Main Article Content
Abstract
This study investigates the effect of government economic incentives on electric vehicles (EV) in the metropolitan Jakarta area (Jakarta, Bogor, Depok, Tangerang, Bekasi). A survey was collected from 121 prospective and current EV users in Jakarta and its neighboring regions area. The collection was then analyzed using logistic regression. The research finds that EV subsidy, EV infrastructure, EV tax deduction, and age have significant effects on EV adoption. According to this stance, higher EV subsidy propels more EV adoption. In addition, respondents significantly consider the availability of EV infrastructure for EV adoption. Our study also reveals that the younger the age, the higher the preference for EV adoption. Furthermore, the lower the tax deduction, the increasing adoption of electric vehicles. Those variables are important factors to amplify EV adoption among our research respondents. This study implies that potential consumers are aware of and react positively to policy efforts to reduce upfront and maintenance costs for the transition to EV cars in the metropolitan Jakarta area.
Keywords
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Jurnal Ekonomi Pembangunan is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License..
References
- Adiatma, J. C., & Marciano, I. (2020). The Role of Electric Vehicles in Decarbonizing Indonesia’s Road Transport Sector. Institute for Essential Service Reform.
- Barahona, N., Gallego, F., & Montero, J. (2020). Vintage-Specific Driving Restrictions. The Review of Economic Studies, 87(4), 1646–1682. https://doi.org/10.1093/restud/rdz031
- Bjerkan, K., Nørbech, T., & Nordtømme, M. (2016). Incentives for promoting Battery Electric Vehicle (BEV) adoption in Norway. Transportation Research Part D: Transport and Environment, 43, 169–180. https://doi.org/10.1016/j.trd.2015.12.002
- Candra, C. (2022). Evaluation of Barriers to Electric Vehicle Adoption in Indonesia through Grey Ordinal Priority Approach. International Journal of Grey Systems, 2(1), 38–56. https://doi.org/10.52812/ijgs.46
- Davis, L. (2008). The Effect of Driving Restrictions on Air Quality in Mexico City. Journal of Political Economy, 116(1), 38–81. https://doi.org/10.1086/529398
- Daziano, R., Sarrias, M., & Leard, B. (2017). Are consumers willing to pay to let cars drive for them? Analyzing response to autonomous vehicles. Transportation Research Part C: Emerging Technologies, 78, 150–164. https://doi.org/10.1016/j.trc.2017.03.003
- Edgar, T. W., & Manz, D. O. (2017). Exploratory Study (Chapter 4). In Research Methods for Cyber Security, 95–130. https://doi.org/10.1016/B978-0-12-805349-2.00004-2
- Falbo, P., Pelizzari, C., & Rizzini, G. (2022). Optimal incentive for electric vehicle adoption. Energy Economics, 114, 106270. https://doi.org/10.1016/j.eneco.2022.106270
- Febransyah, A. (2021). Predicting Purchase Intention towards Battery Electric Vehicles: A Case of Indonesian Market. World Electric Vehicle Journal, 12(4), 240. https://doi.org/10.3390/wevj12040240
- Figenbaum, E., Kolbenstvedt, M., & Elvebakk, B. (2014). Electric Vehicles–environmental, economic, and practical aspects. As seen by current and potential users, (1329). TOI Report 1329/2014. https://www.toi.no/getfile.php/1337250-1411472277/Publikasjoner/TØI rapporter/2014/1329-2014/1329-2014-el.pdf
- Gallego, F., Montero, J., & Salas, C. (2013). The effect of transport policies on car use: Evidence from Latin American cities. Journal of Public Economics, 107, 47–62. https://doi.org/10.1016/j.jpubeco.2013.08.007
- Gass, V., Schmidt, J., & Schmid, E. (2014). Analysis of alternative policy instruments to promote electric vehicles in Austria. Renewable Energy, 61, 96–101. https://doi.org/10.1016/j.renene.2012.08.012
- Gong, S., Ardeshiri, A., & Rashidi, T. (2020). Impact of government incentives on the market penetration of electric vehicles in Australia. Transportation Research Part D: Transport and Environment, 83, 102353. https://doi.org/10.1016/j.trd.2020.102353
- Gunawan, I., Redi, A., Santosa, A., Maghfiroh, M., Pandyaswargo, A. H., & Kurniawan, A. C. (2022). Determinants of Customer Intentions to Use Electric Vehicle in Indonesia: An Integrated Model Analysis. Sustainability, 14(4), 1972. https://doi.org/10.3390/su14041972
- Haidar, B., & Rojas, M. (2022). The relationship between public charging infrastructure deployment and other socio-economic factors and electric vehicle adoption in France. Research in Transportation Economics, 95, 101208. https://doi.org/10.1016/j.retrec.2022.101208
- Hardman, S. (2021). Investigating the decision to travel more in a partially automated electric vehicle. Transportation Research Part D: Transport and Environment, 96, 102884. https://doi.org/10.1016/j.trd.2021.102884
- Hardman, S., & Sperling, D. (2020, July). The need for sustainable and persistent incentives for electric vehicles. In Forum, The Oxford Institute for Energy Studies (Vol. 25, p. 27).
