Influence of human capital, urbanization, fuel imports and other macroeconomic factors on electric vehicle adoption

Given that the transport sector is one of the largest emitters of CO₂, promoting the growth of electric vehicles is an option in the fight against climate change, and individual policies need to develop appropriate measures. The study examined the factors influencing the spread of electric passenger cars using panel data from 2012 to 2021 in 18 European countries. Electricity prices, urbanization, fuel imports, real GDP per capita, human capital and household saving rate were included in the multivariable non-linear model. To the best of our knowledge, there is no previous study on the impact of household savings and the inclusion of these variables in one model for the sample of selected countries and periods. Based on the results, human capital, household savings, and urbanization have a significant positive effect on the spread of electric cars, while fuel import has a significant negative effect. The biggest impact was found on urbanization and human capital. Reducing dependence on fuel imports can positively affect the uptake of electric vehicles. At the same time, providing information on the environmental impact of electric vehicles and policies that support investment in human capital can also have a favourable indirect effect on the uptake of electric vehicles.