Business

EV charging stations boost spending

Interesting Californian study found that an EV charging station boosted annual spending at nearby businesses, with the increase particularly pronounced in low-income areas.

Ev car charging

Conducted by MIT researchers, the study aims to paints a more holistic picture of the benefits of Electric vehicle charging stations (EVCS), beyond environmental factors.

The research paper, entitled “Effects of electric vehicle charging stations on the economic vitality of local businesses” written by Yunhan Zheng et al. (Nature Communications) explores the broader economic impact on nearby businesses of the installation of EV charging stations. The researchers analysed data from over 4000 EVCS and 140,000 business establishments in California. They compared data from businesses within 500 meters of new charging stations before and after their installation. They also analysed transactions from similar businesses in the same time frame that weren’t near charging stations.

The results show that installing one EVCS boosted annual spending at a nearby establishment by 1.4% ($1,478) in 2019 and 0.8% ($404) from January 2021 to June 2023. According to the researchers the effect is even more pronounced when a point of interest (POI) is within 100 meters of an EVCS, with spending increasing by 2.7% in 2019 and 3.2% from January 2021 to June 2023 for that POI.

“Public EVCS tend to attract higher-income, exploratory visitors, and local residents. Moreover, they notably enhance businesses in underprivileged areas, defined as disadvantaged and/or low-income areas designated by both California and Justice, indicating the importance of expanding EVCS in such communities. This study highlights EVCS as drivers of local economic growth and stresses the economic benefits of multi-host EVCS setups”, state the researchers.

Zheng’s extensive research proves that the presence of charging stations brings economic benefits to surrounding communities which may encourage further adoption. Whilst the increases in sales may sound like a small amount per business, it amounts to thousands of dollars in overall consumer spending increases.

The research not only provides a potential new revenue stream for businesses such as garden centres, whom may opt to install EVCS to attract (new) customers, but also highlights the importance for policymakers to develop EV charging stations in marginalised areas, because they not only foster a cleaner environment, but also serve as a catalyst for enhanced economic vitality.