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Effects of Electric Vehicle Charging Stations on the Economic Vitality of Local Businesses

Effects of Electric Vehicle Charging Stations on the Economic Vitality of Local Businesses

Full Title: Effects of Electric Vehicle Charging Stations on the Economic Vitality of Local Businesses
Author(s): Yunhan Zheng, David R. Keith, Shenhao Wang, Mi Diao, and Jinhua Zhao
Publisher(s): Nature Communications
Publication Date: September 4, 2024
Full Text: Download Resource
Description (excerpt):

Electric vehicle charging stations (EVCS) are essential for promoting cleaner transportation by facilitating electric vehicle recharging. This study explores their broader economic impact on nearby businesses, analyzing data from over 4000 EVCS and 140,000 business establishments in California. Results show that installing one EVCS boosts annual spending at a nearby establishment by 1.4% ($1,478) in 2019 and 0.8% ($404) from January 2021 to June 2023. The effect is more pronounced when a point of interest (POI) is within 100 meters of an EVCS, with spending increasing by 2.7% in 2019 and 3.2% from January 2021 to June 2023 for that POI.

Public EVCS tend to attract higher-income, exploratory visitors, and local residents. Moreover, they notably enhance businesses in underprivileged areas, defined as disadvantaged and/or low-income areas designated by both California and Justice40, indicating the importance of expanding EVCS in such communities. This study highlights EVCS as drivers of local economic growth and stresses the economic benefits of multi-host EVCS setups.

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