The synergy between electric vehicle and electricity generation mix: A path to sustainable transportation

Abstract

The integration of clean energy in the power sector and electric vehicles (EVs) in the transportation sector can reduce CO₂ emissions. This study, thus, seeks to examine the effects of various renewable and non-renewable sources on the proliferation of EV sales. The paper does empirical analysis using a panel dataset that includes 29 economies spanning from 2011 to 2021. The study employs panel-ARDL, fixed effect, and panel quantile regression (PQR) methods. The findings reveal that the EV sales are influenced by the mix of electricity generation. Fossil fuel-derived electricity has an adverse effect on EV sales, whereas green energy sources have a positive impact on EV growth. Further, the sales of EVs are adversely impacted by carbon emissions from the power generation. Additional cointegration test results show a long-term association between the variables. The findings highlight the relevance of renewable energy in boosting EV sales, providing valuable insights for policymakers and manufacturers.