The role of air pollution in electric vehicle adoption: Evidence from China

This study provides a comprehensive analysis of the mechanisms through which air pollution influences consumer adoption of electric vehicles (EVs) in China. Utilizing the Air Quality Index (AQI) and EV sales data from 50 Chinese cities from 2010 to 2019, we apply a multiple regression model to investigate the direct and indirect impacts of air pollution on EV adoption. By analyzing data from the AQI and EV sales across 50 Chinese cities between 2010 and 2019, we apply a multiple regression model to dissect the direct and indirect effects of air pollution on the adoption of EVs. We find that the health risks associated with air pollution, such as respiratory and cardiovascular diseases, significantly sway consumer behavior towards EVs. Concerns over health and the financial burden of air pollution-related illnesses drive consumers, especially in wealthier regions, to choose EVs for healthier transportation. Additionally, we note an indirect mechanism: increased public and government awareness of environmental issues. This heightened awareness, coupled with policies promoting EV adoption, indirectly bolsters consumer interest in EVs, acknowledging their role in enhancing air quality. These findings offer vital insights for formulating sustainable transportation policies and urban planning strategies, especially in contexts of severe air pollution.