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Electric vehicles attractiveness in emerging country (Brazil) considering policy and regulation towards energy transition

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  • Hidalgo Leite, Nathalia
  • Guzman Lascano, Cindy Paola
  • Valente Morais, Hugo Gabriel
  • Pereira da Silva, Luiz Carlos

Abstract

Transportation sector is largely responsible for global CO2 emissions, negatively impacting the environment and human health. In developing and emerging economies Electric Vehicles (EVs) market share is still incipient. Therefore, this research evaluates EV attractiveness in relation to Internal Combustion Vehicles (ICVs) for Brazil, an emerging country with a consolidated market of alternative fuels and a regulated system of electricity compensation. The objective is to bring information that can speed up the transition process towards sustainable mobility. The methodology contemplates the development of a comprehensive Total Cost of Ownership (TCO) model, including the country's specificities in terms of biofuels and net-metering. The results show that EVs still depend on government and manufactures subsidies to be cost-competitive in Brazil. Finally, in the last year, the combination of government subsidies (electricity and tax reduction) and strong competitive prices from some manufactures have contributed to boost EV adoption in the country. In this research, the Green Premium (GP) value or “energy transition costs” between ICVs and BEVs, considering medium level automobiles is - R$ 23,000 for comparable and - R$ 73,000 for best-selling data, showing the cost-competitiveness of electric in relation to combustion vehicles in the country.

Suggested Citation

  • Hidalgo Leite, Nathalia & Guzman Lascano, Cindy Paola & Valente Morais, Hugo Gabriel & Pereira da Silva, Luiz Carlos, 2026. "Electric vehicles attractiveness in emerging country (Brazil) considering policy and regulation towards energy transition," Renewable Energy, Elsevier, vol. 256(PB).
    • Handle: RePEc:eee:renene:v:256:y:2026:i:pb:s0960148125017057
    DOI: 10.1016/j.renene.2025.124041
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    References listed on IDEAS

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