Predicting E-Mobility Adoption in Nepal: An Analytic Hierarchy Process and System Dynamics Approach.
Student: Roshan Yadav
Supervisor: Er. Bishnu Prasad Devkota
Submitted Date:
September, 2026
Abstract
The transition to electric mobility is increasingly important for reducing fossil fuel
dependence, greenhouse gas emissions, and urban air pollution. Nepal has significant
potential for electric vehicle (EV) adoption due to its abundant hydropower resources,
100% green electricity grid and growing interest in sustainable transportation. However,
EV adoption is influenced by interconnected economic, technological, social, policy,
and infrastructure factors. This study aims to identify and prioritize the key factors
influencing EV adoption in Nepal and examine the long-term dynamics of EV market
growth using an integrated Analytic Hierarchy Process (AHP) and System Dynamics
(SD) approach.
The AHP analysis evaluated four main criteria and sixteen sub-criteria influencing EV
adoption based on expert judgments. The results show that economic factors were the
most influential criterion (56.5%), followed by technological (26.2%), social (11.8%),
and policy and infrastructure factors (5.5%). Among the sixteen sub-criteria, purchase
price ranked first (31.9%), followed by operation and maintenance cost (14.8%), driving
range (14.8%), charging infrastructure availability (6.9%), and finance options (6.6%).
These findings indicate that affordability is the dominant consideration influencing EV
adoption in Nepal.
A System Dynamics model was subsequently developed in Vensim software to simulate
EV adoption and vehicle stock dynamics under different scenarios. The model
incorporated EV and internal combustion engine vehicle stocks, vehicle sales, adoption,
scrappage, market share, and policy factors. The simulation results demonstrate that EV
adoption follows a non-linear diffusion pattern and that policy interventions, particularly
those affecting vehicle affordability through import taxation, can significantly influence
the pace of EV adoption and the transition from conventional vehicles to EVs. Overall,
the integrated AHP–SD analysis highlights the importance of reducing upfront costs,
improving financing opportunities through reducing import tax supportive policies to
accelerate Nepal’s transition toward sustainable electric mobility.
Keywords
Electric Vehicle Adoption, Nepal, AHP, System Dynamics, Diffusion, Import Tax, Sustainable Transportation