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The High Cost of Low Range: Estimating the Hidden Cost of Range Anxiety in Electric Vehicles

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  • Jonathan B. Scott
  • Molin Qin

Abstract

Electric vehicle (EV) drivers experience range anxiety (RA) due to a gap between latent travel demand and battery range. Low fuel prices or limited range exacerbate RA. Range relevance diminishes under high fuel prices, as driving demand is suppressed, while low fuel prices have small effects on RA when range is sufficiently high. We formalize and estimate RA, leveraging the implicit interaction between local electricity prices and range. Results suggest average prospective EV consumers expect $2500–3400/year welfare costs through the RA mechanism. These estimates have strong implications for policies targeting EV ownership, underscoring another channel EV costs exceed conventional vehicles.

Suggested Citation

  • Jonathan B. Scott & Molin Qin, 2026. "The High Cost of Low Range: Estimating the Hidden Cost of Range Anxiety in Electric Vehicles," Journal of Industrial Economics, Wiley Blackwell, vol. 74(1), pages 140-158, March.
    • Handle: RePEc:bla:jindec:v:74:y:2026:i:1:p:140-158
    DOI: 10.1111/joie.70015
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