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Analyzing the Benefits of Electric Vehicles in the Philippines

guide analyzing the benefits of electric vehicles in the philippines

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The advantages of electric cars (EVs) in terms of the environment, economy, and society are making them more and more popular globally. The adoption of EVs is gaining speed in the Philippines because of government and industry initiatives. While saving money on gasoline and maintenance, EVs may drastically cut carbon emissions, air pollution, and employment possibilities. This blog will analyze the many benefits of Electric Vehicles or Electric Cars in the Philippines.

What is an Electric Car?

Electric vehicles (EVs) have an electric motor in place of an internal combustion engine and a battery in place of a gas tank. Plug-in hybrid electric vehicles (PHEVs), which combine gasoline and electricity, have an internal combustion engine, a battery, an electric motor, and a gas tank. Fuel sources for PHEVs include both gasoline and electricity.

Environmental Benefits of Electric Vehicles in the Philippines

Electric vehicles (EVs) offer significant environmental benefits:

Reduce carbon emissions and improve air quality

In the Philippines, air pollution has been linked to respiratory diseases and premature deaths, making the adoption of EVs a crucial step towards improving public health.

Produce zero emissions while driving

Making them an eco-friendly alternative to traditional fossil fuel-powered vehicles. This can help reduce the country’s dependence on fossil fuels, which are a finite resource and a significant contributor to global warming. EVs also promote the use of renewable energy sources, such as solar and wind power, which can help further reduce carbon emissions.

Quieter than traditional vehicles

Reducing noise pollution in urban areas. This can significantly improve the quality of life for residents and reduce stress levels. The use of EVs can also help reduce the environmental impact of the transportation sector, which is responsible for a significant portion of the country’s greenhouse gas emissions.

Economic Benefits of Electric Vehicles in the Philippines

The adoption of electric vehicles (EVs) in the Philippines can also bring significant economic benefits.

Have lower operating costs compared to traditional fossil fuel-powered vehicles

Due to their lower maintenance and fuel costs, EVs can be cheaper to own and operate, leading to significant cost savings for individual consumers and fleet operators.

New jobs

The Electric Vehicle Association of the Philippines (EVAP) estimates that 10,000 new jobs may be created, including in downstream and upstream industries, with the development of the Electric Vehicle Industry in the Philippines. The new jobs generated through the actual operations of the EV systems such as charging station operators, maintenance and service technicians, ETrike and EJeepney drivers, and transport operators.

More taxes for the government

EVAP estimates that with the new industry that will be established, there will be additional withholding taxes of P689.52 million starting Year 4 up to Year 9 after the signing of the Alternative Fuel Vehicles Incentives Act. 

Multiplier effect

The injection of more disposable income will lead to more consumer spending which will, in turn, create more incremental sales for the EV industry. The multiplier effect of the generated sales to the EV industry given a multiplier of 5 is P167.46 billion. At 1% withholding tax, the Philippine government stands to collect P1.67 billion. 

Dollar savings from Oil Import Reduction

Assuming that 100,000 ETrikes are deployed, the dollar savings from gasoline imports would amount to P4.5 billion (90 million liters x P50/liter) or $100.41 million.

Net VAT gain on EV Sales

An estimated VAT of P1.57 billion is expected to be contributed to the government in 9 years based on the gross revenues of P33.49 billion from sales of 100,000 ETrikes and 10,000 EJeepneys.

Social Benefits of Electric Vehicles in the Philippines

Here are some of the key social benefits of EVs:

Improved Public Health

The use of EVs can lead to improved public health by reducing air pollution. The transportation sector is a significant contributor to air pollution, and EVs produce zero tailpipe emissions, reducing the amount of harmful pollutants in the air.

Access to Clean Transportation

The adoption of EVs can provide access to clean transportation for all, including low-income communities. EVs can be charged using renewable energy sources, such as solar or wind power, providing a more sustainable and affordable option for transportation.

Noise Reduction

The use of EVs can reduce noise pollution, creating a quieter and more peaceful environment for residents. This can be particularly beneficial in urban areas where noise pollution is a significant issue.

Government Incentives and Policies to Promote Electric Vehicles in the Philippines

Green Energy Option Program (GEOP)

It is an initiative under the Renewable Energy Act of 2008 that promotes the use of renewable energy sources such as solar, wind, and hydropower. One of its objectives is to encourage the use of EVs by allowing consumers to choose renewable energy as their power source.

Electric Vehicles and Charging Stations Act  

This law (Republic Act No.11697) provides incentives to manufacturers and importers of EVs. It also mandates the installation of EV charging stations in certain public places and government buildings.

Public Utility Vehicle Modernization Program (PUVMP) 

It is a government initiative that aims to transform the road sector of public transport through the introduction of safer and climate-friendly vehicles, improved regulation, and industry consolidation.

The benefits of electric vehicles in the Philippines are clear. With a commitment to transitioning to EVs, the country can significantly reduce its greenhouse gas emissions, improve air quality, and achieve cost savings.

However, realizing the full potential of EVs will require a concerted effort from policymakers, businesses, and individuals alike. By working together to address the challenges of charging infrastructure and policy support, we can create a cleaner, more sustainable future for the Philippines.  – WhatALife!/Jayve

Sources: (1), (2), (3)

Also read: LIST: Go Electric! The Best Electric Cars in the Philippines

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