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Air quality impacts of EV promotion: Evidence from local charging pile adoption in China

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  • Wang, Ye
  • Yu, Feng
  • Lin, Faqin
  • Feng, Kuo

Abstract

This paper verifies the causal relationship between electric vehicles (EVs) promotion and improvements in air quality in China using the Difference-in-Differences (DID) estimation method. By combining the installation dates of new charging piles within prefecture-level cities with station-level air pollution data, we estimate that the PM2.5 decreased by 3.326 μg/m3 after the installation of new charging piles. Mechanism tests indicate that EV promotion led to a reduction in emissions of pollutants directly associated with fossil fuel vehicles. Although EV promotion increased the sales volume of EVs, it did not exacerbate pollution by causing traffic congestion. Instead, it improved air quality by increasing the EVs proportion within cities. Heterogeneity test results show that improvements in air quality are particularly sensitive to EV promotion in developed regions in China. These findings demonstrate the effectiveness of promoting EVs to reduce air pollution in developing countries.

Suggested Citation

  • Wang, Ye & Yu, Feng & Lin, Faqin & Feng, Kuo, 2025. "Air quality impacts of EV promotion: Evidence from local charging pile adoption in China," Journal of Asian Economics, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:asieco:v:98:y:2025:i:c:s1049007825000466
    DOI: 10.1016/j.asieco.2025.101922
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