Decarbonizing Transportation: Cross-Country Evidence on Electric Vehicle Sales and Carbon Dioxide Emissions

The increasing atmospheric carbon dioxide (CO2) emissions are widely recognized as the primary driving force behind the phenomenon of global warming. Considering environmental concerns and the depletion of fossil fuel reserves, the use of electric vehicles (EVs) in transportation has emerged as one of the most promising technological alternatives to conventional gasoline-powered cars. Compared to their gasoline counterparts, EVs significantly reduce the costs associated with air pollution and mitigate adverse effects on human health. Owing to these characteristics, EVs have become one of the key components of the transition toward a sustainable future, while also steering the transformation of the global automotive industry. This transition is reshaping the structure of the global automobile industry. Many countries aim to achieve their greenhouse gas reduction targets by promoting the adoption of EVs. This study aims to empirically examine the effects of electric vehicles on CO2 emissions in 15 high-income countries during the period 2010–2023, highlighting both short- and long-term environmental impacts. The analysis also considers economic and socio-demographic variables such as gross domestic product (GDP), urbanization, and fossil fuel consumption. The findings indicate that the share of EVs significantly reduces CO2 emissions, whereas sales have a short-term increasing effect.