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Electric vehicle usage, pollution damages, and the electricity price elasticity of driving

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  • Nehiba, Cody

Abstract

I study battery electric vehicle (BEV) usage and ownership characteristics with fundamental implications for the electrification of passenger transportation. Using data covering the entire BEV population in New York, I quantify BEV mileage and electricity consumption and highlight the important role of vehicle utilization in contributing to real-world pollution damages and their spatial variation. I then study the factors influencing how much BEVs are driven with a focus on estimating the electricity price elasticity of BEV mileage. Understanding how drivers respond to these changes in operating costs may help align the social and private costs of BEV driving and illustrates how electric utilities may affect transportation outcomes in the future. I find a 10% increase in residential electricity prices reduces mileage by 1%, but responsiveness falls as public charging stations—where prices are often decoupled from electricity costs—become available.

Suggested Citation

  • Nehiba, Cody, 2024. "Electric vehicle usage, pollution damages, and the electricity price elasticity of driving," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:jeeman:v:124:y:2024:i:c:s009506962300133x
    DOI: 10.1016/j.jeem.2023.102915
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    Cited by:

    1. Grigolon, Laura & Park, Eunseong & Remmy, Kevin, 2024. "Fueling electrification: The impact of gas prices on hybrid car usage," ZEW Discussion Papers 24-017, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    Electric vehicles; Electricity prices; Travel demand; Air pollution;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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