FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007 EÍDOS 24

2024

Resumen:

Los vehículos eléctricos (EV) representan una innova-

ción transformadora en la industria automotriz y ofre-

cen una solución prometedora a los desafíos ambien-

tales. Este artículo examina la compleja interacción

de factores económicos, sociales y ambientales, que

inuyen en las decisiones de los consumidores para

adoptar vehículos eléctricos. Los factores económicos,

como el precio de compra inicial y los costos operati-

vos, juegan un papel crucial en la adopción. Las in-

vestigaciones sugieren que, a medida que los precios

de los vehículos eléctricos se vuelvan más competiti-

vos y los gastos operativos disminuyan, las tasas de

adopción se acelerarán. Los factores sociales, incluida

la inuencia de los pares y las percepciones sobre el

rendimiento, la conabilidad y la conveniencia de los

vehículos eléctricos, también moldean las actitudes y

preferencias de los consumidores. Las consideracio-

nes ambientales, incluido el imperativo de mitigar las

emisiones de gases de efecto invernadero y reducir

la contaminación del aire, impulsan la adopción de

1,2

Mohammad Farajnezhad,

Jason See Toh Seong Kuan,

Hesam Kamyab

Faculty of Business and Communication, Inti International University, 71800 Nilai, N. Sembilan, Malaysia;

CSIRT Center, Computer Engineering Department, Lorestan University, Iran. taban1010@gmail.com.

ORCID: 0000-0002-2086-9294

Faculty of Business and Communication, Inti International University, 71800 Nilai, N. Sembilan, Malaysia.

jasonsee.toh@newinti.edu.my. ORCID: 0000-0002-1309-5200

Faculty of Chemical and Energy Engineering, Universiti Teknologi Malaysia, 81310, Skudai, Johor, Malaysia.

hesam_kamyab@yahoo.com. ORCID: 0000-0002-5272-2297

Impact of Economic, Social, And Environmental

Factors on Electric Vehicle Adoption: A Review

Impacto de los factores económicos, sociales y ambientales

en la adopción de vehículos eléctricos: una revisión

EÍDOS N

Revista Cientíca de Arquitectura y Urbanismo

ISSN: 1390-5007

revistas.ute.edu.ec/index.php/eidos

Recepción: 11, 04, 2024 - Aceptación: 15, 05, 2024 - Publicado: 01, 07, 2024

Abstract:

Electric vehicles (EVs) represent a transformative

innovation in the automotive industry, offering a

promising solution to environmental challenges. This

paper examines the complex interplay of economic,

social, and environmental factors that inuence

consumers' decisions to adopt EVs. Economic factors,

such as initial purchase price and operating costs, play

a crucial role in adoption. Research suggests that as

EV prices become more competitive and operational

expenses decline, adoption rates will accelerate. Social

factors, including peer inuence and perceptions of EV

performance, reliability, and convenience, also shape

consumer attitudes and preferences. Environmental

considerations, including the imperative to mitigate

greenhouse gas emissions and reduce air pollution,

drive the adoption of EVs. This review synthesizes

existing literature on the impact of economic,

social, and environmental factors on EV adoption,

providing valuable insights for policymakers, industry

stakeholders, and researchers. By elucidating the

complex dynamics that inuence consumer behavior,

this study contributes to the ongoing discourse on

sustainable mobility and the transition towards a

greener transportation ecosystem.

Keywords: Electric vehicles, transport sector,

sustainability, adoption, economic, social,

environmental, Malaysia.

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007

EÍDOS 24

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vehículos eléctricos. Esta revisión sintetiza la literatura

existente sobre el impacto de los factores económicos,

sociales y ambientales en la adopción de vehículos

eléctricos, proporcionando información valiosa para

los formuladores de políticas, las partes interesadas de

la industria y los investigadores. Al dilucidar las com-

plejas dinámicas que inuyen en el comportamiento

del consumidor, este estudio contribuye al discurso

actual sobre la movilidad sostenible y la transición ha-

cia un ecosistema de transporte más ecológico.

Palabras claves: Vehículos eléctricos, sector transpor-

te, sostenibilidad, adopción, económico, social, am-

biental, Malasia.

1. INTRODUCTION

1.1 Background and Importance of

Electric Vehicles (EVs)

Electric vehicles (EVs) represent a signi-

cant advancement in automotive technol-

ogy, offering numerous benets over tradi-

tional internal combustion engine vehicles.

The background of EVs traces back to the

early 19th century when electric-powered

vehicles emerged as viable alternatives to

steam and gasoline-powered cars. Howev-

er, it was not until recent decades that EVs

gained traction as a practical and sustain-

able solution to transportation challenges.

The importance of EVs lies in their potential

to address pressing issues such as climate

change, air pollution, and energy security.

As concerns about greenhouse gas emis-

sions and their impact on global warming

continue to escalate, EVs present a promis-

ing avenue for reducing carbon emissions

from the transportation sector. By replacing

conventional fossil fuel-powered vehicles

with electric counterparts, EVs contribute

to mitigating climate change by reducing

reliance on fossil fuels and lowering carbon

dioxide emissions. Furthermore, EVs offer

signicant improvements in air quality, par-

ticularly in urban areas where air pollution

from vehicles is a major concern. Unlike in-

ternal combustion engine vehicles, which

emit pollutants such as nitrogen oxides

and particulate matter, EVs produce zero

tailpipe emissions, thus helping to improve

air quality and public health.

Additionally, the adoption of EVs promotes

energy security by reducing dependence

on imported oil and diversifying the sourc-

es of energy used for transportation. With

advancements in renewable energy tech-

nologies such as solar and wind power,

EVs have the potential to be powered by

clean and domestically produced electrici-

ty, further enhancing energy independence

and resilience. Moreover, the proliferation

of EVs presents economic opportunities

for industries involved in their production,

distribution, and maintenance. As demand

for EVs grows, it stimulates innovation and

ABBREVIATIONS

Electric vehicles EVs

Zero Emission Vehicle ZEV

Traditional internal combustion engine vehicles ICEVs

Nitrogen Oxides NOx

Particulate Matter PM

Carbon Monoxide CO

Volatile Organic Compounds VOCs

Internal combustion engine vehicles ICEVs

Plug-in hybrid Electric vehicles PHEV

European Union EU

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007 EÍDOS 24

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investment in battery technology, charging

infrastructure, and related industries, lead-

ing to job creation and economic growth.

The background and importance of EVs

underscore their role as a transformative

technology with the potential to address en-

vironmental, health, energy, and econom-

ic challenges. By transitioning to electric

transportation, societies can move towards

a more sustainable and resilient future.

1.2 Overview of the Environmental,

Social, and Economic Impacts of EV

Adoption

The adoption of electric vehicles (EVs) has

multifaceted impacts on the environment,

society, and economy, inuencing various

aspects of human life and global sustain-

ability. An overview of these impacts can

be elucidated as follows:

• Environmental Impacts: EV adoption

contributes to mitigating environmen-

tal degradation by reducing green-

house gas emissions and air pollu-

tants. Studies have shown that EVs

produce lower emissions compared

to internal combustion engine vehi-

cles, particularly when powered by

renewable energy sources (Zhang

et al., 2019). This leads to improve-

ments in air quality, public health,

and ecosystem integrity, suppor-

ting global efforts to combat climate

change and environmental degrada-

tion (Han et al., 2020).