- Hilbe, J. (2016). Practical Guide to Logistic Regression. Chapman and Hall/CRC. https://doi.org/10.1201/b18678
- Jenn, A., Springel, K., & Gopal, A. (2018). Effectiveness of electric vehicle incentives in the United States. Energy Policy, 119, 349–356. https://doi.org/10.1016/j.enpol.2018.04.065
- Kohn, E., Huang, C., Kong, N., & Hardman, S. (2022). Electric Vehicle Incentives in 15 Leading Electric Vehicle Markets.
- Kumar, R., Chakraborty, A., & Mandal, P. (2021). Promoting electric vehicle adoption: Who should invest in charging infrastructure? Transportation Research Part E: Logistics and Transportation Review, 149, 102295. https://doi.org/10.1016/j.tre.2021.102295
- Magsamen-Conrad, K., & Dillon, J. (2020). Mobile technology adoption across the lifespan: A mixed methods investigation to clarify adoption stages, and the influence of diffusion attributes. Computers in Human Behavior, 112, 106456. https://doi.org/10.1016/j.chb.2020.106456
- Micari, S., Polimeni, A., Napoli, G., Andaloro, L., & Antonucci, V. (2017). Electric vehicle charging infrastructure planning in a road network. Renewable and Sustainable Energy Reviews, 80, 98–108. https://doi.org/10.1016/j.rser.2017.05.022
- Münzel, C., Plötz, P., Sprei, F., & Gnann, T. (2019). How large is the effect of financial incentives on electric vehicle sales? – A global review and European analysis. Energy Economics, 84, 104493. https://doi.org/10.1016/j.eneco.2019.104493
- Neubauer, J., Brooker, A., & Wood, E. (2012). Sensitivity of battery electric vehicle economics to drive patterns, vehicle range, and charge strategies. Journal of Power Sources, 209, 269–277. https://doi.org/10.1016/j.jpowsour.2012.02.107
- Reuters. (2021). Britain expands discount scheme for electric vehicles.
- Schulz, F., & Rode, J. (2022). Public charging infrastructure and electric vehicles in Norway. Energy Policy, 160, 1–12. https://doi.org/10.1016/j.enpol.2021.112660
- Sekaran, U., & Bougie, R. (2016). Research methods for business. John Wiley & Sons.
- Sheldon, T., Dua, R., & Alharbi, O. (2023). Electric vehicle subsidies: Time to accelerate or pump the brakes? Energy Economics, 120, 106641. https://doi.org/10.1016/j.eneco.2023.106641
- Springel, K. (2021). Network Externality and Subsidy Structure in Two-Sided Markets: Evidence from Electric Vehicle Incentives. American Economic Journal: Economic Policy, 13(4), 393–432. https://doi.org/10.1257/pol.20190131
- Sun, C., Zheng, S., & Wang, R. (2014). Restricting driving for better traffic and clearer skies: Did it work in Beijing? Transport Policy, 32, 34–41. https://doi.org/10.1016/j.tranpol.2013.12.010
- Utami, M., Yuniaristanto, Y., & Sutopo, W. (2020). Adoption Intention Model of Electric Vehicle in Indonesia. Jurnal Optimasi Sistem Industri, 19(1), 70–81. https://doi.org/10.25077/josi.v19.n1.p70-81.2020
- Viard, V., & Fu, S. (2015). The effect of Beijing’s driving restrictions on pollution and economic activity. Journal of Public Economics, 125, 98–115. https://doi.org/10.1016/j.jpubeco.2015.02.003
- Yan, S. (2018). The economic and environmental impacts of tax incentives for battery electric vehicles in Europe. Energy Policy, 123, 53–63. https://doi.org/10.1016/j.enpol.2018.08.032
- Yang, J., Lu, F., Liu, Y., & Guo, J. (2018). How does a driving restriction affect transportation patterns? The medium-run evidence from Beijing. Journal of Cleaner Production, 204, 270–281. https://doi.org/10.1016/j.jclepro.2018.08.069
- Young, D. (2018). Handbook of Regression Methods. Chapman and Hall/CRC Press. https://doi.org/10.1201/9781315154701
References
Adiatma, J. C., & Marciano, I. (2020). The Role of Electric Vehicles in Decarbonizing Indonesia’s Road Transport Sector. Institute for Essential Service Reform.
