Driving ESG: Tax Policy and Electric Vehicle Incentives

The Indian automobile industry is undergoing a paradigm shift with the increasing focus on Electric Vehicles (EVs). Driven by the dual objectives of reducing carbon emissions and minimizing dependence on fossil fuels, India is witnessing a growing interest in EVs among consumers, manufacturers, and policymakers. This study explores the current landscape of electric vehicles in India, focusing on the opportunities for growth, such as government support, technological advancement, and environmental benefits, as well as the challenges, including infrastructure limitations, high costs, and consumer skepticism. Using primary and secondary data sources, this research provides an analytical understanding of India's readiness for an EV revolution and offers strategic suggestions to accelerate adoption. The 21st century has witnessed a transformative shift in the global transportation landscape, driven by the urgent need to mitigate environmental degradation, reduce dependency on fossil fuels, and adopt sustainable technologies. Among the most promising innovations in this domain is the development and adoption of Electric Vehicles (EVs). These vehicles offer a cleaner and greener alternative to conventional internal combustion engine (ICE) vehicles by significantly reducing greenhouse gas emissions, air pollution, and noise levels. In the context of India, one of the fastest-growing economies with a population exceeding 1.4 billion, the transition to electric mobility presents both immense opportunities and significant challenges. India’s transportation sector is currently a major contributor to greenhouse gas emissions and urban air pollution. With increasing urbanization and motorization, the demand for personal and commercial vehicles is rising rapidly, exacerbating environmental concerns. At the same time, India imports more than 80% of its crude oil requirements, leading to substantial economic burden and energy insecurity. In this scenario, Electric Vehicles have emerged as a strategic solution, aligning with India’s commitments under the Paris Agreement and its broader goal of achieving net-zero carbon emissions by 2070. The Indian government has been proactive in promoting EV adoption through initiatives like the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, offering incentives, subsidies, and tax benefits to consumers and manufacturers alike. State governments have also introduced EV policies aimed at encouraging local manufacturing, creating charging infrastructure, and increasing public awareness. Moreover, the falling costs of lithium-ion batteries, technological advancements, and the rising popularity of shared mobility platforms are further strengthening the EV ecosystem. Despite these favorable developments, India’s EV market is still at a nascent stage, accounting for only a small fraction of the overall automobile sales. The path to widespread EV adoption is hindered by several critical challenges, such as inadequate charging infrastructure, high initial costs, limited driving range, battery performance concerns, and lack of consumer awareness. These factors have created a gap between policy ambitions and actual ground-level adoption, especially in rural and semi-urban areas. This study aims to critically examine the opportunities and challenges associated with the adoption of electric vehicles in India. It explores the current status of the EV industry, government policies, market trends, consumer perception, technological barriers, and the socio-economic implications of a shift toward electric mobility. By analyzing both primary data from stakeholders and secondary sources including industry reports and academic studies, this research endeavors to provide a holistic understanding of the electric vehicle landscape in India. The findings of this study will be valuable for policymakers, automobile manufacturers, environmentalists, and consumers alike. It will not only shed light on the practical obstacles that need to be addressed but also offer strategic recommendations to accelerate the growth of electric vehicles in India. Ultimately, the transition to electric mobility is not merely a technological change—it represents a fundamental shift toward a more sustainable, energy- efficient, and environmentally responsible future.

Driving a sustainable road transportation transformation

Effect of adoption of electric vehicles on public health and air pollution in China: a modelling study

