Publication Detail

Brief: Do Electricity Prices Affect Electric Vehicle Adoption?



UC ITS Research Reports

Suggested Citation:
Bushnell, James, Erich Muehlegger, David Rapson (2021) Brief: Do Electricity Prices Affect Electric Vehicle Adoption?. Institute of Transportation Studies, University of California, Davis, Brief UCD-ITS-RR-21-38

The operational costs of electric vehicles are lower than those of gas-powered vehicles. This advantage is often cited by manufacturers, advocates, and policy-makers as a significant benefit of driving electric vehicles. Yet, the question of how consumers value operational costs when purchasing an electric vehicle is largely unexplored. While prior research has suggested that gasoline prices are an important factor for conventional vehicle buyers, consumers may not have the same awareness of electricity prices as they do for salient gasoline prices. The question of whether consumers accurately assess the costs and benefits of using electricity as a transportation fuel has important implications for electric vehicle adoption and for achieving deep decarbonization of the transportation sector through electrification.

Key words: Electric vehicles, prices, operating costs, demand, electricity, gasoline, empirical methods, consumer behavior