Barahona, N., Gallego, F., & Montero, J. (2020). Vintage-Specific Driving Restrictions. The Review of Economic Studies, 87(4), 1646–1682. https://doi.org/10.1093/restud/rdz031
Bjerkan, K., Nørbech, T., & Nordtømme, M. (2016). Incentives for promoting Battery Electric Vehicle (BEV) adoption in Norway. Transportation Research Part D: Transport and Environment, 43, 169–180. https://doi.org/10.1016/j.trd.2015.12.002
Candra, C. (2022). Evaluation of Barriers to Electric Vehicle Adoption in Indonesia through Grey Ordinal Priority Approach. International Journal of Grey Systems, 2(1), 38–56. https://doi.org/10.52812/ijgs.46
Davis, L. (2008). The Effect of Driving Restrictions on Air Quality in Mexico City. Journal of Political Economy, 116(1), 38–81. https://doi.org/10.1086/529398
Daziano, R., Sarrias, M., & Leard, B. (2017). Are consumers willing to pay to let cars drive for them? Analyzing response to autonomous vehicles. Transportation Research Part C: Emerging Technologies, 78, 150–164. https://doi.org/10.1016/j.trc.2017.03.003
Edgar, T. W., & Manz, D. O. (2017). Exploratory Study (Chapter 4). In Research Methods for Cyber Security, 95–130. https://doi.org/10.1016/B978-0-12-805349-2.00004-2
Falbo, P., Pelizzari, C., & Rizzini, G. (2022). Optimal incentive for electric vehicle adoption. Energy Economics, 114, 106270. https://doi.org/10.1016/j.eneco.2022.106270
Febransyah, A. (2021). Predicting Purchase Intention towards Battery Electric Vehicles: A Case of Indonesian Market. World Electric Vehicle Journal, 12(4), 240. https://doi.org/10.3390/wevj12040240
Figenbaum, E., Kolbenstvedt, M., & Elvebakk, B. (2014). Electric Vehicles–environmental, economic, and practical aspects. As seen by current and potential users, (1329). TOI Report 1329/2014. https://www.toi.no/getfile.php/1337250-1411472277/Publikasjoner/TØI rapporter/2014/1329-2014/1329-2014-el.pdf
Gallego, F., Montero, J., & Salas, C. (2013). The effect of transport policies on car use: Evidence from Latin American cities. Journal of Public Economics, 107, 47–62. https://doi.org/10.1016/j.jpubeco.2013.08.007
Gass, V., Schmidt, J., & Schmid, E. (2014). Analysis of alternative policy instruments to promote electric vehicles in Austria. Renewable Energy, 61, 96–101. https://doi.org/10.1016/j.renene.2012.08.012
Gong, S., Ardeshiri, A., & Rashidi, T. (2020). Impact of government incentives on the market penetration of electric vehicles in Australia. Transportation Research Part D: Transport and Environment, 83, 102353. https://doi.org/10.1016/j.trd.2020.102353
Gunawan, I., Redi, A., Santosa, A., Maghfiroh, M., Pandyaswargo, A. H., & Kurniawan, A. C. (2022). Determinants of Customer Intentions to Use Electric Vehicle in Indonesia: An Integrated Model Analysis. Sustainability, 14(4), 1972. https://doi.org/10.3390/su14041972
Haidar, B., & Rojas, M. (2022). The relationship between public charging infrastructure deployment and other socio-economic factors and electric vehicle adoption in France. Research in Transportation Economics, 95, 101208. https://doi.org/10.1016/j.retrec.2022.101208
Hardman, S. (2021). Investigating the decision to travel more in a partially automated electric vehicle. Transportation Research Part D: Transport and Environment, 96, 102884. https://doi.org/10.1016/j.trd.2021.102884
Hardman, S., & Sperling, D. (2020, July). The need for sustainable and persistent incentives for electric vehicles. In Forum, The Oxford Institute for Energy Studies (Vol. 25, p. 27).
