Article Barriers and Drivers of Transition to Sustainable Public Transport in the Philippines Charmaine Samala Guno 1, Angelie Azcuna Collera 2 and Casper Boongaling Agaton 3,4,* 1 Mindoro State College of Agriculture and Technology, Masipit, Calapan City, Oriental Mindoro 5200, Philippines; [email protected] 2 Center for Human Development, University of Science and Technology of Southern Philippines-Cagayan de Oro Campus, Misamis Oriental 9000, Philippines; [email protected] 3 Copernicus Institute of Sustainable Development, Utrecht University, Princetonlaan 8a, 3584 CB Utrecht, The Netherlands 4 Utrecht School of Economics, Utrecht University, Kriekenpitplein 21-22, 3584 EC Utrecht, The Netherlands * Correspondence: [email protected] Abstract: Electrification of public utility vehicles plays a vital role in the transition towards a more sustainable transport system. However, the adoption of electric vehicles (EVs) encounters varying challenges ranging from financing issues, government policies, and public acceptance. Using the Philippines as a case, this research applies political, economic, social, technological, legal, and environmental (PESTLE) analysis to determine how different drivers affect the adoption of EVs in the public transport system from various transport stakeholders’ vantage points. Survey results identified economic and technological factors as the main barriers to the adoption of electric public transport. This includes high investment and operational costs, lack of charging infrastructure, issues in driving range and use in different terrains, and the availability of EV parts and repair stations. On the other hand, the main enabler is the significant public support for the modernization of the public transport system through EVs, backed up by policy and legal drivers. For a zero-emission public Citation: Guno, C.S.; Collera, A.A.; transport system, this study recommends that the government should invest in sustainable sources Agaton, C.B. Barriers and Drivers of Transition to Sustainable Public of energy, develop more public infrastructure, diversify the transport sector, fund the development Transport in the Philippines. World of locally made EVs, and initiate a massive information campaign in educating the public of its Electr. Veh. J. 2021, 12, 46. https:// advantages. doi.org/10.3390/wevj12010046 Keywords: electric vehicles; PESTLE; public utility vehicle; sustainable transportation; participatory Academic Editor: Aritra Ghosh development; good governance Received: 27 February 2021 Accepted: 17 March 2021 Published: 19 March 2021 1. Introduction In this energy transition era towards a net-zero carbon economy, electrification of Publisher’s Note: MDPI stays neutral the public transport system has been rapidly spreading across countries and various with regard to jurisdictional claims in types of vehicles, from rail to buses and cars. As aviation, marine transportation, and published maps and institutional affil- heavy-duty road vehicles are the most difficult modes to decarbonize, the electrification of iations. passenger cars and public utility vehicles (PUVs) appears to have the potential to decrease greenhouse gas (GHG) emissions and other pollutants. In 2019 alone, electric cars topped 2.1 million, which accounted for 2.6% of global car sales and registered a 40% year-on- year increase [1]. Electric vehicles (EVs) are significantly expanding with the accelerated Copyright: © 2021 by the authors. technological developments in the electrification of two/three-wheelers, buses, and trucks Licensee MDPI, Basel, Switzerland. while the market for them grows [1]. With the displacement of combustion vehicles, EVs are This article is an open access article expected to lessen air pollution, decrease the dependence on oil, and enable the transition distributed under the terms and towards a zero-emission transport sector. Developed countries put considerable efforts conditions of the Creative Commons into making electric mobility more attractive by giving incentives such as tax exemption, Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ one-off registration tax, rebates on the upfront cost of EV, energy bills, and parking fees, 4.0/). purchase subsidy, and developing public charging stations [2–5]. Developing countries, on World Electr. Veh. J. 2021, 12, 46. https://doi.org/10.3390/wevj12010046 https://www.mdpi.com/journal/wevj World Electr. Veh. J. 2021, 12, x 2 of 22 World Electr. Veh. J. 2021, 12, 46 fees, purchase subsidy, and developing public charging stations [2–5]. Developing coun-2 of 22 tries, on the other hand, give limited incentives like purchase subsidy, tax discount or excise duty, discount on the technical-mechanical review and in the compulsory insur- the other hand, give