An empirical analysis of plug-in electric vehicle adoption in Europe

Electric vehicles (EVs) can help decrease greenhouse gas emissions and air pollution from passenger cars. This thesis examines factors that influence the adoption of plug-in electric vehicles (PEVs) in Europe. Market shares of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) are analyzed in two separate regressions using a fixed effects method. The dataset covers 26 countries from 2010 to 2016. Variables are identified by reviewing previous literature on EV adoption and include financial incentives, charging infrastructure, fuel price and other socioeconomic factors. The results of the analysis suggest that purchase incentives, charging infrastructure, education and population density determine BEV adoption. Only charging infrastructure has an independent effect on PHEV adoption while incentives are significant in interactions. The effect of fuel price depends on the levels of other variables.