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Electric vehicle usage, pollution damages, and the electricity price elasticity of driving

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  • Nehiba, Cody

Abstract

I study battery electric vehicle (BEV) usage and ownership characteristics with fundamental implications for the electrification of passenger transportation. Using data covering the entire BEV population in New York, I quantify BEV mileage and electricity consumption and highlight the important role of vehicle utilization in contributing to real-world pollution damages and their spatial variation. I then study the factors influencing how much BEVs are driven with a focus on estimating the electricity price elasticity of BEV mileage. Understanding how drivers respond to these changes in operating costs may help align the social and private costs of BEV driving and illustrates how electric utilities may affect transportation outcomes in the future. I find a 10% increase in residential electricity prices reduces mileage by 1%, but responsiveness falls as public charging stations—where prices are often decoupled from electricity costs—become available.

Suggested Citation

  • Nehiba, Cody, 2024. "Electric vehicle usage, pollution damages, and the electricity price elasticity of driving," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:jeeman:v:124:y:2024:i:c:s009506962300133x
    DOI: 10.1016/j.jeem.2023.102915
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    References listed on IDEAS

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    Cited by:

    1. Mamkhezri, Jamal & Khezri, Mohsen, 2026. "Corrigendum to “Vehicle miles traveled induced demand, rebound effect, and price and income elasticities: A US spatial econometric analysis” [Trans. Pol. 158 (2024), 224–240]," Transport Policy, Elsevier, vol. 181(C).
    2. Nehiba, Cody, 2025. "Within-day variation in the rebound effect from fuel efficiency standards and implications for road congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 199(C).
    3. Grigolon, Laura & Park, Eunseong & Remmy, Kevin, 2024. "Fueling Electrification: The Impact of Gas Prices on Hybrid Car Usage," CEPR Discussion Papers 18806, Centre for Economic Policy Research.
    4. Nehiba, Cody, 2024. "Timing Matters: Estimating within-day variation in the rebound effect," National Center for Environmental Economics-NCEE Working Papers 348907, United States Environmental Protection Agency (EPA).
    5. Johannes Gessner & Wolfgang Habla & Benjamin Rübenacker & Ulrich J. Wagner, 2025. "No Place Like Home: Charging Infrastructure and the Environmental Advantage of Plug-in Hybrid Electric Vehicles," CRC TR 224 Discussion Paper Series crctr224_2025_663, University of Bonn and University of Mannheim, Germany, revised Apr 2026.

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    Keywords

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    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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