Political Economy Analysis On Fuel-efficient Public Transportation At Dhaka

Dhaka’s severe traffic congestion, declining air quality, and rising CO₂ emissions present urgent challenges for sustainable urban mobility. This paper conducts a political economy analysis (PEA) of fuel-efficient vehicle (FEV) promotion in the capital, where transport contributes 14% of national GHG emissions. With an average car speed dropping to 7 km/h and 3.2 million working hours lost daily—translating to an annual economic loss of USD 2.68 billion—the inefficiencies of Dhaka’s public transport are deeply rooted in weak governance, vested political interests, and informal institutional practices. Despite targets to reduce transport sector emissions by 3.4 million tons by 2030, policies like the Electric Motor Vehicle Registration Guideline (2023) and the Automobile Industry Development Policy (2021) remain poorly implemented. The study, based on 429 commuter surveys and 20 stakeholder interviews, finds low awareness of FEV benefits and minimal infrastructure readiness, including limited EV charging capacity. The paper calls for reform-driven incentives, equitable financing, regulatory clarity, and stakeholder coordination to transition Dhaka’s public transport towards fuel efficiency and climate resilience.

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Political Economy Analysis on Fuel-Efficient Public Transportation at Dhaka-Report RR01122.

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