The purpose of this article is to substantiate the necessity of government programs in the People's Republic of China (PRC) in supporting electric vehicle (EV) production, analyze the impact of these initiatives on the growth and development of the EV sector, and their contribution to the global transition to sustainable transportation. The article aims to provide both theoretical insights and scientific and practical recommendations for enhancing the effectiveness of public policies and financial incentives to accelerate EV production, reduce carbon emissions, promote green innovation in the automotive sector, and develop infrastructure and research support provided by the Chinese government. Methodology. The article uses a combination of quantitative and qualitative research methods to analyze the impact of government programs on EV production in the PRC. Statistical analysis is applied to assess the relationship between government incentives (such as subsidies, tax breaks, and grants) and the growth of EV production in the PRC. A case study approach is also used to examine successful government initiatives in the PRC. Additionally, comparative analysis is employed to explore the effectiveness of different policy models and identify challenges and opportunities for scaling up EV production in the PRC. The results of the study show that government programs play a crucial role in stimulating the growth of EV production in the PRC. Support from the Chinese government for the EV market through financial subsidies, tax incentives, and investments in infrastructure has successfully positioned the PRC as a global leader in the EV market. Despite these achievements, challenges remain in rural adoption and technological integration, which require continued innovation and policy refinement. The study also identifies several issues, including high initial costs, limited charging infrastructure, and resistance from traditional automakers. Practical implications. The study's findings underline the need for governments to design policies that combine financial incentives, infrastructure development, and regulatory measures to support the EV industry. We have developed and proposed practical recommendations to enhance the effectiveness of government programs, such as the integration of public-private partnerships, the development of targeted incentives for manufacturers, and the creation of EV production hubs. These measures are essential to overcoming existing barriers and achieving large-scale EV adoption. Value / Originality. This article provides an in-depth analysis of government programs supporting EV production, contributing to existing knowledge by offering new ideas for improving public policy to accelerate the green transition in the automotive sector and the long-term sustainability of China’s EV programs. The research contributes to the understanding of effective tools and strategies for boosting EV production and adoption, emphasizing the need to shift from subsidies to fostering innovation and addressing the challenges of rural adoption and infrastructure development. The study's findings are relevant for policymakers, stakeholders, and researchers in the field of electric vehicle production and consumption in the PRC and worldwide, particularly in the context of sustainable development and environmental transformation.

Purpose The purpose of this study is to investigate the role of policy incentives (PIs) on the adoption intention (AI) of electric vehicles (EVs). It also examines the mediating and moderating roles of technology knowledge (TK) and environmental awareness (EA) to promote EVs in the context of sustainable transportation. Design/methodology/approach A cross-sectional quantitative study using structured questionnaires is administered, and data from 312 responses are analysed with the help of SPSS and AMOS. Exploratory factor analysis is used to confirm the factor structure, while SEM is used to test the direct, mediating and moderating hypotheses. Findings The results of the study reveal that PIs significantly influence the AI of EVs. These incentives also impact the TK of consumers positively. TK is found to mediate the relationship between PIs and AI of EVs, signifying that PIs’ impact on EV adoption is enhanced if the consumer knows about EV technology. Furthermore, EA is found to moderate both PIs and TK relations with AI of EVs, implying that higher environmental consciousness converts PIs and TK into better adoption prospects. Research limitations/implications Based on technology acceptance model and theory of planned behaviour, this study integrates PIs with environmental and technological variables to analyse a comprehensive adoption framework for EVs. It examines the interplay between PIs, TK and EA and extends the multilayer understanding into consumer behaviour in the EV domain. Practical implications The focus of EV firms and policymakers, in addition to financial and non-financial incentives, should be on enhancing consumer knowledge about the EV technology. Making the masses aware of the environmental issues through sustainability messaging can significantly strengthen EV adoption rates. EV makers can use TK and EA as segmenting variables to develop tailormade strategies for EV adoption. Social implications This study shows how the impact of PIs can be complemented through TK and EA to encourage pro-environmental behaviour, such as the adoption of EVs in society. The combination of economic, technological and psychological factors is therefore required to bridge the socio-environmental gap that still exists globally. Originality/value This study integrates TK and EA with PIs to analyse their impact on EV adoption rates. The insights into direct, mediating and moderating roles of these variables thus offer new insights for advancing sustainable mobility.