• Social Impacts: The widespread

adoption of EVs can bring about so-

cial transformations by inuencing

mobility patterns, urban planning,

and social equity. EVs offer quieter

and cleaner transportation options,

enhancing the quality of life for resi-

dents in urban areas and reducing

noise pollution (Zheng et al., 2021).

Moreover, EV adoption promotes so-

cial inclusion by providing accessi-

ble and affordable transportation so-

lutions, particularly for underserved

communities (He et al., 2021).

• Economic Impacts: The transition to

EVs has signicant economic impli-

cations, affecting industries, markets,

and employment opportunities. The

EV market stimulates technological

innovation, driving advancements in

battery technology, electric drivetra-

ins, and charging infrastructure (Li

et al., 2021). This fosters economic

growth, job creation, and investment

opportunities in the renewable ener-

gy and automotive sectors (Wang et

al., 2020). Additionally, EV adoption

reduces reliance on imported oil and

enhances energy security, leading to

cost savings and economic resilien-

ce (Wu et al., 2021).

In summary, the adoption of EVs has pro-

found environmental, social, and economic

impacts, shaping the trajectory of sustain-

able development worldwide. Understand-

ing these impacts is essential for policy-

makers, businesses, and individuals to

make informed decisions and promote the

widespread adoption of EVs for a cleaner,

healthier, and more prosperous future.

2. LITERATURE REVIEW

2.1 Historical Development of Electric

Vehicles

The concept of electric vehicles (EVs)

dates to the early 19th century, with sig-

nicant advancements occurring over the

decades. This historical development high-

lights the evolution of EV technology and

its integration into modern transportation

systems. The rst electric vehicle proto-

type was developed by Scottish inventor

Robert Anderson in the 1830s, consisting

of a crude electric carriage powered by

non-rechargeable batteries (Notten et al.,

2017). Subsequent innovations by Thomas

Davenport and others in the mid-19th cen-

tury led to the introduction of electric trams

and trolleybuses in urban areas (Laugwitz,

2017). The early 20th century witnessed

signicant advancements in EV technol-

ogy, spurred by concerns over air pollu-

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007

EÍDOS 24

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tion and dependence on fossil fuels. The

Detroit Electric Company, founded in 1907,

became one of the leading manufacturers

of electric cars, offering a range of mod-

els popular among urban dwellers (Gross,

2018). However, the emergence of afford-

able gasoline-powered vehicles, coupled

with advancements in internal combus-

tion engine technology, led to a decline

in EV popularity by the 1930s. Interest in

EVs resurged in the late 20th century amid

growing concerns over environmental pol-

lution and oil dependency. The California

Air Resources Board's Zero Emission Ve-

hicle (ZEV) mandate in the 1990s incen-

tivized automakers to produce electric

and hybrid vehicles, leading to the intro-

duction of models such as the General

Motors EV1 and Toyota Prius (Sperling &

Gordon, 2009). Despite initial enthusiasm,

limited battery range and high costs hin-

dered widespread EV adoption during this

period. The 21st century has witnessed a

rapid acceleration in EV development and

adoption, driven by advancements in bat-

tery technology, government incentives,

and increasing environmental awareness.

Companies like Tesla Motors have pio-

neered the mass production of long-range,

high-performance electric vehicles, while

governments worldwide have implement-

ed policies to promote EV adoption and

expand charging infrastructure (Faria et

al., 2019). Additionally, the emergence of

electric buses, trucks, and motorcycles fur-

ther underscores the diversity and poten-

tial of EV technology in various transpor-

tation sectors. The historical development

of electric vehicles reects a trajectory

marked by innovation, challenges, and

opportunities. As technology continues to

evolve and sustainability concerns inten-

sify, EVs are poised to play a central role in

shaping the future of transportation.

According to the International Energy

Agency (2021), global energy use will

continue to grow in all major end‐use sec-

tors. The total nal consumption (TFC)

will increase by around 20% in 2020–50.

The demand for fossil fuels will decrease,

and the shift will be toward electricity, re-

newable power, and hydrogen. In 2050,

electricity’s share will rise from 20 to 30%

(Fig. 1). Transport accounts for the largest

reduction in energy demand, thanks to a

shift toward electric vehicles (EV), which

are up to three times more energy-efcient

than conventional internal combustion en-

gines. According to International Energy

Agency (2021), over 60% of the clean en-

ergy technology equipment market pre-

dicted will be battery-based in 2050. With

over 3 billion electric vehicles on the road

Figure 1. Final energy consumption by source and sector in the Net Zero Emission by 2050 Scenario.

Source: International Energy Agency (2021).

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007 EÍDOS 24

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and three terawatt-hours of battery stor-

age in 2050, batteries will play a key role

in the new energy economy.

2.2 Environmental Impacts of Traditional

Internal Combustion Engine Vehicles

Traditional internal combustion engine ve-

hicles (ICEVs) have signicant environmen-

tal impacts across their lifecycle, including

production, operation, and disposal. These

impacts contribute to various environmental

issues, including air pollution, greenhouse

gas emissions, and resource depletion.

ICEVs emit pollutants such as nitrogen ox-

ides (NOx), particulate matter (PM), carbon

monoxide (CO), and volatile organic com-

pounds (VOCs) during operation (Stocker &

Schraner, 2018). These pollutants degrade

air quality, leading to health problems such

as respiratory diseases, cardiovascular is-

sues, and premature mortality (Hoek et al.,

2013). Additionally, NOx and VOCs contrib-

ute to the formation of ground-level ozone

and smog, further exacerbating air pollu-

tion in urban areas (Cohen et al., 2017).

ICEVs are a signicant source of green-

house gas emissions, primarily carbon di-

oxide (CO2), resulting from the combustion

of fossil fuels (Schiermeier, 2020). These

emissions contribute to global warming and

climate change by trapping heat in the at-

mosphere, leading to adverse effects such

as rising temperatures, sea-level rise, and

extreme weather events (IPCC, 2018). The

transportation sector is one of the largest

contributors to global CO2 emissions, with

ICEVs playing a major role in this regard (Le

Quéré et al., 2018).

The production and operation of ICEVs

require signicant amounts of natural re-

sources, including petroleum, metals, and

water (Sullivan & Locey, 2016). The extrac-

tion and processing of these resources can

have adverse environmental impacts, such

as habitat destruction, water pollution, and

biodiversity loss (Mudd, 2010). Additional-

ly, the reliance on nite fossil fuel reserves

raises concerns about energy security and

resource depletion, necessitating a tran-

sition to alternative fuels and propulsion

technologies (IEA, 2019). ICEVs produce

noise pollution due to engine combustion,

exhaust systems, and tire-road interaction

(Basner et al., 2014). This noise can disrupt

ecosystems, interfere with wildlife commu-

nication and navigation, and adversely af-

fect human health and well-being, leading

to stress, sleep disturbances, and hearing

loss (Münzel et al., 2018).

The environmental impacts of traditional

ICEVs are signicant and multifaceted,

posing challenges to sustainability and

public health. Addressing these impacts

requires a transition to cleaner and more

efcient transportation alternatives, such

as electric vehicles (EVs), and the imple-

mentation of policies to promote sustain-

able mobility and reduce emissions.

