Macroeconomic and environmental implications of Electric Vehicle and Green Hydrogen Policy for the state of Maharashtra

The state of Maharashtra has strategically advocated two ambitious plans for advancing energy transitions: the expansion of electric vehicles (EVs) and the transition to a green hydrogen-based economy. This comprehensive report delves into the macroeconomic and concurrent environmental implications of these policies over the short to medium term. By analysing the existing economic landscape, it becomes evident that both the EV and hydrogen policies have the potential to yield positive impacts on GDP growth and employment opportunities. However, the environmental outcomes are closely intertwined with the overall grid composition and the judicious utilization of resources such as water and land. The efficacy of the EV-centric transition in reducing carbon emissions hinges on its integration with renewable energy-based charging infrastructure. Similarly, the viability of a green hydrogen transition hinges on the prioritization of renewable energy sources for electrolysis, along with the implementation of conservative policies concerning essential resources like water, firmly integrated within the policy framework. For further details please contact: kakali.mukhopadhyay@mcgill.ca

Series: Maharashtra Climate Action Plan and Net-zero strategies Report III

Version: August 2023

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