limited incentives like purchase subsidy, tax discount or excise duty, ance, preferential parking, and expansion in the infrastructure of charging points [6–8]. discount on the technical-mechanical review and in the compulsory insurance, preferential In the Philippines, transportation is a key sector that links population and economic parking, and expansion in the infrastructure of charging points [6–8]. centers across the islands consisting of road, rail, maritime, and aviation. While aviation In the Philippines, transportation is a key sector that links population and economic and maritime transport play a crucial role in inter-island mobility, the most popular and centers across the islands consisting of road, rail, maritime, and aviation. While aviation dominantand maritime mode transport of travel play is road a crucial transport role in [9]. inter-island Among mobility,the PUVs the in mostthe country, popular the and jeepney—adominantmode refurbished of travel American is road transport jeep—is [9 the]. Among most popular, the PUVs with in the around country, 270,000 the jeepney— fran- chiseda refurbished units on American the road jeep—isacross the the country, most popular, followed with by around the tricycle—a 270,000 franchised traditional units three- on wheeledthe road rickshaw across the or country, “tuk-tuk”—with followed by 1.6 the mil tricycle—alion units traditionalregistered as three-wheeled motorcycles rickshawand tri- cyclesor “tuk-tuk”—with [6]. While jeepneys 1.6 million and tricycles units registeredare owned asby motorcyclesprivate operators, and tricycles they are [classified6]. While asjeepneys PUVs in and the tricyclescase country are owned as they by are private available operators, for use theyby the are general classified public, as PUVs charge in set the farescase for country every as trip, they and are operate available on forspecific use by routes. the general Other public,modes chargeof road setpublic fares transport for every includetrip, and buses, operate all-utility on specific vehicles, routes. taxis, Other and modes “pedicabs”-non-motorized of road public transport rickshaws include buses,[10]. Withall-utility the rapid vehicles, growth taxis, in economic and “pedicabs”-non-motorized activities and urbanization, rickshaws the PUVs, [10]. along With with the rapid pri- vategrowth vehicles, in economic exponentially activities increased and urbanization, in numbers, the which PUVs, resulted along within poorer private air vehicles,quality andexponentially frequent traffic increased congestion in numbers, in the which cities resulted [6]. To inaddress poorer these air quality problems, and frequent the govern- traffic mentcongestion of the Philippines in the cities implemented [6]. To address several these policies problems, such the as government Clean Air that of the aims Philippines to main- tainimplemented clean air that several meets policies the National such as Air Clean Quality Air thatguidelines, aims to and maintain the PUV clean Modernization air that meets Programthe National (PUVMP) Air Quality which guidelines, replaces the and old the combustion PUV Modernization vehicles (c-PUVs) Program (PUVMP)with more which sus- tainablereplaces electric the old vehicles combustion (e-PUVs) vehicles (see Figure (c-PUVs) 1). withThe program more sustainable features ten electric components vehicles which(e-PUVs) include (see regulatory Figure1). The reform, program route features planning, ten route components rationalization, which include fleet moderniza- regulatory tion,reform, industry route consolidation, planning, route financing, rationalization, pilot implementation, fleet modernization, stakeholder industry support consolidation, mech- anism,financing, and pilotcommunication implementation, [11]. stakeholderIt aims to employ support around mechanism, 100,000 and electric communication tricycles [(e-11]. trikes)It aims annually to employ and around 200,000 100,000 electric electric jeepneys tricycles (e-jeepneys) (e-trikes) or EURO-4 annually jeepneys and 200,000 in the electric next sixjeepneys years, (e-jeepneys)giving “5, 6, or7, EURO-48” incentives, jeepneys including in the next 5% sixsubsidy years, for giving each “5, unit 6, 7,of 8” e-PUV, incentives, 6% interestincluding rate 5% for subsidy purchase for loan each payable unit of e-PUV, in 7 years, 6% interest and an rate equity for purchasesubsidy of loan PHP payable 80 thou- in 7 sandyears, (~USD and an $1500) equity [10]. subsidy Despite of PHP these 80 benefits, thousand transport (~USD$1500) stakeholders [10]. Despite are still these hesitant benefits, to adopttransport e-PUVs stakeholders due to high are investment still hesitant costs, to adopt lack e-PUVs of technical due to and high policy investment