2.3 Advantages and Disadvantages of

EVs Compared to Conventional Vehicles

Electric vehicles (EVs) offer several advan-

tages over conventional internal combus-

tion engine vehicles (ICEVs), but they also

have certain limitations. Understanding

these pros and cons is crucial for assess-

ing the overall impact of EV adoption on the

automotive industry and the environment.

EVs produce zero tailpipe emissions during

operation, reducing air pollution and green-

house gas emissions (Nikolaou et al., 2019).

This helps mitigate climate change and im-

proves local air quality, particularly in ur-

ban areas (Jacobson, 2009). Additionally,

EVs can be powered by renewable energy

sources, further reducing their carbon foot-

print (Abdelaziz et al., 2019). EVs have low-

er fuel and maintenance costs compared to

ICEVs. Electricity is generally cheaper than

gasoline, resulting in lower fuel expenses

over the vehicle's lifetime (Peters et al.,

2017). Moreover, EVs have fewer moving

parts and require less maintenance, lead-

ing to reduced servicing and repair costs

(Axsen et al., 2018). EVs are more energy

efcient than ICEVs due to the higher ef-

ciency of electric motors compared to in-

ternal combustion engines (Gallagher et

al., 2012). This translates to greater energy

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007

EÍDOS 24

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savings and reduced resource consump-

tion, contributing to sustainability and en-

ergy security (Miotti et al., 2016). EVs offer

smooth, quiet, and responsive driving ex-

periences due to their electric powertrains

(Rugh & Kuffner, 2013). They provide in-

stant torque and acceleration, making them

enjoyable to drive and suitable for urban

commuting (Sierzchula et al., 2014).

Most EVs have shorter driving ranges com-

pared to conventional ICEVs, which can be

a barrier to long-distance travel (Shao et al.,

2017). Range anxiety, or the fear of running

out of charge, remains a concern for some

consumers, especially in regions with inad-

equate charging infrastructure (Shaheen et

al., 2017). The availability and accessibil-

ity of charging infrastructure remain major

challenges for EV adoption (Caperello et

al., 2018). Public charging stations are less

common than gas stations, and charging

times can be longer, hindering the con-

venience of EV ownership (Stephens et

al., 2019). EV batteries are expensive to

manufacture and replace, contributing to

the upfront cost of EVs (Zhao et al., 2017).

Moreover, battery degradation over time

can affect vehicle performance and range,

necessitating costly replacements (Wu et

al., 2020). The production of EV batteries

requires rare earth metals and other criti-

cal materials, leading to concerns about

resource depletion and environmental im-

pacts associated with mining and process-

ing (Oladele et al., 2019). Additionally, the

disposal and recycling of spent EV batter-

ies pose challenges for waste manage-

ment and environmental sustainability (Kim

et al., 2016). While EVs offer numerous

advantages in terms of environmental per-

formance, operating costs, and driving ex-

perience, they also face challenges related

to driving range, charging infrastructure,

battery costs, and resource constraints.

Addressing these limitations will be essen-

tial for accelerating the transition to elec-

tric mobility and realizing the full potential

of EVs in the transportation sector. Figure

2 displays the impact of economic, social,

and environmental aspects on electric ve-

hicle adoption.

Lifecycle

Emissions

Battery

Production and

Materials

Energy Intensity

End-of-Life

Management

Environmental

Impacts of EVs

Social Impacts

of EVs

Economic

Impacts of EVs

Electric

Vehicle

Adoption

Accessibility

and Equity

Job Creation

and Economic

Development

Community

Engagement

and

Participation

Social

Acceptance

and Behavior

Change

Manufacturing

and Supply

Chain

Employment

and Labor

Markets

Energy

Markets and

Infrastructure

Government

Revenue and

Fiscal Policy

Figure 2. Chart of Impact of economic, social, and

environmental factors on electric vehicle adoption

2.4 Environmental Impacts of EVs

Electric vehicles (EVs) are often hailed as

a more environmentally friendly alternative

to conventional internal combustion engine

vehicles (ICEVs) due to their zero tailpipe

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007 EÍDOS 24

2024

emissions. However, the environmental im-

pacts of EVs extend beyond direct emis-

sions during operation and include various

aspects of their lifecycle, from manufac-

turing to end-of-life disposal. This section

provides an overview of the environmental

impacts associated with EVs, drawing on

recent research and literature.

2.4.1 Lifecycle Emissions: While EVs pro-

duce no tailpipe emissions during

operation, the environmental impact

of EVs depends on the source of

electricity used for charging. EVs

charged using electricity generated

from renewable sources have sig-

nicantly lower lifecycle emissions

compared to those charged using

fossil fuels (Hawkins et al., 2013).

However, the production of electric-

ity itself, along with battery manu-

facturing and materials extraction,

contributes to greenhouse gas

emissions and other environmental

pollutants.

2.4.2 Battery Production and Materials:

The manufacturing of EV batteries

involves resource-intensive pro-

cesses and materials, including lith-

ium, cobalt, and nickel, which are

often mined through environmental-

ly damaging practices (Dunn et al.,

2014). The extraction, processing,

and transportation of these raw ma-

terials can result in habitat destruc-

tion, water pollution, and ecosystem

degradation, particularly in regions

with lax environmental regulations.

2.4.3 Energy Intensity: EVs typically re-

quire more energy to produce than

ICEVs due to the complex manufac-

turing processes and the production

of high-capacity lithium-ion batter-

ies (Kang et al., 2016). Studies have

shown that the energy intensity of EV

production can result in higher envi-

ronmental burdens, including green-

house gas emissions, compared to

conventional vehicles over their life-

cycle (Ellingsen et al., 2014).

2.4.4 End-of-Life Management: The dis-

posal and recycling of EV batteries

present signicant environmental

challenges, including the potential

for toxic leachates and heavy metal

contamination (Dunn et al., 2016).

Proper end-of-life management

practices, such as battery recycling

and reuse, are essential to mitigate

environmental impacts and minimize

resource depletion. While EVs offer

the potential to reduce greenhouse

gas emissions and air pollution, their

environmental benets are contin-

gent upon various factors, includ-

ing the source of electricity, battery

manufacturing practices, and end-

of-life management strategies. Ad-

dressing these challenges through

sustainable energy generation, re-

sponsible resource extraction, and

effective recycling programs is cru-

cial to maximizing the environmental

benets of EV adoption.

2.4.5 Mitigating Greenhouse Gas Emis-

sions: The transition to electric ve-

hicles (EVs) is crucial for mitigating

greenhouse gas emissions and re-

ducing the environmental impact

of transportation. According to the

International Energy Agency (IEA,

2020), EVs have the potential to

reduce CO2 emissions from the

transportation sector by up to 70%

by 2050. EVs produce zero tailpipe

emissions, reducing the amount of

particulate matter, nitrogen oxides,

and other pollutants released into

the atmosphere. This is particularly

signicant in urban areas, where

air pollution is a major public health

concern. The production of EVs

also has a lower environmental im-

pact compared to traditional inter-

nal combustion engine vehicles. A

study by the Union of Concerned

Scientists (UCS, 2020) found that

the production of EVs generates ap-

proximately 60% fewer emissions

than traditional vehicles. Additional-

ly, the recycling of EV batteries has

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007

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the potential to reduce the environ-

mental impact of the entire lifecycle

of the vehicle.

