Green wheels in motion: Electric vehicle sales in the path to decarbonization

The transportation sector is the second-largest carbon emitter after the power sector; achieving decarbonization goals through electric and hybrid vehicles is crucial. This study explores the relationship between electric vehicle sales, economic growth, population, urbanization, and carbon emissions, framed within the Environmental Kuznets Curve and Ecological Modernization Theory. This study adopts the Method of Moments Quantile Regression techneque with fixed effects, analysing data from 15 nations between 2010 and 2023. The spatial analysis reveals notable growth in electric vehicle sales alongside substantial changes in energy consumption trends. Empirical findings indicate that carbon emissions adversely affect electric vehicle sales in the lower quantiles. However, its influence diminishes in upper quantiles as sales rise in these countries. Simultaneously, the expansion of the economy and the rise in renewable energy usage drive electric vehicle sales across all quantiles. These results highlight the need for policy intervention to promote renewable energy, investments, and public awareness to enhance sustainable transportation in these countries.