Will users practice what they preach? Exploring the influencing factors of the intention behaviour gap in electric vehicles adoption

Establishment of the National Centre for E-Vehicle and Sustainable Technology (EVST)

Green vehicles, such as electric vehicles (EVs), are getting noteworthy popularity among consumers worldwide. The purpose of this paper is to establish EVs as a feasible long-term solution for the future of technology in the vehicle industry, which can decrease the current dependency on fossil fuels and also decrease greenhouse gas (GHG) emissions. As a part of long-term benefits, the adoption of EVs gives environmentally friendly innovation to society. Despite positive environmental implications, the total number of EVs in usage is still inadequate. One of the major causes of this insubstantial adoption of EVs is largely dependent on the perceptions of consumers regarding EVs. However, this particular research study offers an inclusive outline on the existing hurdles for consumer adoption of EVs as well as a framework of the theoretical standpoints that were developed for the adoption behaviour, in addition to considering consumer intentions in the direction of EVs. In this particular study, the researcher found that the literature regarding EV adoption tried to address only the diffusion method of EVs. Whereas this study highlights consumer innovations, which provides a wide insight on consumer emotions to overlook the major aspect in consumer EVs' adoption research. The theme of this particular literature can be implemented in order to better understand the consumers' emotions and behaviour towards the adoption of EVs. The scholars further stated that there is a possible cause for more recent developments within the technological adoption part that can assist to be a standard for upcoming developments. For the last few years, knowledge regarding the problems surrounding the adoption and diffusion of EVs has gained less attention. This study expands this line of research by focusing on making a chance for developing the theoretical frameworks in terms of adding emotions in a psychological perspective where consumer behaviour and ethics are considered. Copyright © 2016 John Wiley & Sons, Ltd.

While there are arguments suggesting that tax incentives can expedite the adoption of electric vehicles (EVs), there are also counterarguments proposing that these incentives may exacerbate external costs. As a result, the government may need to incorporate public opinion as an input in formulating the most suitable approach to promote the adoption of electric vehicles within society. The purpose of this study is to investigate public sentiment on EV tax incentives in Indonesia through Twitter. This study utilizes text mining to examine public attitudes and sentiments toward EV using Twitter data. The sentiment analysis model employed is the Indonesian RoBERTa Base Sentiment Classifier. The data utilized in this study consists of Twitter posts spanning from May 2022 to May 2023. The final dataset for analysis comprises 99,856 tweets, each identified by a unique tweet ID. The results show that neutral sentiment dominating the tweet post from negative and positive sentiment. We also found that 56% are supporters and 44% are opposing groups. Tax incentive policies may not always be supported in terms of being considered unfair or inappropriate. Our finding shows three topics that are important for the public about EV: the price of electric vehicles, environmental issues, and EV infrastructure. This study demonstrates that tax incentives or price subsidies may not consistently receive positive perceptions or full support from society. Certain policies considered by specific stakeholders may diminish the effectiveness and expected outcomes of these measures. Our findings have several contributions for knowledge development and tax policy makers.

Objectives: This study explores consumer attitudes towards electric vehicle (EV) adoption in Vietnam, emphasizing environmental concerns and the willingness to embrace EVs. It also investigates the influence of ride-hailing services in facilitating EV adoption and identifies the challenges faced, along with potential solutions. Additionally, the study contributes to several Sustainable Development Goals (SDGs), especially SDG 11: Sustainable Cities and Communities, by promoting sustainable transportation and contributing to more sustainable and livable cities. Theoretical Framewwork: The study employs a framework linking environmental awareness, consumer behavior, and the adoption of sustainable technologies, such as electric vehicles (EVs). Method: The research employed a survey targeting 782 users in major Vietnamese cities to collect data on their environmental concerns and EV usage patterns. Results and Discussions: The study found a high level of environmental concern among respondents, but a lower rate of EV ownership. It also highlighted the role of ride-hailing services in facilitating EV adoption. Key Findings: (1) A high percentage (80%) of respondents expressed concern about environmental issues and the role of Evs; (2) While a significant portion (74%) had used EV ride-hailing services, only a minority (30%) owned an electric scooter; (3) EV ride-hailing services are gaining popularity and are seen as a pathway to wider EV adoption. Research Implications: The study highlights the importance of understanding consumer perceptions and behaviors in shaping effective EV promotion strategies. The study's findings have implications for policymakers and businesses seeking to promote EV adoption in Vietnam, suggesting a need for addressing consumer concerns and leveraging ride-hailing services. Originality/Value: The study's originality lies in its focus on the Vietnamese market and the specific interplay between environmental concerns, EV adoption, and ride-hailing services.