2.4.6 Reducing Air Pollution: Air pollution

is a signicant public health con-

cern, with the World Health Organi-

zation (WHO) estimating that 9 out

of 10 people worldwide breathe pol-

luted air. Electric vehicles (EVs) play

a crucial role in reducing air pollu-

tion, as they produce zero tailpipe

emissions. According to the Interna-

tional Council on Clean Transporta-

tion (ICCT, 2020), EVs can reduce

particulate matter (PM), nitrogen

oxides (NOx), and other pollutants

by up to 90% compared to tradi-

tional internal combustion engine

vehicles. The benets of EVs in re-

ducing air pollution are particularly

signicant in urban areas, where

air pollution is often most severe. A

study by the University of California,

Berkeley (UC Berkeley, 2020) found

that widespread adoption of EVs

in California could reduce PM2.5

emissions by up to 70%, resulting in

signicant health benets and cost

savings. Furthermore, EVs can also

reduce emissions from the produc-

tion and distribution of fossil fuels.

A study by the National Renewable

Energy Laboratory (NREL, 2020)

found that EVs can reduce green-

house gas emissions from the pro-

duction and distribution of fuels by

up to 50%.

2.4.7 Conserving Natural Resources:

The production and use of electric

vehicles (EVs) offer signicant op-

portunities for conserving natural

resources. The extraction, rening,

and transportation of fossil fuels for

traditional internal combustion en-

gine vehicles have a signicant en-

vironmental impact. In contrast, EVs

can reduce the demand for fossil

fuels, conserving natural resources

and reducing the environmental

impact of extraction and transpor-

tation. The production of EVs also

has a lower environmental impact

compared to traditional vehicles. A

study by the Union of Concerned

Scientists (UCS, 2020) found that

the production of EVs generates ap-

proximately 60% fewer emissions

than traditional vehicles. Additional-

ly, the recycling of EV batteries has

the potential to reduce the environ-

mental impact of the entire lifecycle

of the vehicle. Furthermore, EVs can

also reduce the demand for natu-

ral resources such as water and

land. A study by the National Re-

newable Energy Laboratory (NREL,

2020) found that EVs can reduce

the demand for water by up to 70%

compared to traditional vehicles.

Additionally, the production of EVs

requires signicantly less land than

traditional vehicles, reducing the

impact on ecosystems and biodi-

versity. In conclusion, the transition

to electric vehicles offers signicant

opportunities for conserving natu-

ral resources, reducing the envi-

ronmental impact of extraction and

transportation, and promoting sus-

tainable development.

2.5 Social Impacts of EVs

The adoption of electric vehicles (EVs) not

only brings about environmental benets

but also signicant social impacts that ex-

tend to various aspects of society. This sec-

tion explores the social implications of EVs,

drawing on recent studies and literature.

2.5.1 Accessibility and Equity: EVs have

the potential to democratize trans-

portation by providing cleaner and

more sustainable mobility options

for a broader segment of the popu-

lation. Compared to traditional gas-

oline-powered vehicles, EVs offer

lower operating costs and reduced

maintenance requirements, making

them more accessible to individu-

als with limited nancial resources

(Hardman et al., 2019). Additionally,

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007 EÍDOS 24

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government incentives and subsidy

programs aimed at promoting EV

adoption can help address equity

concerns by ensuring that disad-

vantaged communities have access

to cleaner transportation options

(Stephenson et al., 2020).

2.5.2 Job Creation and Economic De-

velopment: The growing EV indus-

try contributes to job creation and

economic development in regions

involved in EV manufacturing, re-

search, and infrastructure devel-

opment. Studies have shown that

investments in EV production and

related supply chains can stimulate

local economies, create new em-

ployment opportunities, and support

the growth of high-tech industries

(Mallapragada et al., 2021). More-

over, the transition to electric mobil-

ity fosters innovation and entrepre-

neurship in areas such as battery

technology, charging infrastructure,

and smart mobility solutions, driving

economic growth and competitive-

ness (Zietsman et al., 2017).

2.5.3 Community Engagement and Par-

ticipation: EV adoption often fosters

community engagement and partici-

pation through initiatives such as EV

clubs, advocacy groups, and pub-

lic awareness campaigns. These

grassroots efforts play a crucial role

in promoting EV awareness, ad-

dressing consumer concerns, and

advocating for supportive policies

and regulations (Kahn et al., 2015).

Moreover, community-based EV

charging programs and collabora-

tive initiatives between local govern-

ments, businesses, and nonprot

organizations help expand EV infra-

structure and promote sustainable

transportation options at the grass-

roots level (Krause et al., 2018).

2.5.4 Social Acceptance and Behavior

Change: The widespread adoption

of EVs is reshaping societal atti-

tudes towards transportation and

fostering a shift towards sustain-

able mobility. As EVs become more

commonplace, societal norms sur-

rounding vehicle ownership, driv-

ing habits, and environmental con-

sciousness are evolving (Axsen et

al., 2019). Studies have shown that

positive experiences with EVs, cou-

pled with effective marketing and

public education campaigns, can

increase social acceptance, and

accelerate the transition to electric

mobility (Axsen et al., 2017). The

social impacts of electric vehicles

extend beyond individual transpor-

tation choices to encompass broad-

er issues of accessibility, equity,

economic development, community

engagement, and societal behavior

change. By addressing these social

dimensions, policymakers, industry

stakeholders, and community lead-

ers can maximize the societal ben-

ets of EV adoption and promote

a more sustainable and inclusive

transportation system.

2.6 Economic Impacts of EVs

The transition to electric vehicles (EVs) is

reshaping the automotive industry and has

profound economic implications at various

levels. This section examines the economic

impacts of EVs, drawing on recent studies

and literature.

2.6.1 Manufacturing and Supply Chain:

The shift towards EV production

has led to signicant investments in

manufacturing facilities and supply

chain development. As automakers

ramp up EV production, there is a

growing demand for batteries, elec-

tric drivetrains, and other EV com-

ponents (Schäfer et al., 2018). This

has prompted the establishment of

new manufacturing plants and the

expansion of existing ones, creating

jobs and economic opportunities in

regions with a strong EV manufac-

turing presence (Hardman et al.,

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2019). Additionally, the localization

of EV production and supply chains

can enhance industrial competitive-

ness and resilience, reducing reli-

ance on imported components and

mitigating supply chain risks (Nealer

et al., 2020).

2.6.2 Employment and Labor Markets:

The growth of the EV industry has

positive implications for employment

and labor markets. Studies indicate

that investments in EV manufactur-

ing and related sectors generate

job opportunities across the entire

value chain, from research and

development to production, sales,

and aftermarket services (Deloitte,

2020). Moreover, the transition to

electric mobility requires a skilled

workforce in areas such as battery

technology, electric vehicle design,

and software engineering, driving

demand for specialized talent and

fostering innovation (Hardman et

al., 2019). However, the economic

impact on traditional automotive

industries and associated sectors

may vary, potentially leading to job

displacement and workforce transi-

tions (Stephenson et al., 2020).

2.6.3 Energy Markets and Infrastructure:

The widespread adoption of EVs

has implications for energy mar-

kets and infrastructure investment.

