探索印度电动汽车补贴方案的经济、社会和环境结果-2024-03-新能源

YExploringtheEconomic,Social,andEnvironmentalOutcomesofSubsidySchemesforElectricVehiclesinIndia©2024TheInternationalInstituteforSustainableDevelopmentPublishedbytheInternationalInstituteforSustainableDevelopment.ThispublicationislicensedunderaCreativeCommonsAttribution-NonCommercial-ShareAlike4.0InternationalLicense.InternationalInstituteforSustainableDevelopmentTheInternationalInstituteforSustainableDevelopment(IISD)isanaward-winningindependentthinktankworkingtoacceleratesolutionsforHeadOffice111LombardAvenue,astableclimate,sustainableresourcemanagement,andfaireconomies.Suite325OurworkinspiresbetterdecisionsandsparksmeaningfulactiontohelpWinnipeg,Manitobapeopleandtheplanetthrive.WeshinealightonwhatcanbeachievedCanadaR3B0T4whengovernments,businesses,non-profits,andcommunitiescometogether.IISD’sstaffofmorethan250people,plusover150associatesTel:+1(204)958-7700andconsultants,comefromacrosstheglobeandfrommanydisciplines.Website:WithofficesinWinnipeg,Geneva,Ottawa,andToronto,ourworkaffectslivesinnearly100countries.Twitter:@IISD_newsIISDisaregisteredcharitableorganizationinCanadaandhas501(c)(3)statusintheUnitedStates.IISDreceivescoreoperatingsupportfromtheProvinceofManitobaandprojectfundingfromgovernmentsinsideandoutsideCanada,UnitedNationsagencies,foundations,theprivatesector,andindividuals.ExploringtheEconomic,Social,andEnvironmentalOutcomesofSubsidySchemesforElectricVehiclesinIndia:InsightsfromtheSustainableAssetValuationassessmentoftheFAMEIIpolicyJanuary2024Theauthorsofthisreportaregratefultotheircolleaguesandreviewers-SidtheInternationalInstituteofSustainableDevelopment;SumatiKohlifromtheDeutscheGesellschaftfürInternationaleZusammenarbeitGmbHIndia—forExecutiveSummaryPurposeofThisAssessmentandtheSustaValuationMethodologySustainableAssetValuation(SAVi)isanassessmentmethodologythatprovidespolicy-makersandinvestorswithacomprehensiveandcustomizedanalysisofhowmuchtheirinfrastructureprojectsandportfolioswillcostthroughouttheirlifecycles.Theapproachpurposefullyconsidersrisksandexternalitiesthatareoverlookedinatraditionalvaluation.ASAViassessmentisbuiltonafoundationthatincludesthefollowingelements:•modelling:Assessmentsinvolveacombinationofsystemsthinkinganddifferentmodellingmethodologies,spatialmodelling,economicmultiplier/multicriteriaassessments,systemdynamics,andfinancialmodels.•customization:Assessmentsarecustomizedtoeachindividualinfrastructureproject,portfolio,orpolicy.•collaboration:Assessmentsareco-createdwithdecision-makersandstakeholders.Thismultistakeholderapproachallowsstakeholderstoidentifymaterialrisksandopportunitiesthatareuniquetotheprojectsoralternatives.Throughthisprocess,thecapacityofdecision-makersandstakeholdersisstrengthened,whichallowsthemtotakeasystemicapproachtoinvestmentsandincreasesthelikelihoodoftheuptakeanduseoftheresultsoftheanalysis,aswellasthelikelihoodthattheywillhaveanimpact.