Can Renewables Stimulate BEV Demands? - Technical Principles and Cross-Country Empirical Studies

Abstract

Renewables and Battery Electric Vehicles (BEVs) may potentially reduce environmental pollutions and traditional energy consumptions. However, existing literature does not study them holistically, combining technology with economy. In this paper, we first examine complimentary nature of these two technologies in a New York State college. Then, we establish an econometric model to study impacts on BEV demands due to renewables and five other socioeconomic factors, using 2010–2016 panel data from eleven countries. After multi-linear regressions, we observe that renewables impact BEV demands positively; i.e., one percent increment in renewables would yield 2% increment in BEV demands per 100 thousand people. High gasoline prices may lead to high BEV demands. The number of chargers impacts BEV demands positively. Population density does impact BEV demands positively, as well as education levels. The elasticity for GDP per capita is larger than one. Finally, we make recommendations to decision makers to synergistically promote renewables and BEVs. Planners should properly select locations encompassing renewables, chargers, parking facilities, highway rest areas, shopping centers and community activity centers.