Electric Vehicle Adoption in India: A Study Based on System Dynamic Approach

Abstract

The paper studies the adoption of Electric Vehicles (EVs) as an option to do away with Internal Combustion Engine Vehicles (ICEV) which is the major contributors to carbon emissions in today's scenario. The automobile industry is considered responsible for the air pollution due to the fuels derived from the petroleum, which are the source of energy for the internal combustion engine vehicles. Moreover, the prices for fossil fuels are increasing day by day which makes the traditional automobile a costly affair. In order to reduce the vehicular emissions, to gain the energy security, to combat with the rising prices of fossil fuels and to attain environmental sustainability for the coming generations automobile manufacturers and the policy makers around the world are considering electric vehicles as an alternative to internal combustion engine vehicles. Electric Vehicles are being launched as an innovative green product in the market as an alternative to traditional vehicles. The theoretical framework of system dynamics approach have been adopted in the study. Study shows that system dynamics approach is very helpful in understanding policy resistance behaviour of people towards any new initiative. The paper aims to study this policy resistant behaviour of consumers and automotive manufacturers towards EV adoption through system dynamics approach.