Researchers from SMART, in collaboration with global institutions, have unveiled a pioneering study demonstrating that the presence of Electric Vehicle Charging Stations (EVCS) substantially boosts local business spending and economic vitality. The findings offer valuable insights for policymakers and industry stakeholders aiming to integrate EV infrastructure into sustainable urban development strategies.
Researchers from the Mens, Manus and Machina (M3S) Interdisciplinary Research Group (IRG) of Singapore-MIT Alliance for Research and Technology (SMART), MIT’s research enterprise in Singapore, along with collaborators from the University of Florida, Melbourne Business School, Tongji University and MIT, have published a groundbreaking study showcasing the economic advantages of Electric Vehicle Charging Stations (EVCS). This study, one of the first of its kind globally, has vital implications as countries transition towards cleaner energy and electric vehicles.
As the world pivots toward a cleaner energy future, the push for electric vehicles (EV) has gained unprecedented momentum. Global electric car sales surged by approximately 25% in the first quarter of 2024 compared to the same period in 2023. Sales are projected to reach around 17 million units by the end of the year, making up over 20% of all cars sold worldwide. Singapore, under its Green Plan, aims for all new car registrations to be cleaner-energy models by 2030, targeting the installation of 60,000 EVCS by the same year.
The study, published in the journal Nature Communications, analyzed data from over 4,000 EVCS and 140,000 business establishments in California.
The researchers found that installing one EVCS increased spending at nearby establishments by 1.4% in 2019 and 0.8% from January 2021 to June 2023, contributing to an overall increase of $6.7 million in 2019 and $19.5 million between January 2021 and June 2023.
This research highlights that, similar to the widespread business model of combining gas stations with convenience stores, EVCS can significantly boost revenue by attracting more consumers, thereby enhancing local economic vitality.
“Uncovering the synergistic relationship between EVCS and urban planning is essential for the creation of sustainable cities. Our research emphasises the importance of a comprehensive infrastructure approach that incorporates EVCS into broader mobility and land-use strategies,” Yunhan Zheng, a postdoctoral associate at SMART M3S and the first and corresponding author of the paper, said in a news release.
The study utilized advanced statistical techniques and machine learning to ensure high confidence in its findings. These methods established a causal link between the presence of EVCS and favorable economic outcomes, demonstrating that EVCS installations also stimulate consumer spending in underprivileged areas, potentially enhancing economic vitality for businesses in these communities.
“Electric Vehicle Charging Stations (EVCS) can be powerful catalysts for economic growth, particularly in underprivileged areas, and our findings provide useful insights for policymakers and stakeholders committed to advancing clean energy goals while fostering economic development,” Jinhua Zhao, a professor at MIT and lead principal investigator at SMART M3S, said in the news release. “Drawing on insights from research and theoretical frameworks, strategically deployed EVCS can stimulate job creation, attract new businesses and enhance property values, resulting in economic and social benefits of clean energy infrastructure.”
The strategic positioning of EVCS offers a significant impact on urban planning and economic development. For EVCS operators, this research provides a pathway to create business models and partnerships with local businesses to drive economic growth. For policymakers, particularly in regions with budding EV markets like Singapore, these insights can guide the integration of economic benefits into planning and investment strategies.
Looking forward, SMART M3S intends to further this research to optimize the placement of future EVCS in Singapore. By leveraging insights from this study, the team aims to maximize positive economic impacts by strategically placing EVCS to stimulate economic development locally and globally.