Grapevine

Study links EV charging stations to increased local business activity

Countries globally are rapidly transitioning to a cleaner energy future—accelerating their push for electric vehicles alongside ambitious targets to phase out gasoline and diesel in transportation. Global electric car sales surged by around 25% in the first quarter of 2024 from the same period in 2023 and are projected to reach approximately 17 million units by the end of the year, accounting for more than one in five cars sold globally.

In Singapore, under its Singapore Green Plan, all new car registrations will have to be cleaner-energy models by 2030, with a target of 60,000 EVCS by the same year. As an essential infrastructure within the broader push for electric vehicles, a comprehensive understanding of EVCS deployment and associated factors is crucial for policymakers, industry stakeholders, and consumers.

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, in collaboration with the University of Florida, Melbourne Business School, Tongji University, and the Massachusetts Institute of Technology (MIT), have published a study in Nature Communications, one of the first worldwide, that demonstrates the economic benefits of Electric Vehicle Charging Stations (EVCS).

In the paper, titled "Effects of Electric Vehicle Charging Stations on Economic Vitality of Local Businesses," the researchers analyzed data from over 4,000 EVCS and 140,000 business establishments in California, U.S., finding that installing one EVCS boosted spending at nearby establishments by 1.4% in 2019 and 0.8% from January 2021 to June 2023, leading to an overall increase of USD 6.7 million in 2019 and USD 19.5 million between January 2021 and June 2023, with EVCS attracting higher-income, exploratory visitors and residents.

Akin to the successful business practice of having convenience stores at gas stations, the research illustrates that combining accommodation and food services; arts, entertainment, recreation; and retail trade options with EVCS can significantly boost revenue by attracting more customers, thereby enhancing local economic vitality.