Researchers from the Mens, Manus and Machina (M3S) Interdisciplinary Research Group (IRG) of Singapore-MIT Alliance for Research and Technology (SMART), in collaboration with the University of Florida, Melbourne Business School, Tongji University, and the Massachusetts Institute of Technology (MIT), have published a study demonstrating the economic benefits of Electric Vehicle Charging Stations (EVCS).

In a paper titled “Effects of Electric Vehicle Charging Stations on Economic Vitality of Local Businesses” in the Nature Communications journal, the researchers analyzed data from over 4,000 EVCS and 140,000 business establishments in California. The researchers found that installing one EVCS boosted spending at nearby establishments by 1.4% in 2019 and 0.8% from January 2021 to June 2023, leading to an overall increase of $6.7 million in 2019 and $19.5 million between January 2021 and June 2023. Researchers said that EVCS attracted higher-income, exploratory visitors and residents.

Researchers said that global electric car sales surged by around 25% in the first quarter of 2024 from the same period in 2023 and are projected to reach approximately 17 million units by the end of the year, accounting for more than one in five cars sold globally. In Singapore, under its Singapore Green Plan, all new car registrations will have to be cleaner-energy models by 2030, with a target of 60,000 EVCS by the same year.

According to researchers, these findings illustrate that combining accommodation and food services; arts, entertainment, recreation; and retail trade options with EVCS can significantly boost revenue by attracting more customers, thereby enhancing local economic vitality. Using a ‘difference-in-differences’ methodology, the researchers established a causal link between EVCS presence and favorable economic outcomes.

While EV owners were more likely to be from higher-income populations, with EVCS attracting higher-income visitors, the economic benefits were not confined to high-income neighborhoods, the researchers said. The installation of EVCS also stimulated consumer spending in underprivileged areas, serving as a potential catalyst to enhance economic vitality for businesses within these communities. The study revealed that strategically positioned EVCS could significantly impact urban planning and economic development.

The research team said it employed a comprehensive analytical framework, analyzing real-world data from various regions in California, using advanced statistical techniques, machine learning, and economic forecasting. The team said approach sets a new benchmark for EV infrastructure research and provides a foundation for future studies on the broader impacts of EV adoption.

“Uncovering the synergistic relationship between EVCS and urban planning is essential for the creation of sustainable cities. Our research emphasizes the importance of a comprehensive infrastructure approach that incorporates EVCS into broader mobility and land-use strategies,” said Dr Yunhan Zheng, postdoctoral associate at SMART M3S, first and corresponding author of the paper. “By optimising EVCS placement and considering factors such as public transportation accessibility and green spaces, we can develop more livable and climate-resilient urban environments.”

Moving forward, SMART M3S’ work will concentrate on conducting further studies on the placement of future EVCS in Singapore. Building on insights from current research, the team said it aims to maximize the impact of EVCS on local economies by positioning these stations to stimulate economic growth and development within Singapore and globally.

The research is carried out by SMART and supported by the National Research Foundation (NRF) Singapore under its Campus for Research Excellence And Technological Enterprise (CREATE) program.