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The relationship between electric vehicle adoption and electricity consumption: Evidence from Europe

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  • Nel, Jacobus
  • Inglesi-Lotz, Roula

Abstract

The relationship between electric vehicle (EV) stock and electricity consumption is complex, with many factors influencing both variables. Furthermore, higher EV adoption can have adverse and unforeseen impacts on electrical networks and generation capacity requirements, necessitating the development of proactive policies and tariff decisions. To this end, this study investigates this relationship for 20 European countries from 2000 until 2022, utilising an Error Correction Model to estimate the impact of EV sales on electricity consumption. Results indicate positive and statistically significant results for certain sub-samples, which can have far-reaching implications for policymakers and generation and network capacity planners.

Suggested Citation

  • Nel, Jacobus & Inglesi-Lotz, Roula, 2025. "The relationship between electric vehicle adoption and electricity consumption: Evidence from Europe," Utilities Policy, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:juipol:v:96:y:2025:i:c:s095717872500147x
    DOI: 10.1016/j.jup.2025.102032
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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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