Fuel Efficiency and E-Mobility Policy Development in Sri Lanka

Transport is one of the sectors targeted to reduce CO 2 emissions and where adaptation measures are needed to reduce the global vulnerability to climatic changes. This research was designed to understand the limitations of conducting an impact analysis of policy options for vehicles’ fuel economy and discuss opportunities for fuel economy baseline and policy development including government foresight and global commitments. This paper proposes a two-stage methodology namely fuel economy baseline and System Dynamics (SD). This amalgamated framework allows policymakers to review and analyse the impacts and relationships of past and current fiscal policies on energy-efficient vehicles. Empirical evidence suggests that government intervention and leadership will be a major requirement for developing a baseline for fuel economy. Public awareness and decision making should be considered in policy and planning because people do not easily link policies with fuel economy. These results would be useful in understanding consumer behaviour and market responses to fiscal policies that will impact the vehicle fuel economy and emissions in Sri Lanka.