Factors of development of the electric vehicle in the EU countries

Abstract

The development of electric vehicles (EVs) has become a crucial aspect of sustainable transportation systems and greenhouse gas emissions reduction strategy. This research delves into identifying and analyzing factors that affect the growth of EV markets in European Union countries. The study utilizes panel data from 27 EU nations during the period between 2018 and 2021, employing pooled OLS and random effects regression models to evaluate various factors' impact on national EV sales. Independent variables used include national transport taxes, publicly accessible charging stations for electricity, average national energy prices, consumer gasoline prices, gross domestic product per capita, total land area, and population employment rates. Results suggest that these variables have varying impacts on the adoption rate of EVs across EU nations but may still be critical determinants for policymakers seeking to increase their nation's electric vehicle market share. The results show that national transport taxes, the number of publicly accessible power charging stations, gross domestic product per capita, total land area, and consumer prices of gas oil automobile have a statistically significant impact on the development of the electric vehicle market in the EU countries, while the average national price of electrical energy and proportion of the population that is employed do not. These findings can provide valuable insights for policymakers and industry stakeholders to design effective strategies and policies to promote the adoption and development of EVs in the EU countries