The Influence of Tax Incentives and Fuel Prices on Consumer Perception of Adopting Electric Vehicles in Support of Renewable Energy

This research investigates the influence of tax incentives and fuel prices on consumer perceptions and their intention to adopt electric vehicles (EVs) in Indonesia, with a specific focus on the Greater Jakarta area. The study is grounded in the Theory of Planned Behavior (TPB), which posits that an individual's intention to engage in a particular behavior—such as adopting EVs—is shaped by three key factors: attitude toward the behavior, subjective norms, and perceived behavioral control. In the context of this research, these psychological factors are heavily influenced by economic considerations, particularly government-issued tax incentives and fluctuations in fuel prices. To gather data, the study employed purposive sampling and surveyed 109 respondents who showed an active interest in EV adoption. The survey was distributed online to ensure accessibility and reach within the Greater Jakarta population. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), a statistical tool suitable for analyzing complex relationships between observed and latent variables. The findings revealed that both tax incentives and rising fuel prices positively influence the intention to adopt electric vehicles. These economic motivators enhance consumer attitudes and perceived behavioral control, thus strengthening their intention to transition to EVs. The results underline the strategic role of smart fiscal policies—such as expanding EV tax incentives and launching targeted public awareness campaigns—in promoting EV adoption. Encouraging the public to view EVs not only as environmentally friendly but also economically advantageous may accelerate the shift toward sustainable transportation and renewable energy use in Indonesia.