Decarbonizing Maharashtra: An Integrated Analysis of the State’s Electric Vehicle Policy to Evaluate Economic and Environmental Impacts

This report offers a comprehensive analysis of the short-to-medium-term economic and environmental impacts of progressive electric vehicle (EV) adoption in Maharashtra. Using the E3-India model, four progressive EV adoption scenarios were developed to evaluate the economic and environmental impacts by 2030. The findings indicate that by 2030, Maharashtra witnesses GDP growth and job creation driven by EV adoption and complementary investments in battery manufacturing and renewable energy (RE) capacity. A more ambitious EV policy correlates with greater benefits, including a potential GDP increase of up to 0.76% and the creation of as many as 244,000 jobs. However, on the environmental front, Maharashtra’s current power sector decarbonization targets will be insufficient to achieve broad regional decarbonization in the short to medium term. An optimized scenario suggests that the state will need to install an additional 2.3 GW to 6.8 GW of solar capacity to offset the carbon emissions resulting from progressive EV adoption. These renewable energy-optimized scenarios also reveal marginal improvements in economic outcomes, including GDP and employment. Overall, the analysis provides strong evidence that despite efforts to expand renewable energy capacity, the continued reliance on coal in Maharashtra’s energy mix will impede significant emissions reductions, particularly as electricity demand grows with increased EV usage. As a result, further green mandates and policy interventions will be essential to mitigate emissions and ensure alignment with the state’s broader climate goals, without compromising the state’s economic growth ambitions. For further details please contact : kakali.mukhopadhyay@mcgill.ca

Version: October 2024

Authors & Contributors: Kakali Mukhopadhyay, Surabhi Joshi, Vishnu S Prabhu