What drives electric vehicle adoption? Perspectives from a geospatial and longitudinal study

Electric vehicles represent an innovative solution with the potential to reduce emissions contributing to climate change. However, the global EV market is reaching a critical point in its life cycle, where adoption rates are lower than projected, necessitating an understanding of the key factors affecting EV adoption decisions among the next generation of consumers. In this article, we use a novel geocoded dataset of charging stations and EV sales to investigate how charging infrastructure shapes EV adoption over time in areas with diverse demographics. Employing an instrumental variable approach to address potential endogeneity and fixed effects models to account for unobserved heterogeneity across regions and time periods, we identify evidence supporting the critical role of efficient and accessible charging stations. After controlling for a wide range of socio-economic factors and commute behaviours, charging infrastructure remains an economically and statistically significant determinant of EV adoption rates. The temporal and spatial variations of this effect are also quantified, providing a robust foundation for policy implications.