EVs increase electricity demand,

particularly during peak charging

periods, which can strain existing

grid infrastructure and necessitate

upgrades to accommodate higher

loads (Axsen et al., 2019). Howev-

er, advancements in smart charg-

ing technologies, grid integration

strategies, and renewable energy

deployment can mitigate the impact

of EVs on grid stability and enhance

energy efciency (Hardman et al.,

2019). Moreover, investments in

EV charging infrastructure, includ-

ing public charging stations, fast

chargers, and smart grid solutions,

present economic opportunities for

utilities, technology providers, and

infrastructure developers (Nealer

et al., 2020).

2.6.4 Government Revenue and Fiscal

Policy: The adoption of EVs has im-

plications for government revenue

and scal policy, particularly regard-

ing fuel tax revenue and incentives

for EV adoption. As EVs replace

gasoline and diesel vehicles, tradi-

tional sources of revenue derived

from fuel taxes may decline, posing

challenges for transportation fund-

ing and infrastructure maintenance

(Deloitte, 2020). To address this,

policymakers may consider imple-

menting alternative funding mecha-

nisms, such as road usage charges

or mileage-based fees, to ensure

sustainable nancing for transpor-

tation infrastructure (Schäfer et al.,

2018). Additionally, government in-

centives and subsidies for EV adop-

tion, such as purchase rebates, tax

credits, and reduced registration

fees, inuence consumer behav-

ior and market dynamics, shaping

the economic viability of EVs (Ste-

phenson et al., 2020). The eco-

nomic impacts of electric vehicles

extend beyond the automotive sec-

tor to encompass broader aspects

of manufacturing, employment,

energy markets, and scal policy.

By understanding and addressing

these economic dimensions, policy-

makers, industry stakeholders, and

communities can navigate the tran-

sition to electric mobility and capi-

talize on the economic opportunities

presented by EV adoption.

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2.7 Investments in EV Infrastructure and

its Economic Implications

Investments in Electric Vehicle (EV) infra-

structure carry profound economic impli-

cations, shaping various sectors and inu-

encing economic growth. Investments in EV

infrastructure, including charging stations,

battery manufacturing facilities, and grid

enhancements, create employment oppor-

tunities across multiple industries (IRENA,

2019). Job creation occurs in construction,

engineering, manufacturing, maintenance,

and operations of EV infrastructure, con-

tributing to local economies and support-

ing skilled and unskilled labor (EY, 2020).

EV infrastructure investments stimulate

economic activity by attracting both public

and private investments, fostering innova-

tion, and supporting the growth of associ-

ated industries (Deloitte, 2020).

The establishment of charging networks

and related services generates economic

growth by driving consumer spending

and fostering business development (IEA,

2021). Investments in EV infrastructure fa-

cilitates the expansion of the EV industry

by addressing concerns like range anxiety,

enhancing charging accessibility, and pro-

moting EV adoption (EY, 2020). Supportive

policies and incentives, such as subsidies

and tax credits, encourage investments in

charging infrastructure, accelerating the

adoption of EVs, and fostering industry

growth (IRENA, 2019). EV infrastructure

investments drive technological innovation

and research in areas such as battery tech-

nology, smart grid integration, and energy

storage solutions (IEA, 2021). Research

and development initiatives supported

by infrastructure investments lead to ad-

vancements in EV charging technologies,

grid management systems, and renewable

energy integration, enhancing economic

competitiveness (Deloitte, 2020).

Investments in EV infrastructure creates

revenue streams through charging fees,

electricity sales, and value-added servic-

es, unlocking new business opportunities

and revenue sources (EY, 2020). Charging

networks offer potential returns on invest-

ment through user fees, subscription mod-

els, and partnerships with utilities and ser-

vice providers, contributing to economic

viability (IRENA, 2019). Investments in EV

infrastructure has signicant economic im-

plications, driving job creation, stimulating

economic growth, fostering industry ex-

pansion, promoting technological innova-

tion, and generating revenue opportunities.

As governments and businesses prioritize

sustainable transportation, strategic invest-

ments in EV infrastructure are pivotal for

shaping future economies.

Different countries around the world have

concentrated on the improvement of do-

mestic strategies associated with the issue

of energy to achieve higher sustainability

in its consumption as well as production

procedures (Mukherjee and Ryan, 2020).

The transport sector is an integrated part of

the current societies and contributes con-

siderably to global economic development

(Li et al., 2017). Studies show the recent

contribution of the transport system in more

than 55% of the oil consumption and ap-

proximately 25% of CO2 emissions (Adnan

et al., 2016). The signicant growth in own-

ing and using personal cars can be men-

tioned as an important factor leading to

environmental pollution (Hao et al., 2016).

The transport sector emits one-fourth of

the overall greenhouse gases around the

world, which is predicted to increase from

23 to 50 percent by 2030 (IEA, (2019)). Dif-

ferent governments have currently focused

on the promotion of environmental friendly

EVs instead of internal combustion engine

vehicles (ICEVs) to deal with the problem

of greenhouse gases as well as danger-

ous ne particles (Chu et al., 2019). Thus,

electric vehicles consisting of battery EVs

(BEVs), plug-in hybrid EVs (PHEVs), and

hybrid EVs (HEVs) are considered as a suit-

able solution to the problem of greenhouse

gases emissions and other problems asso-

ciated with the transport system. Further-

more, substantial reduction of air pollution

caused by transportation is an advantage

of EVs, besides the decrease in green-

house gases emissions and related to cli-

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mate change and decrease in consuming

fossil fuels (Egbue et al., 2017). Accord-

ingly, developing EVs can be an integrated

part of the global attempts to achieve the

goal of net-zero, which is possible, given

the signicant capability of EVs in the im-

provement of energy output, reduction of

greenhouse gases emissions, and provid-

ing diverse energy resources toward trans-

port sustainability (Zhang et al., 2018).

Electric vehicles can be somehow regard-

ed as green products due to their possible

advantages for the environment through

the adoption of new energies along with

enhancement of their output (Wu et al.,

2019). Nevertheless, EVs distribution has

just started. The technology associated

with these vehicles is recently under devel-

opment on one hand, and they need to ob-

tain more competitiveness against ICEVs

from a nancial perspective (Mukherjee

and Ryan, 2020).

According to study of Zhou et al (2024),

the EVs charging load peak overlaps with

the conventional load peak. The greater

the number of the EVs, the greater the im-

pact on reliability. Therefore, a reasonable

regulation of EVs, DG (Distributed genera-

tion) and ESS (Energy storage system) is

undoubtedly conducive to large-scale EVs

connection to the microgrid. Another study

by Nasab et al (2024) showed that the tech-

nical characteristics of the network have

improved in the presence of electric ve-

hicles and distributed production sources.

Similarly, the use of distributed generation

reduces equipment costs and undistribut-

ed energy in the system. However, 10,000

EVs, considered an uncontrolled load, has

caused an increase in undistributed energy

and the cost of equipment required for net-

work development by approximately 5%.

A study of Hui et al (2024), displayed that

EV charging stations autonomously decide

their charging and discharging processes,

bringing benets to the park while also re-

ducing its carbon emissions. Furthermore,

models based on exible storage load

characteristic brought about by EV exhibit

strong robustness and extendibility, pro-

viding surplus energy storage for future

planning in parks. Also, the incorporation

of models based on exible storage load

characteristic brought about by EV can

enhance the exibility of loads from park

users’ side, lower their energy costs and

provide insights for upper level microgrid

operators’ pricing strategies.