Purpose This study aims to explore tourist perceptions and behaviors toward electric vehicles (EVs) in the Delhi National Capital Region using the technology continuance theory. Design/methodology/approach An online survey involving 226 respondents uses structural equation modeling to analyze correlations among factors, including perceived enjoyment, facilitating conditions, ease of use, satisfaction, cost, image and performance. Findings This study reveals that enhancing perceived enjoyment and facilitating conditions can improve the user-friendliness of EVs. Additionally, reducing perceived cost, enhancing image and improving perceived performance can increase the perceived usefulness of EVs. Perceived ease of use strongly influences user satisfaction, while perceived usefulness and satisfaction positively impact users’ attitudes and intentions to use EVs. Although factors such as experience, environmental consciousness, age and gender influence perceptions, focusing on enjoyment, facilitating conditions, cost, image and performance can significantly enhance user satisfaction and intention to use EVs. Research limitations/implications The findings underscore several actionable recommendations for businesses and policymakers to boost EV adoption at tourist destinations. The potential benefits of EV adoption, such as improved environmental sustainability, enhanced technological image and increased tourist satisfaction, can serve as a source of inspiration and motivation. Enhancing user experience by prioritizing comfort and convenience in EV design is crucial. Addressing cost concerns through incentives and cost-effective pricing strategies can make EVs more appealing. Marketing campaigns highlighting environmental benefits and technological advancements can improve EV image and performance perception. Prioritizing tourists’ satisfaction and support services is essential, along with educational campaigns to increase awareness. Infrastructure development, including expanding charging networks, and supportive policies like tax incentives, can further encourage EVs adoption, accelerating the transition to sustainable transportation. Originality/value This research contributes to understanding tourist perspectives on EV adoption within the context of sustainable tourism and technology adoption.

Electric vehicles’ energy consumption measurement and estimation

As decarbonisation is becoming increasingly important, many countries have placed an emphasis on decarbonising their transportation sector through electrification to support the transition to net zero. As such, research regarding the adoption of electric vehicles has drastically increased in recent years. Mathematical modelling plays an important role in optimising a transition to electric vehicles. This article describes a systematic literature review of existing works which perform mathematical modelling of the adoption of electric motor vehicles. In this study, 53 articles containing mathematical models of electric vehicle adoption are reviewed systematically to answer 6 research questions regarding the process of modelling transitions to electric vehicles. The mathematical modelling techniques observed in existing literature are discussed, along with the main barriers to electric vehicle adoption, and future research directions are suggested. • Mathematical modelling is important in optimising transitions to electric vehicles. • The most common modelling techniques are discrete choice modelling and agent based modelling. • Lack of successful business models is a significant barrier to EV adoption.

The electric vehicle industry in Malaysia constitutes approximately 80% of total industry output, reflecting its growing significance as the country moves toward achieving carbon neutrality by 2050. This paper investigates buyers’ adoption of the electric vehicle industry in Malaysia by examining the perception of product cost-benefit, product compatibility, government tax policies and incentives by incorporating the buyers’ confidence attitude as a mediator. A quantitative cross-sectional approach was applied using data gathered from survey questionnaires from employed Malaysians aged 21 and above, with a minimum sample size of 384 respondents. Data analysis was conducted using Structural Equation Modeling (SEM)-AMOS, to validate the constructs. The study is expected to show the mediating effect of buyers’ confidence attitude between factors influence buyers’ adoption on electric vehicle in Malaysia. Grounded in Diffusion of Innovation theory, the findings offer practical insights for policymakers and industry stakeholders to enhance electric vehicle adoption and industry long-term sustainability.

This research examines the fiscal challenges and potential solutions associated with the global transition to electric vehicles. Electric vehicle adoption is accelerating, and governments need more revenues from traditional fuel taxes while simultaneously needing to invest in charging infrastructure. The research examines possible tax strategies to reduce the budget deficit and provide long-term finance for transportation projects. It also emphasizes the importance of considering both tax policies’ short- and long-term impact on electric vehicle deployment and environmental goals. The research shows that phasing in taxes on electric vehicles, such as road tolls, mileage fees, battery production taxes, and electricity use taxes, can effectively offset lost revenues from fuel taxes. By proactively implementing such policies, governments may help smooth the transition to electric vehicles, ensure financial stability, and create a cleaner, more sustainable transportation system.