Economic Feasibility of Electric Public Transportation Systems in Developing Countries

Abstract

The transition to electric public transportation systems has emerged as a strategic priority for many developing countries seeking to reduce urban air pollution, lower greenhouse gas emissions, and decrease dependence on imported fossil fuels. Electric buses, trams, and metro systems offer substantial environmental and long-term operational benefits. However, their adoption in resource-constrained economies raises critical questions regarding financial sustainability, infrastructure readiness, and institutional capacity. the economic feasibility of deploying electric public transportation systems in developing countries, with particular attention to capital investment requirements, lifecycle cost analysis, and funding mechanisms. Although electric fleets typically involve higher upfront procurement and infrastructure costs compared to diesel-based systems, lower fuel expenses, reduced maintenance requirements, and longer vehicle lifespans can improve total cost efficiency over time. The feasibility of such systems depends heavily on electricity pricing structures, grid reliability, battery replacement costs, and the availability of concessional financing or public-private partnerships.