Drivers and barriers of eco-innovation in electric vehicle diffusion: Evidence from Indonesia

Ferry Fathoni, Effie Kesidou, Muhammad Mufti Rifansha, Avif Tiftazani

Research output: Contribution to journalArticlepeer-review

Abstract

Electric vehicles (EVs) are critical to achieving global decarbonization targets, yet their adoption in emerging economies remains limited. Indonesia is an emerging economy in Southeast Asia with a vehicle population of more than 164 million. However, public interest in adopting EVs remains low, with only 322,325. This study explores the drivers and barriers of eco-innovation (EI) in EV diffusion in Indonesia through qualitative interviews with 61 stakeholders, including energy companies, automotive manufacturers, and infrastructure providers. The findings highlight that fiscal and non-fiscal incentives, such as subsidies and tax exemptions, have encouraged EV adoption but suffer from inconsistent implementation. Collaboration among manufacturers, green suppliers, and research institutions emerges as key drivers, fostering technological innovation through knowledge spillovers. Early adopters, including urban users and ride-hailing services, demonstrate the importance of green market sensing in shaping demand. Major barriers include limited charging infrastructure, high upfront costs, and low public awareness. Additionally, we find that circular economic practices, such as battery recycling and repurpose energy storage, offer sustainability benefits but require stronger policy support. This research extends eco-innovation and innovation diffusion theories by contextualizing them for emerging economies, addressing socio-economic and regulatory barriers. We conclude by providing insights for policymakers and industry leaders.

Original languageEnglish
Article number126021
JournalJournal of Environmental Management
Volume389
Early online date5 Jun 2025
DOIs
Publication statusPublished - 31 Aug 2025

Bibliographical note

Publisher Copyright:
© 2025 The Authors

Keywords

  • Barriers
  • Drivers
  • Eco-innovation
  • Electric vehicle diffusion
  • Emerging economies

ASJC Scopus subject areas

  • Environmental Engineering
  • Waste Management and Disposal
  • Management, Monitoring, Policy and Law

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