According to the study of Chen et al (2024),

the nding shows that while maintaining a

relatively stable system cost, the carbon

emissions are reduced by 1.60 t, and the

uctuation of the load curve is reduced by

21.5%. Therefore, the system has achieved

low-carbon and stable operation while

maintaining economic efciency. Another

study by Ganz et al (2024), the nding

shows that the use case of PV self-con-

sumption optimization with an EV makes in-

stalling a PV system and the investment in

an EV almost always more protable. Thus,

the use case is positive from the user’s per-

spective. Furthermore, the actor-driven use

case of PV self-consumption optimization in

Germany can have a slightly positive effect

on the energy system; thus, a promotion of

this use case by the German government

can help the energy transition in Germany.

Meanwhile, Pirmana et al (2023), it is evi-

dent from the results of Indonesia that bat-

teries and EV production are economically

benecial. The results show that the electric

vehicle production increases productivity,

gross value-added, and job creation with a

relatively small impact on the environment.

A study of España et al (2024), By evaluat-

ing technical, economic, and environmen-

tal aspects with a realistic approach based

on simulation results that considered trafc

conditions and network operational param-

eters, helpful benchmarking is obtained

to promote EVs among owners of public

vehicles in the city and concludes that EV

adoption for individual public transporta-

tion in Pasto (Colombia) is notably advan-

tageous from a nancial perspective. The

work of Shang et al (2024), this study, es-

tablish a comprehensive life cycle assess-

ment model for vehicles to analyze the gap

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in air pollutant and greenhouse gas emis-

sions between electric vehicles and inter-

nal combustion engine vehicles (ICEVs)

in China. Results reveal that, compared to

ICEVs, EVs reduce life cycle emissions of

CO 2 by 12%, NOx by 69%, and VOCs by

9%. Primary constraints on EVs in emission

reduction are traced to raw material and

component production, notably lithium bat-

teries. By 2025, under the low carbon EVs

policy scenario, widespread EV production

and sales could cut lifecycle emissions by

3.55 million tons of CO2, 3,6289 tons of

NOx, and 4315 tons of VOCs. During the

driving stage, these indicators contribute

495%, 124%, and 253%, respectively, to

total emission reduction throughout the

lifecycle.

The research of de Wolf et al (2024), ex-

tend a multimodal transport model to sim-

ulate an increase of the market share of

electric vehicles in the north of France. The

study nd that the emissions of pollutant

gases decrease in comparable proportion

to the market share of the electric vehicles.

When only users with shorter trips switch

to electric vehicles, the impact is limited

and demand for charging stations is small

since most users will charge by night at

home. When the government can target

users with longer trips, the impact can be

higher by more than a factor of two. But,

in this case, our model shows that it is im-

portant to increase the number of charging

stations with an optimized deployment for

their accessibility.

2.8 A Comparative Analysis of Energy

Consumption Greenhouse Gas Emis-

sions, and Air Pollution

Electric vehicles offer a higher level of en-

ergy efciency compared to traditional fos-

sil fuel-powered vehicles. Research (Smith

et al., 2013; Hawkins et al., 2013) has indi-

cated that EVs convert a greater portion of

the energy stored in their batteries into ac-

tual propulsion, leading to reduced energy

consumption per kilometer traveled. On

the other hand, internal combustion engine

vehicles face energy losses due to factors

like heat dissipation and mechanical fric-

tion. EVs have the potential to signicantly

decrease GHG emissions in comparison

to traditional vehicles. Studies (Hawkins et

al., 2013; Zhang et al., 2018) have shown

that EVs emit fewer direct emissions dur-

ing operation as they do not burn fossil fu-

els. Nevertheless, the total GHG emissions

linked to EVs rely on the electricity genera-

tion mix in a specic region. In regions with

a high share of renewable energy sources

like wind or solar, EVs display lower life-

cycle emissions than conventional vehicles

(Ramirez-Vallejo et al., 2020). EVs play a

role in reducing localized air pollution, es-

pecially in urban areas. Conventional ve-

hicles release pollutants such as nitrogen

oxides (NOx), particulate matter (PM), and

volatile organic compounds (VOCs) during

combustion. In contrast, EVs produce no

tailpipe emissions, leading to enhanced air

quality and public health benets (Franco

et al., 2020). However, it is crucial to con-

sider the upstream emissions related to

electricity generation, as certain power

sources, such as coal-red power plants,

may still contribute to air pollution (Liu

et al., 2020).

2.9 Malaysia Case

Malaysia has experienced a sharp increase

in the energy demands of the transport sys-

tem from 1990 to 2012 when 36.8% of the

share of the energy demand was reported

as the highest gure compared to all other

sectors (Sang and Bekhet, 2015). Never-

theless, in developing nations, including

the Malaysian context, governments have

taken the benets of PHEVs into account,

taking actions toward the promotion of their

adoption (Adnan et al., 2018). Although the

large-scale application of EVs is accompa-

nied by different advantages including im-

provement of air quality, there is still a low

rate of EVs adoption in a signicant num-

ber of countries (Langbroek et al., 2019).

This is especially true about the Malaysian

context in which overall emissions have

exceeded those of Asia and the univer-

sal average; unfortunately, the Malaysian

population is usually unaware of the effects

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007

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of greenhouse gases emissions, and this

is obviously observed in the lower rates of

EVs adoption (Al Mamun et al., 2019).

Since PHEVs are relatively novel technolo-

gies in the Malaysian context, no research

studies or analysis have been previously

performed on the drivers in Malaysia to

evaluate the public acceptance and their

consumers’ intentions to adopt this new

and recently emerging technology (Adnan

et al., 2018; Adnan et al., 2016; Sang and

Bekhet, 2015). Furthermore, even though

different research streams have concen-

trated on the effects that other alternative

vehicles may impose on the environment,

there is no sufcient research on the social

as well as economic aspects of adopting

this novel technology (Onat et al., 2015).

Consequently, one of the aims of the pres-

ent paper is to review of the effects of

economic, environmental, and social di-

mensions on the development of policy

procedures that encourage the adoption of

alternative vehicles at the national level.

The new environmentally friendly technolo-

gies can be eventually successful provided

depending on consumers’ knowledge, pri-

orities and evaluation (Axsen et al., 2013).

The importance of environmental aspects

can stimulate the utilization of other vehi-

cles which use alternative fuels (Clinton and

Steinberg, 2019). Studies have indicated

that environmental protection is usually a

critical objective in humans’ lives. Further-

more, people consider outcomes associ-

ated with the environment when they make

selections (Noppers et al., 2014). Mean-

time, EVs environmental and economic ef-

fects are dependent on the fraction of con-

sumers from whose perspective EVs have

the desired capabilities, and also on the

way these technologies are utilized (Tamor

et al., 2013). Electric vehicles or EVs are

presented in this study as an instance of

novel environmental-friendly technologies

(Axsen et al., 2013). Even though consider-

able research has been carried out on the

environmental effects of EVs, no sufcient

research can be found on the social as well

as economic aspects of these vehicles. In

addition, a considerable proportion of eco-

nomic analyses have been restricted to

analyzing life cycle costs with no consid-

eration of the economic effects. Thus, the

present study aims at promoting literature

on the adoption of EVs and research on

their sustainability which considers both

adoption antecedent and adoption conse-

quence factors. It aims to indicate support-

ing literature including economic and social

dimensions may allow for the development

of policy procedures which encourage EVs

adoption at national level.