Hilbe, J. (2016). Practical Guide to Logistic Regression. Chapman and Hall/CRC. https://doi.org/10.1201/b18678
Jenn, A., Springel, K., & Gopal, A. (2018). Effectiveness of electric vehicle incentives in the United States. Energy Policy, 119, 349–356. https://doi.org/10.1016/j.enpol.2018.04.065
Kohn, E., Huang, C., Kong, N., & Hardman, S. (2022). Electric Vehicle Incentives in 15 Leading Electric Vehicle Markets.
Kumar, R., Chakraborty, A., & Mandal, P. (2021). Promoting electric vehicle adoption: Who should invest in charging infrastructure? Transportation Research Part E: Logistics and Transportation Review, 149, 102295. https://doi.org/10.1016/j.tre.2021.102295
Magsamen-Conrad, K., & Dillon, J. (2020). Mobile technology adoption across the lifespan: A mixed methods investigation to clarify adoption stages, and the influence of diffusion attributes. Computers in Human Behavior, 112, 106456. https://doi.org/10.1016/j.chb.2020.106456
Micari, S., Polimeni, A., Napoli, G., Andaloro, L., & Antonucci, V. (2017). Electric vehicle charging infrastructure planning in a road network. Renewable and Sustainable Energy Reviews, 80, 98–108. https://doi.org/10.1016/j.rser.2017.05.022
Münzel, C., Plötz, P., Sprei, F., & Gnann, T. (2019). How large is the effect of financial incentives on electric vehicle sales? – A global review and European analysis. Energy Economics, 84, 104493. https://doi.org/10.1016/j.eneco.2019.104493
Neubauer, J., Brooker, A., & Wood, E. (2012). Sensitivity of battery electric vehicle economics to drive patterns, vehicle range, and charge strategies. Journal of Power Sources, 209, 269–277. https://doi.org/10.1016/j.jpowsour.2012.02.107
Reuters. (2021). Britain expands discount scheme for electric vehicles.
Schulz, F., & Rode, J. (2022). Public charging infrastructure and electric vehicles in Norway. Energy Policy, 160, 1–12. https://doi.org/10.1016/j.enpol.2021.112660
Sekaran, U., & Bougie, R. (2016). Research methods for business. John Wiley & Sons.
Sheldon, T., Dua, R., & Alharbi, O. (2023). Electric vehicle subsidies: Time to accelerate or pump the brakes? Energy Economics, 120, 106641. https://doi.org/10.1016/j.eneco.2023.106641
Springel, K. (2021). Network Externality and Subsidy Structure in Two-Sided Markets: Evidence from Electric Vehicle Incentives. American Economic Journal: Economic Policy, 13(4), 393–432. https://doi.org/10.1257/pol.20190131
Sun, C., Zheng, S., & Wang, R. (2014). Restricting driving for better traffic and clearer skies: Did it work in Beijing? Transport Policy, 32, 34–41. https://doi.org/10.1016/j.tranpol.2013.12.010
Utami, M., Yuniaristanto, Y., & Sutopo, W. (2020). Adoption Intention Model of Electric Vehicle in Indonesia. Jurnal Optimasi Sistem Industri, 19(1), 70–81. https://doi.org/10.25077/josi.v19.n1.p70-81.2020
Viard, V., & Fu, S. (2015). The effect of Beijing’s driving restrictions on pollution and economic activity. Journal of Public Economics, 125, 98–115. https://doi.org/10.1016/j.jpubeco.2015.02.003
Yan, S. (2018). The economic and environmental impacts of tax incentives for battery electric vehicles in Europe. Energy Policy, 123, 53–63. https://doi.org/10.1016/j.enpol.2018.08.032
Yang, J., Lu, F., Liu, Y., & Guo, J. (2018). How does a driving restriction affect transportation patterns? The medium-run evidence from Beijing. Journal of Cleaner Production, 204, 270–281. https://doi.org/10.1016/j.jclepro.2018.08.069
Young, D. (2018). Handbook of Regression Methods. Chapman and Hall/CRC Press. https://doi.org/10.1201/9781315154701