The relationship between electric vehicle adoption and electricity consumption: Evidence from Europe

Jacobus Nel and Roula Inglesi-Lotz

Utilities Policy, 2025, vol. 96, issue C

Abstract: The relationship between electric vehicle (EV) stock and electricity consumption is complex, with many factors influencing both variables. Furthermore, higher EV adoption can have adverse and unforeseen impacts on electrical networks and generation capacity requirements, necessitating the development of proactive policies and tariff decisions. To this end, this study investigates this relationship for 20 European countries from 2000 until 2022, utilising an Error Correction Model to estimate the impact of EV sales on electricity consumption. Results indicate positive and statistically significant results for certain sub-samples, which can have far-reaching implications for policymakers and generation and network capacity planners.

Keywords: Electric vehicle adoption; Electricity consumption; Error correction model; Elasticity of electricity demand (search for similar items in EconPapers)
JEL-codes: C23 L94 O13 Q41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:96:y:2025:i:c:s095717872500147x

DOI: 10.1016/j.jup.2025.102032

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