3. POLICY AND REGULATORY

LANDSCAPE ELECTRIC VEHICLES (EVS)

The policy and regulatory landscape sur-

rounding Electric Vehicles (EVs) is a mul-

tifaceted domain inuenced by diverse

factors such as environmental concerns,

technological advancements, economic

considerations, and geopolitical dynamics.

Governments worldwide offer various in-

centives to promote EV adoption, including

tax credits, rebates, grants, and subsidies

for purchasing EVs (IEA, 2021). Incen-

tives may also extend to EV infrastructure

development, such as grants for installing

charging stations and funding for research

and development (Deloitte, 2020). Stricter

emission standards and regulations are

being implemented globally to curb green-

house gas emissions and air pollution,

thereby encouraging the transition to zero-

emission vehicles like EVs (EPA, 2021).

Regulatory measures, such as Zero Emis-

sion Vehicle (ZEV) mandates and emis-

sions trading schemes, aim to incentivize

automakers to produce EVs and reduce

carbon emissions (California Air Resources

Board, 2021). Governments and regulatory

bodies prioritize the development of EV

charging infrastructure to address range

anxiety and facilitate widespread adop-

tion (IEA, 2021). Regulations often include

mandates for installing charging stations in

public areas, commercial buildings, and

residential complexes, as well as stan-

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007 EÍDOS 24

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dards for interoperability and accessibility

(IRENA, 2019).

Policies focus on integrating EV charging

infrastructure with the electricity grid to

manage peak demand, optimize charg-

ing times, and enhance grid stability (IEA,

2021). Regulatory frameworks may pro-

mote smart charging solutions, time-of-use

pricing, and demand response programs

to incentivize off-peak charging and sup-

port grid balancing (Deloitte, 2020). Gov-

ernments allocate funding for research and

development initiatives aimed at advanc-

ing EV technology, battery efciency, and

charging infrastructure innovation (IRENA,

2019). Regulatory support for public-pri-

vate partnerships, collaborative research

projects, and pilot programs accelerates

innovation and commercialization in the

EV ecosystem (EY, 2020). Global initiatives

and agreements, such as the Paris Agree-

ment and Sustainable Development Goals,

foster international cooperation to address

climate change and promote sustainable

transportation, including EV adoption (UN,

2021). International standards and harmo-

nization efforts ensure consistency in EV

regulations, vehicle performance require-

ments, and charging infrastructure proto-

cols across different regions (IEA, 2021).

The policy and regulatory landscape on

EVs are characterized by a diverse range

of measures aimed at promoting EV adop-

tion, addressing infrastructure needs, and

mitigating environmental impacts.

4. CHALLENGES AND OPPORTUNITIES

IN EV REGULATION

Addressing challenges and leveraging op-

portunities in Electric Vehicle (EV) regu-

lation is crucial for fostering sustainable

transportation. EV regulation often faces

complexity due to diverse national, region-

al, and local regulations, hindering stan-

dardization and interoperability (Ramas-

wami et al., 2017).

Harmonizing regulations across jurisdic-

tions and streamlining compliance pro-

cesses can facilitate EV market growth and

cross-border mobility (Enevoldsen et al.,

2020). Regulations must address the de-

velopment of EV charging infrastructure,

including standards for charger types,

installation requirements, and interoper-

ability (Ahrentzen et al., 2020). Ensuring

adequate and accessible charging infra-

structure is essential for overcoming range

anxiety and promoting EV adoption (Niko-

las et al., 2021). EV charging can strain

electricity grids, necessitating regulations

for grid integration, smart charging, and

demand response mechanisms (He et

al., 2018). Dynamic pricing, grid-friendly

charging protocols, and incentives for off-

peak charging can optimize grid utiliza-

tion and minimize infrastructure upgrades

(Zhang et al., 2020).

Regulations should ensure transparency

and consumer protection in EV sales, leas-

ing, and servicing, addressing issues such

as battery warranties and maintenance

costs (Tol et al., 2019). Clear guidelines on

EV performance metrics, charging costs,

and service standards can enhance con-

sumer condence and satisfaction (Ba-

nerjee et al., 2021). EV regulations must

incorporate environmental standards, in-

cluding lifecycle assessments, emissions

reductions targets, and sustainable mate-

rials sourcing (Klöckner et al., 2019). Man-

dates for eco-labeling, emissions testing,

and recycling requirements can promote

environmental stewardship throughout the

EV lifecycle (Choi et al., 2020). Regula-

tory frameworks should encourage in-

novation and research in EV technology,

including incentives for R&D investment,

technology demonstration projects, and

pilot programs (Van Koten et al., 2021).

Collaborative platforms for industry stake-

holders, academia, and policymakers can

foster knowledge exchange and acceler-

ate technological advancements (Galla-

gher et al., 2017). Addressing these chal-

lenges and capitalizing on opportunities

in EV regulation can pave the way for sus-

tainable, equitable, and resilient transpor-

tation systems.

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5. SUCCESSFUL EV ADOPTION

INITIATIVES IN DIFFERENT REGIONS

OR INDUSTRIES

Several regions and industries have imple-

mented successful Electric Vehicle (EV)

adoption initiatives, showcasing the versatil-

ity and potential of EVs in various contexts.

Nordic countries, including Norway, Swe-

den, Denmark, Finland, and Iceland. Com-

prehensive incentive programs, such as

tax exemptions, toll discounts, free park-

ing, and access to bus lanes, coupled with

extensive charging infrastructure deploy-

ment. Norway has become a global leader

in EV adoption, with EVs accounting for

a signicant percentage of new vehicle

sales. This success demonstrates the ef-

fectiveness of holistic incentive packages

in accelerating EV uptake (IEA, 2021).

In China region, substantial government

subsidies for EV purchases, investment

in charging infrastructure, and policies

promoting domestic EV manufacturing.

China has emerged as the world's larg-

est EV market, with millions of EVs sold

annually. The country's aggressive incen-

tives and infrastructure development have

played a crucial role in driving EV adop-

tion (Reuters, 2021). European Union (EU),

Stringent emission regulations and targets,

along with investment in EV charging infra-

structure under the European Green Deal.

The EU has set ambitious targets to reduce

emissions and increase the share of EVs

on the road. The regulatory framework en-

courages automakers to produce electric

and hybrid vehicles, fostering innovation

and competition in the EV market (Euro-

pean Commission, 2021). These success-

ful EV adoption initiatives demonstrate the

importance of comprehensive strategies,

including incentives, infrastructure devel-

opment, regulatory support, and industry

collaboration, in accelerating the transition

to electric transportation.

