Towards a Sustainable Public Transport: Finding a Niche to Build Electric Vehicle Industry

Concerns about climate change and the environment have shifted the spotlight to electric vehicles (EVs) as a critical component of sustainable transport. However, its diffusion has been slow in developing countries, especially in the public transport sector. We take the Philippines’ case to show that no one size fits all. For environmental, social and political reasons, the jeepney sector offers a promising niche for the Philippines to develop its EV industry. We use the socio-economic cost-benefit analysis to determine the feasibility of gradually replacing traditional jeepneys with e-jeepneys in various scenarios. Our analysis includes the avoided carbon costs and health costs due to reduced carbon emissions. We incorporate a higher purchase subsidy closer to the acquisition costs of e-jeepneys. The net socio-economic benefits of government investment in e-jeepneys are positive. We demonstrate the importance of building a roadmap and finding a niche in building the EV industry.