•datadriven:Assessmentsarebasedonproject-leveldata(whereavailable),theSAVidatabase(basedonliteraturereviewsanddatafrompreviousSAViapplications),andbest-in-classclimatedatafromtheEUCopernicusClimateDateStore(builtintoallSAVimodels).ThisassessmentappliestheSAVimethodologytothesecondphaseoftheFasterAdoptionandManufacturingof(Hybridand)ElectricVehiclesinIndia(FAMEII)policy.Theresultsaimtoraiseawarenessoftheeconomic,social,andenvironmentaloutcomesofinfrastructureandpolicyinterventionsintheareaofsustainabletransportandmobility.Italsoaimstoinformdecision-makersontheuseofsystemicapproachesinsupportingthetransformationtowardsustainablemobility.TheassessmentispartofaseriesofSAViassessmentsofsustainabletransportprojectsinAlbania,Colombia,India,Indonesia,andSenegal.CitiesinIndiafacenumerousurbanmobilityandtransportchallenges,suchaslongcommutingtimes,safetyconcerns,airpollution,andmanyothereconomicinefficiencies.India’stransportsectorisexpectedtomeetthetransportneedsofalmost1.4billionpeople,halfabillionofwhichliveinurbanareas.Atthesametime,theglobalautomotiveindustryisexperiencingsignificantdisruptionsduetodevelopmentsindigitalizationandautomation.TheelectrificationoftransportvehiclesisofparticularimportanceinIndia,asitcanhaveconsiderablepositiveimpactsintermsofvehiclepollutionandgreenhousegasemissions,especiallyinthecountry’slargemetropolises.Asastrategytoaddresssomeofthosetransportchallenges,theIndianNationalAutomotiveBoarddevelopedafundingschemeforelectricvehicles(EVs)inordertocreatedemandforthosetechnologies.FAMEIIaimstosupporttheelectrificationofpublicandsharedtransportationandisimplementedviatheuseofsubsidiesdirectlyprovidedbytheNationalGovernmentofIndia(theMinistryofHeavyIndustries)tourbanauthoritiesinIndiancitiesovera5-yearperiod,includingarecentextension.FAMEIIaimstosupportelectricbuses,cars,three-wheelers,andmotorcycles,aswellastoestablishelectricchargers,withatotalbudgetofINR100billionorUSD1.2billion.Sofar,70%ofthefundshaveyettobeutilizedundertheFAMEIIpolicy.ThisreportdiscussestheresultsofasystemicvaluationoftheFAMEIIpolicyinIndia,usingtheSAVimethodologytoillustratethevalueoftheeconomic,social,andenvironmentaloutcomesoftheschemeunderdifferentscenarios.TheSAViassessmentusesavarietyofmodelstoestimatenotonlytheinvestmentcosts(i.e.,capitalandoperationandmaintenance[O&M]costs)butalsotheaddedenvironmental,social,andeconomicbenefitsandavoidedcosts.Theassessmentincludesfourscenarioswithamixofthefollowingcomponents:•subsidy:thetotalbudgetallocatedbythegovernmentforthepromotionofEVs(INR100billion)across3years(2023,2024,and2025).•contribution:theshareofthecostoftheEVthatwillbecoveredbythegovernmentsubsidyasopposedtothesharethatwillbecoveredbytheconsumer.ThefourFAMEIIscenariosmodelledforthisassessmentareasfollows:•scenario1:50%subsidyand40%contribution•scenario2:100%subsidyand40%contribution•scenario3:100%subsidyand35%contribution•scenario4:100%subsidyand25%contributionForeachscenario,theanalysispresentsthefollowing:•avaluationofsixinvestmentandO&McostsandavaluationofnineaddedbenefitsandavoidedcostsrelatedtotheFAMEIIpolicy;•anintegratedcost-benefitanalysis(CBA)oftheFAMEIIpolicy,includingtheaddedbenefitsandavoidedcosts;and•avaluationofthreebenefit-costratios(BCRs)fortheFAMEIIpolicy:theconventionalBCR;theBCRfromtheperspectiveofthegovernment;andtheBCRfromtheperspectiveofhouseholdsandtheprivatesectorperspective.Accordingtotheanalysis,theFAMEIIpolicyinIndiahasawiderangeofeconomic,social,andenvironmentalbenefitsthataretypicallyoverlookedintraditionaltransportinfrastructureassessments.TheresultsfromtheSAViassessmentdemonstratethattheFAMEIIpolicyinIndiawillstimulateeconomicgrowthanddeliverconsiderablesocialandenvironmentalbenefits,suchasavoidedcostsofinternalcombustionengine(ICE)vehiclesandfueluse,avoidedcostsofairpollutionandcarbondioxide(CO2)emissions,andemploymentcreation.TableES1.IntegratedCBA(discountedat3.5%over28years)IntegratedCBA (Subsidy50%, contribution40%) (Subsidy100%, contribution40%) (Subsidy100%, contribution35%) scenario4(Subsidy100%, contribution25%)Investmentand(INRbillion)539.071,078.341,408.59SubsidiesforEVsInvestmentcostofEVsaftersubsidies453.14906.272,443.70InvestmentcostofEVchargers8.5422.30O&McostsofEVs80.74InvestmentcostofpowergenerationO&Mcostsofpowergeneration4.40Addedbenefits(INRbillion)IntegratedCBA (Subsidy50%, contribution40%) (Subsidy100%, contribution40%) (Subsidy100%, contribution35%) scenario4(Subsidy100%, contribution25%)IncomegenerationfromEV-relatedemploymentIncomegenerationfrompowergeneration-relatedemployment0.240.320.63(INRbillion)849.664,350.03InvestmentcostofICEvehiclesO&McostsofICEvehiclesAirpollution55.60108.96CO2emissionsAccidents0.010.030.030.07302.87593.56Noisepollution0.56Cumulativenetbenefits314.14628.00820.121,606.90BCRBCR–government0.830.831.08BCR–householdsandprivatesectorSource:Authors’modelling.fromEVsemploymentAddedincomecreationfromfromEVsemploymentAddedincomecreationfromSubsidiesforEVsInvestmentcostofEVsInvestmentcostofEVchargersO&McostsInvestmentcostofpowergenerationO&McostsofpowergenerationAddedincomecreationAsTableES1demonstrates,FAMEIIscenario4yieldsthehighestcumulativebenefits(INR1,606.90billion)fromtheperspectiveofthegovernmentbecausethegovernment’scontributionislower,at25%.ThismeansthattheshareofthecostoftheEVthatwillbecoveredbytheconsumer/userwillbehighestinFAMEIIscenario4.Similarly,FAMEIIscenario3yieldsthesecond-highestcumulativebenefits(INR820.12billion)becausethegovernment’scontributionis35%.FAMEIIscenarios1and2includea40%contributionfromthegovernment.Naturally,FAMEIIscenario2hasdoublethecumulativenetbenefits(INR628billion)ofFAMEIIscenario1(INR314.14billion)becauseintheformer,100%ofthesubsidymoneyforthepromotionofEVs(INR100billion)isusedwhereasinthelattercase,only50%ofthesubsidymoneyisused.TheSAViassessmentoftheFAMEIIpolicyinIndiaalsocalculatesmonetaryvaluesforarangeofaddedbenefitsandavoidedcostsfortheFAMEIIpolicyscenarios.TheavoidedinvestmentcostsofICEvehiclesshowthehighestvaluesacrossallfourFAMEIIscenarios,followedbytheavoidedcostsoffueluseasaresultofthereplacementofICEvehicleswithEVsand,toalesserextent,theavoidedO&McostsofICEvehicles.Alloftheabovecostsarebornebyconsumers/usersandnotbythegovernment.Alloftheaboveinvestmentcosts,addedbenefits,andavoidedcostsoftheFAMEIIpolicyacrossallfourFAMEIIscenariosareshowninFigureES1.FigureES1.Investmentcosts,addedbenefits,andavoidedcostsoftheFAMEIIpolicyinIndia3,5003,0002,5002,0001,5001,0005000powergenerationemploymentAvoidedinvestmentcostofICEvehiclesAvoidedO&McostsofICEvehiclesAvoidedairpollutionAvoidedCO2emissionsAvoidedaccidentsAvoidedfueluseAvoidednoisepollutionScenario1:subsidy(50%),contribution(40%)ScenarioScenario1:subsidy(50%),contribution(40%)Scenario3:subsidy(100%),contribution(35%)Scenario4:subsidy(100%),contribution(25%)Source:Authors’calculations.scenario4Inaddition,threeBCRshavebeencalculated:theconventionalBCR,theBCRfromtheperspectiveofthegovernment,andtheBCRfromtheperspectiveofhouseholdsandtheprivatesector.TheconventionalBCRconsidersallinvestmentsandcostsandthefullrangeofeconomic,social,andenvironmentaladdedbenefitsandavoidedcosts.TheBCRfromtheperspectiveofthegovernmentconsidersonlytheimpactsthatarebornebythegovernmentandexcludestheonesthatarebornebyconsumers/users,suchasinvestmentinEVs,EVchargers,andtheO&McostsofEVs,aswellastheavoidedinvestmentandO&McostsofICEvehiclesandfueluse.TheBCRfromtheperspectiveofhouseholdsandtheprivatesectorconsidersonlytheimpactsthatarebornebytheconsumers/usersofEVsandexcludestheonesthataremostlybornebythegovernment,suchasthesubsidyitself,incomecreationfromEVs,powergeneration-relatedemployment,andavoidedcostsofairandnoisepollution,CO2emissions,andtrafficaccidents.TheconventionalBCRisthesameacrossallfourFAMEIIscenarios(1.58)becauseregardlessoftheinvestment,thebenefitsperEVsoldarethesame.ThebenefitsareaccruedperEV,and,therefore,themoreEVsthataresold,themoreabsolutebenefitsaccrue.Ifweconsiderboththegovernmentand,together,householdsandtheprivatesectororconsumers/users,theBCRdoesnotchange,whereasifweconsiderthegovernmentandhouseholdsseparately,theBCRchanges.TableES2showsthetwoBCRsacrossthefourFAMEIIscenarios.TableES2.BCRsacrossFAMEIIscenarios(discounted3.5%)BCRBCR–government0.830.831.08BCR–householdsandtheprivatesectorSource:Authors’modelling.AccordingtoTableES2,thelowerthegovernment’ssubsidycontributiontothetotalcostofanEV,thelowertheBCRfromtheperspectiveofhouseholdsandtheprivatesectorandthehighertheBCRfromtheperspectiveofthegovernment.ThisisshownclearlyinFigureES2.FigureES2.BCRsfromtheperspectivesofthegovernmentandofhouseholdsandtheprivatesectoracrossallfourFAMEIIscenarios0.0Scenario1:Scenario2:Scenario3:Scenario4:subsidy(50%),subsidy(100%),subsidy(100%),subsidy(100%),contribution(40%)contribution(40%)constribution(35%)contribution(25%)BCR-governmentBCR-householdsandprivatesectorSource:Authors’modellingThesefindingsareintuitivebecausetheBCRfromtheperspectiveofthegovernmentbecomesgreaterasitssubsidycontributionisreduced,whereastheBCRfromtheperspectiveofhouseholdsandtheprivatesectordecreasesasahighershareofthecostofanEVisbornebythelattergroup.Itisimportanttofindtherightbalancebetweenreducingthegovernment’ssubsidycontributioninorderforahighernumberofEVstobesubsidizedandprovidingtherightincentivesforhouseholdsandtheprivatesectortobuyEVs.Lastly,thisSAViassessmentassumesthatprivateinvestmentinEVswillcoverthegovernment’sgapintheeventthatthesubsidyisnotprovided.Similarassumptionsarebasedonacombinationoffactorsthataredifficulttoquantify,includingthespeedoftheglobaluptakeofEVs,theEVmarketmaturityinIndia,technologicaladvances,futurepolicies,andsoon.TheEVmarketinIndiahascurrentlyreachedacertainlevelofmaturityforsometypesofEVs,suchastwo-wheelers.Inthiscontext,itisassumedthatreducingthesubsidywillnothaveanenormousimpactontheadvancementofEVsinthelongterm.TheSAViassessmentprovidesbenchmarkvaluesforpolicy-makersandpublicinfrastructureplannerswhenitcomestovaluingthesocietalbenefitsandcostsoftheFAMEIIpolicy.TableES3indicateshowdifferentstakeholdersanddecision-makerscanusetheresultsofthisassessmenttomakemoreinformeddecisions.TableES3.Howdifferentstakeholdersanddecision-makerscanusetheresultsoftheSAViassessmentoftheFAMEIIpolicyinIndiaStakeholderHowthestakeholdercanusetheresultsoftheGovernmentDesign,implementation,andfinanceoftheFAMEIIpolicyinIndiaRegionalandnationalgovernmentscanusetheassessmentresultstoraiseawarenessandjustifyinvestmentsandsupportforsustainabletransportprojectsandpolicies,aswellasmakingtheseassessmentsastandardandarequirementforinvestmentdecisions.Privatesector/IndustryProjectdevelopersBusinessesandprivatesectorentitiescanusetheassessmentresultsforadditionaladvocacyforsustainabletransportprojectsandpolicies,aswellasforidentifyingnewopportunities.DonorsandfundersFundingofsustainabletransportprojectsandpoliciesDonorscanincludetheassessmentresultsintheirreportingprocessestoshowtheimpactsoftheirinvestments.Theassessmentresultscanalsobeusedforawarenessraisingofthebenefitsofsustainabletransportpolicies,withtheultimateaimofmakingtheseassessmentsaformalrequirement.CivilsocietyorganizationsConsultationwithgovernmentonsustainabletransportprojectsandpoliciesCivilsocietyorganizationscanusetheassessmentresultstoconductmoretargetedadvocacyforsustainabletransportprojectsandpolicies,toraiseawarenessoftheirvaluetosociety.Source:Authors'modelling.IntegratedassessmentssuchasthisoneconductedusingtheSAVimethodologycanhelptomakeastrongercaseforsustainabletransportpolicies.AbbreviationsBCRbenefit-costratioBAUbusinessasusualCBAcost-benefitanalysisCLDcausalloopdiagramCO2carbondioxideEVelectricvehicleFAMEFasterAdoptionandManufacturingof(Hybridand)ElectricVehiclesinIndiaFYfinancialyearGDPgrossdomesticproductICEinternalcombustionengineO&MoperationandmaintenancePVphotovoltaic(solarpower)SustainableAssetValuationv-kmvehicle-kmTableofContents1.0Introduction 11.1MobilityChallengesandTransportStrategiesinIndia 11.2PurposeofaSustainableAssetValuationoftheFAMEIIPolicyinIndia 21.3Structure 22.0Methodology 32.1SystemMapping 32.2SummaryofActions/InterventionsValuedbytheSAViAssessment 53.0ScenariosandAssumpt 63.1ScenariosintheFAMEIIPolicySAViAssessment 63.2ValuationMethodologiesoftheInvestmentandCosts,AddedBenefits,andAvoidedCosts 7 204.1IntegratedCBA 20 276.0References 29AppendixA.CausalLo 31FigureES1.Investmentcosts,addedbenefits,andavoidedcostsoftheFAMEIIpolicyinIndia viiiFigureES2.BCRsfromtheperspectivesofthegovernmentandofhouseholdsandtheprivatesectoracrossallfourFAMEIIscenarios xFigure1.CLDoftheFAMEIIpolicyinIndia 4Figure2.Investmentcosts,addedbenefits,andavoidedcostsoftheFAMEIIpolicyinIndia 24Figure3.BCRsfromtheperspectiveofthegovernmentandhouseholdsandtheprivatesectoracrossallfourFAMEIIscenarios 25TableES1.IntegratedCBA(discountedat3.5%over28years) viTableES2.BCRsacrossFAMEIIscenarios(discounted3.5%) ixTableES3.Howdifferentstakeholdersanddecision-makerscanusetheresultsoftheSAViassessmentoftheFAMEIIpolicyinIndia xiTable1.Causalrelationsandcausality 3Table2.Investmentandcost,addedbenefits,andavoidedcostsconsideredintheSAViassessment 5Table3.DescriptionofscenariossimulatedintheSAViassessmentoftheFAMEIIpolicy 6Table4.OverviewofkeyassumptionsandsourcesusedintheSAViassessmentoftheFAMEIIpolicyinIndia 7Table5.IntegratedCBA(discountedat3.5%over28years) 20Table6.InvestmentandcostsoftheFAMEIIscenarios(INRbillion,discountedat3.5%) 22Table7.AddedbenefitsandavoidedcostsoftheFAMEIIscenarios(INRbillion,discountedat3.5%) 23Table8.BCRsacrossFAMEIIscenarios(discountedat3.5%) 