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

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. • Investigates the relationship of electric vehicles (EVs) on electricity demanded. • Augments an elasticity of demand model to include EVs. • Derives an error correction model to estimate models for non-stationary data. • Results indicate a positive and significant relationship for certain sub-samples. • Privately installed solar panels could offset EV charging at the country-level.