Electric vehicle adoption: urbanization, income, and inequality effects

While prior research identifies urbanization, income, and income inequality as fundamental drivers of electric vehicle (EV) adoption, their complex interactions and underlying mechanisms remain unclear. Using fixed effects negative binomial panel regression, this study investigates how per capita Gross Domestic Product (GDP), and income inequality affect EV adoption at different stages of urban development. The results suggest that income inequality hinders EV adoption, with a more pronounced negative effect in moderately urbanized regions. Higher per capita GDP helps to sustain EV adoption; yet, as urbanization advances, the impact reduces. Urbanization itself and time trends were also consistently associated with increases in EV adoption, which can be attributed to more general changes in charging infrastructure and battery technology. Given these findings, policymakers must focus on equitable provision of charging equipment, targeted subsidies for vulnerable population groups, and inclusive urban planning that fosters just transitions toward sustainable transport.

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