25Causalloopdiagram:Aschematicrepresentationofkeyindicatorsandvariablesofthesystemunderevaluationthatshowsthecausalconnectionsbetweenthemandcontributestotheidentificationoffeedbackloopsandpolicyentrypoints.Discounting:Afinancialprocesstodeterminethepresentvalueofafuturecashvalue.Indicator:Parametersofinteresttooneorseveralstakeholdersthatprovideinformationaboutthedevelopmentofkeyvariablesinthesystemovertimeandtrendsthatunfoldunderspecificconditions(UnitedNationsEnvironmentProgram[UNEP],2014).Methodology:Thetheoreticalapproach(es)usedforthedevelopmentofdifferenttypesofanalysistoolsandsimulationmodels.Thisbodyofknowledgedescribesboththeunderlyingassumptionsusedandqualitativeandquantitativeinstrumentsfordatacollectionandparameterestimation(UNEP,2014).Modelvalidation:Theprocessofassessingthedegreetowhichmodelbehaviour(i.e.,numericalresults)isconsistentwithbehaviourobservedinreality(i.e.,nationalstatistics,establisheddatabases)andtheevaluationofwhetherthedevelopedmodelstructure(i.e.,equations)isacceptableforcapturingthemechanismsunderlyingthesystemunderstudy(UNEP,2014).Netbenefits:Thecumulativeamountofmonetarybenefitsaccruedacrossallsectorsandactorsoverthelifetimeofinvestmentscomparedtothebaseline,reportedbytheinterventionscenario.Scenarios:Expectationsaboutpossiblefutureeventsusedtoanalyzepotentialresponsestothesenewandupcomingdevelopments.Consequently,scenarioanalysisisaspeculativeexerciseinwhichseveralfuturedevelopmentalternativesareidentified,explained,andanalyzedfordiscussiononwhatmaycausethemandtheconsequencesthesefuturepathsmayhaveonoursystem(e.g.,acountryorabusiness).Simulationmodel:Modelscanberegardedassystemicmapsinthattheyaresimplificationsofrealitythathelptoreducecomplexityanddescribe,attheircore,howthesystemworks.Simulationmodelsarequantitativebynatureandcanbebuiltusingoneorseveralmethodologies(UNEP,2014).Systemdynamics:AmethodologydevelopedbyJ.Forresterinthelate1950s(Forrester,1961)tocreatedescriptivemodelsthatrepresentthecausalinterconnectionsbetweenkeyindicatorsandshowtheircontributiontothedynamicsexhibitedbythesystemaswellastotheissuesbeinginvestigated.Thecorepillarsofthesystemdynamicsmethodarefeedbackloops,delays,andnon-linearityemergingfromtheexplicitcapturingofstocksandflows(UNEP,2014).1.0Introduction1.1MobilityChallengesandTransportStrategiesinIndiaCitiesinIndiafacenumerousurbanmobilityandtransportchallenges,suchaslongcommutingtimes,safetyconcerns,airpollution,andeconomicinefficiencies.Theseproblemsareprojectedtoworsenwithclimatechangeandcontinuedurbandevelopment.India’stransportsectorisexpectedtomeetthetransportneedsofalmost1.4billionpeople,halfabillionofwhichliveinurbanareas.Atthesametime,theglobalautomotiveindustryisexperiencingasignificantdisruptionduetodevelopmentsindigitalization,automation,andnewbusinessmodels.Partofthisdisruptionisthetransitiontoelectricvehicles(EVs).ElectrificationisofparticularimportanceinIndia,asitcanhaveconsiderablepositiveimpactsintermsofloweringvehiclepollutionandgreenhousegasemissions,especiallyinthecountry’slargemetropolises(Dhawanetal.,2017).Asastrategytoaddresssomeofthosetransportchallengesandtakeadvantageofnewglobaltrendsinvehicleelectrification,theIndianNationalAutomotiveBoarddevelopedafundingschemeforelectricbusesandotherelectriccommercialvehiclesinordertocreatedemandforthosetechnologies.Thesecondphase(II)ofthescheme,titledFasterAdoptionandManufacturingof(Hybridand)ElectricVehiclesinIndia(FAME),aimstosupporttheelectrificationofpublicandsharedtransportationandisimplementedviatheuseofsubsidiesdirectlyprovidedbytheGovernmentofIndia(theMinistryofHeavyIndustries)tourbanauthoritiesinIndiancitiesovera5-yearperiod,includingarecentextension(financialyear[FY]2019/2020to2023/2024).Inadditiontosubsidies,variousstate-levelandcity-levelsubsidiesandtaxexemptionsexisttomakeEVscosteffective.FAMEIIwillsupport7,090electricandhybridbuses;500,000electricthree-wheelers;55,000electricfour-wheelerpassengercars(includingfullorstronghybrids);and1millionelectrictwo-wheelers.Inaddition,theMinistryofHeavyIndustriesinIndiafinancedinfrastructurefor520chargingstationsthatwereinstalledunderphaseIofthescheme.ThetotalbudgetforFAMEIIamountstoINR100billion,orUSD1.2billion(MinistryofHeavyIndustries,2023).AspartoftheFAMEIIscheme,theMinistryofHeavyIndustrieshassanctioned2,877EVchargingstationsin68citiesacross25states,aswellas1,576chargingstationsacrossexpresswaysandhighways.Inparallel,theGovernmentofIndiahascreatedvariousincentivestoincreaseawarenessaboutEVsinnumerouscollegesanduniversitiesacrossthecountry(MinistryofHeavyIndustries,2023).Sofar,100%ofthebudgetallocatedunderFAMEIIhasbeenutilizedbytheMinistryofHeavyIndustriesforFY2019/2020to2021/2022.However,forFY2022/2023,thehalfwaymarkhasnotevenbeenreached:ThenumberofEVssoldunderFAMEIIasofDecember31,2022,hasreached811,725or51.96%ofthetargetthattheprogramaimedtosupportbytheendofDecember.Overall,70%offundsremaintobeutilizedundertheFAMEIIpolicy(JMKResearch&Analytics,2023).1.2PurposeofaSustainableAssetValuationoftheFAMEIITransformingthetransportsectorinIndiaisimperativeforreducingairpollutionandgreenhousegasemissionsandforcontributingtoenergyefficiencyinordertomeeteconomicandenvironmentaltargets.ThesecondphaseoftheFAMEschemeaimstostartthistransformationbysubsidizingtheelectrificationofpublicandsharedtransportation.Tofullyunderstandtheextensiveeconomic,social,andenvironmentalbenefitsandcostsoftheFAMEIIpolicyinIndia,acomprehensivequantitativeanalysisisrequired.Thisanalysisshouldnotonlyconsidertheinvestmentcosts(capitalandoperationandmaintenance[O&M]costs)typicallyassessedintransportinfrastructureevaluationsbutalsoincorporatetheadditionalbenefitsandavoidedcostsresultingfromsuchapolicy.SustainableAssetValuation(SAVi)assessmentsaimtoclearlydemonstratetheseaddedbenefitsandavoidedcostsoftransportpoliciesandinterventionsandtowhatextentsuchinterventionscanyieldmobilityimprovementsoremissionandenergyconsumptionreductions.Inotherwords,itencouragespublicauthoritiestounderstandtheimpactsofpolicyinterventionacrosseconomic,social,andenvironmentalparameters.TheGermanFederalMinistryforEconomicCooperationandDevelopmentrecentlyinvitedtheInternationalInstituteforSustainableDevelopmenttocustomizetheSAVimethodologytoassessthesuggestedFAMEIIpolicyinIndia.TheSAViassessmentoftheFAMEIIpolicyinIndiawillassesstheeconomicviabilityofEVs,consideringsocial,economic,andenvironmentalindicators,todemonstratethevalueformoneyforpublicsupport.ThisSAViassessmentoftheFAMEIIpolicyinIndiaispartofaseriesofnineSAViassessmentsonsustainabletransportandmobilityprojectsandpoliciesthataimtoraiseawarenessofsustainabletransportinfrastructureandinformdecision-makersontheuseofsystemicapproachesinsupportingthetransitionto