The Impact of Electric Vehicles on Urban Economies

Abstract

Rapid urbanization has resulted in the expansion of cities, favouring unsustainable personal travel. The automotive sector is one of the critical sources of urban pollution and greenhouse gas emissions which both have a negative impact on the health of people. However, the adoption of electric vehicles (EV) answers the question to cope with these negative aspects. EVs have zero tailpipe emissions and reduce greenhouse gas emissions from vehicle operation. In addition, the uptake of EVs reduces the dependency on oil-based resources in a city, which fosters rational utilization of resources worldwide. Thus, several strategic actions have been implemented to promote the adoption of EVs. A substantial number of national incentives offered for EV adoption, including direct purchase subsidy, exemption from ownership quota, free licence plate registration for electric vehicles, preferential vehicle and vessel tax and refuelling policies. In addition to national interventions, several local incentives typically are put in place for a limited period of time, but proved to have a significant impact on the rapid growth of the EV market in China. It is believed that the expansion of the EV market associated with national and local interventions has not received a proper attention and has the potential to change the dynamics of urban economies.

Keywords - electric vehicles, urban economies, greenhouse gas emissions, pollution reduction, resource utilization, national incentives, EV market growth, sustainable transport.