally throughout the world. The transition from ICEs to EVs may face some challenges in infrastructure, technology, economics, and user acceptance. Consequently, market penetration is very low due to the significant dominance of ICE in the automotive market, particularly in developing countries. The role of electric vehicles, considered one of the keys to reducing greenhouse gas (GHG) emissions, has not yet been seen significantly. In line with the commitment to reduce GHG emissions by 2030 and considering substantial contribution that the transport sector substantially contributes to GHG emissions, the Indonesian government has strengthened its support for developing the domestic electric vehicle industry through several policies and regulations. The government has introduced several fiscal and non-fiscal measures to work towards achieving that target. As part of an ongoing study, this paper summarised the published literature review and theoretical framework for policies supporting advancing EV adoption in developing countries. The result of this study is expected to assist in developing future EV programs, contributing to reducing GHG emissions and improving transportation sustainability.