6. IMPLICATIONS OF THE STUDY

The present study had some theoretical

implications as follows. First of all, the re-

search regarding the adoption of EVs has

been extended from an environmentally

friendly point of view. Previous research

has taken the adoption of EVs as ratio-

nal behavior, overlooking the inuence

of users’ social, as well as psychological

features, on their intention to adopt these

technologies. Accordingly, the adoption

of EVs has been regarded as both self-

interest and unselsh behavior, while the

impacts of personal norms, attitudes,

subjective norms, and perceived behav-

ioral control on the intentions to adopt

EVs are also explored. Meantime, the ef-

fects of adopting EVs on sustainability

aspects have been also dealt with. There

are signicant implications for policymak-

ers to promote the evolution toward sus-

tainability for which higher shares of EVs

seem to be the best strategy. Moreover,

the ndings of the present study are use-

ful for governmental authorities as well

as vehicle sellers. In this regard, the ef-

fects of including economic and social di-

mensions on the development of efcient

policies have been illustrated to motivate

the adoption of such technologies nation-

ally. Furthermore, signicant insights are

provided for policymakers to consider

methods for estimation of optimum vehi-

cle distribution procedures according to

different environmental, social, and eco-

nomic preferences. Although the integra-

tion of EVs with the current electric as well

as transportation infrastructures in accor-

dance with sustainability issues and in the

most appropriate way is still uncertain,

adoption of these technologies is growing

steadily. Nevertheless, insufcient power-

ful incentives along with other detrimental

effects of the market presentation have

led Malaysia to lag behind other countries

regarding the amount of EVs adoption.

Meantime, it is noteworthy that promoting

EVs with the aim of reducing greenhouse

gases emissions resulting from transpor-

tation should not result in other unfavor-

able outcomes; therefore, conducting

careful, scenario-based environmental

evaluations of the suggested technologies

seems essential prior to their large-scale

adoption (Hawkins et al., 2012).

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007 EÍDOS 24

2024

7. FUTURE POLICY DIRECTIONS

TO PROMOTE EV ADOPTION AND

SUSTAINABILITY

Future policy directions to promote Elec-

tric Vehicle (EV) adoption and sustainabil-

ity should align with global climate goals

and prioritize the transition to clean trans-

portation.

Governments should set ambitious emis-

sion reduction targets, including phasing

out internal combustion engine vehicles

(ICEVs) and incentivizing EV adoption to

achieve net-zero emissions (Nauclér et al.,

2020). Long-term policy frameworks with

clear milestones can provide certainty for

investors and drive innovation in EV technol-

ogy and infrastructure (Klenert et al., 2018).

Continued nancial incentives, such as tax

credits, rebates, and purchase subsidies,

can lower the upfront costs of EVs and ac-

celerate market penetration (Goulder et al.,

2019). Targeted incentives for low-income

households and eet operators can en-

sure equitable access to EVs and address

socio-economic disparities (Stokes et al.,

2021). Policies should prioritize the expan-

sion of EV charging infrastructure, includ-

ing fast chargers along highways, urban

charging hubs, and workplace charging

stations (Tongia et al., 2019). Public-pri-

vate partnerships and innovative nancing

mechanisms can facilitate infrastructure

deployment and overcome investment bar-

riers (Hoicka et al., 2021).

Governments should develop supportive

regulatory frameworks, including vehicle

emissions standards, fuel economy regu-

lations, and mandates for zero-emission

vehicle sales (Dagher et al., 2020). Harmo-

nizing regulations across jurisdictions and

promoting interoperability of EV charging

networks can facilitate cross-border mobil-

ity and market growth (Rogers et al., 2019).

Increased investment in research and de-

velopment (R&D) is essential to drive in-

novation in EV technology, battery storage,

and charging infrastructure (Horbach et

al., 2020). Collaboration between govern-

ments, industry stakeholders, and research

institutions can accelerate technology ad-

vancements and address key challenges in

EV adoption (Sovacool et al., 2018). Public

education campaigns and awareness pro-

grams can dispel myths about EVs, pro-

mote their benets, and address consumer

concerns about range anxiety and charg-

ing infrastructure (Dobson et al., 2021).

Workforce training programs and vocation-

al education initiatives can prepare tech-

nicians and engineers for the growing EV

industry and support job creation (Bauer

et al., 2020). By implementing these future

policy directions, governments can foster

an enabling environment for EV adoption,

drive sustainable transportation solutions,

and mitigate climate change impacts.

8.CONCLUSION

Electric vehicles (EVs) represent a pivotal

solution for addressing numerous chal-

lenges related to transportation, sustain-

ability, and energy security. As highlighted

throughout this discourse, EVs offer signi-

cant environmental, social, and economic

benets compared to traditional internal

combustion engine vehicles. They con-

tribute to reducing greenhouse gas emis-

sions, improving air quality, and fostering

economic growth through job creation and

technological innovation. Despite the sub-

stantial advantages of EVs, several chal-

lenges remain, including range anxiety,

charging infrastructure limitations, and

high initial costs. However, ongoing ad-

vancements in battery technology, charg-

ing infrastructure development, and sup-

portive government policies are gradually

mitigating these barriers and accelerating

EV adoption worldwide. Looking ahead,

the widespread adoption of EVs will require

continued collaboration among policymak-

ers, industry stakeholders, and communi-

ties to address infrastructure needs, incen-

tivize consumers, and promote sustainable

transportation practices. By embracing

innovation, investing in infrastructure, and

fostering public awareness, we can realize

the full potential of EVs to create a cleaner,

healthier, and more sustainable future for

generations to come.

FARAJNEZHAD, et al. - Impact of Economic, Social, And Environmental Factors on Electric Vehicle Adoption: A Review. pp. 39-62 ISSN:1390-5007

EÍDOS 24

2024

In summary, EVs represent a transforma-

tive technology that has the potential to

revolutionize the transportation sector and

contribute signicantly to global efforts to

combat climate change and promote sus-

tainable development. The widespread

adoption of EVs has the potential to sig-

nicantly reduce carbon emissions and

improve air quality in the long term. As the

global transportation sector continues to

evolve, it is essential to prioritize the de-

velopment of sustainable EV technologies,

charging infrastructure, and energy sourc-

es to ensure a low-carbon future.

Limitations

While this review aims to provide a com-

prehensive overview of the impact of eco-

nomic, social, and environmental factors on

EV adoption, there are several limitations to

consider when interpreting the ndings.

Firstly, the majority of the studies reviewed

were based on data from developed coun-

tries, which may not be representative of

the global EV market. The adoption of EVs

in developing countries may be inuenced

by different factors, such as limited access

to charging infrastructure and varying gov-

ernment policies. Future research should

aim to include a more diverse range of

countries and contexts to better understand

the global implications of EV adoption.

Secondly, the review was limited to stud-

ies published in English, which may have

excluded relevant research published in

other languages. This limitation may have

resulted in an incomplete understanding of

the global EV market and its complexities.

Thirdly, the review focused primarily on

the impact of economic, social, and envi-

ronmental factors on EV adoption, but did

not explore the reciprocal relationships be-

tween these factors. For example, the im-

pact of EV adoption on economic growth,

social norms, and environmental sustain-

ability may be signicant, but these rela-

tionships were not explored in this review.

Future research should aim to investigate

these reciprocal relationships to provide a

more comprehensive understanding of the

EV market. Fourthly, the review was based

on a snapshot of the EV market at a par-

ticular point in time, and the ndings may

not be generalizable to future scenarios.

The EV market is rapidly evolving, with new

technologies and policies emerging regu-

larly. Future research should aim to conduct

longitudinal studies to capture the dynamic

nature of the EV market. Finally, the review

relied heavily on secondary data sources,

which may have introduced biases and

limitations. Future research should aim to

collect primary data through surveys, inter-

views, or experiments to provide more ac-

curate and reliable ndings. In conclusion,

while this review provides a comprehen-

sive overview of the impact of economic,

social, and environmental factors on EV

adoption, it is essential to acknowledge the

limitations of this study and future research

should aim to address these limitations to

provide a more complete understanding of

the EV market.

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