Abstract for: Quantifying socio-macroeconomic impacts of electric vehicle adoption in Mexico

The EV policies in Mexico aim to cut GHG emissions and reduce fossil fuel dependence, but challenges like high oil production, a fossil-fuel-dependent fleet, and fuel subsidies hinder progress. Assessing socio-macroeconomic impacts is crucial to balancing climate goals with economic realities. Using the Energy Policy Simulator (EPS), an IAM based on system dynamics, we evaluate three scenarios to measure effects on GHG emissions, GDP growth, and job creation. Comparing outcomes across scenarios provides insights into the most effective strategies for a sustainable energy transition and economic development in Mexico. Scenario 3 (Economic Recovery) is the most effective, cutting emissions to 462 Mt CO2e by 2050 while boosting GDP by $48 billion and creating 753000 jobs. Investment-driven policies outperform mandates (Scenario 1) and subsidies (Scenario 2) in balancing environmental and economic goals. These findings underscore the importance of integrating targeted investments in clean technology and infrastructure to ensure a balanced transition toward sustainability. Policymakers should prioritize holistic strategies that align climate objectives with economic resilience to maximize long-term benefits.