An MIT study published in Nature Communications in September found that businesses near electric vehicle (EV) charging stations within 500 meters or 0.3 miles away from the storefront saw increased revenue from 2019–2023. Increased spending during this period saw monetary benefits for local businesses in affluent and underserved areas.
Researchers gathered data from 140,000 California businesses and 4,000 EV charging stations.
“Results show that installing one EVCS boosts annual spending at a nearby establishment by 1.4% ($1,478) in 2019 and 0.8% ($404) from January 2021 to June 2023,” the study’s abstract states. “The effect is more pronounced when a point of interest (POI) is within 100 meters of an EVCS, with spending increasing by 2.7% in 2019 and 3.2% from January 2021 to June 2023 for that POI. Public EVCS tend to attract higher-income, exploratory visitors, and local residents.”
The two most-populated cities — Los Angeles and San Francisco — served as the controlled variables in the experiment. Charging stations within 100 meters of the business saw some kind of monetary benefit.
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“Specifically, the introduction of an additional charging port resulted in a 0.21% increase in customer count and a 0.25% increase in spending in 2019,” the study said. “In the subsequent period spanning 2021–2023, although the effects are somewhat diminished, they remain statistically significant, yielding a 0.14% increase in customer count and a 0.16% increase in spending.”
“The moderation in magnitude during this period might be attributed to factors such as constraints on customer buying power influenced by the COVID-19 pandemic, as well as variations in the utilization rate of public EV chargers over time,” the study continued.
Essentially, the researchers found that if EV chargers are closer to places of business like grocery stores, restaurants, and retail spaces, they are likely to see some kind of monetary gain.
The effect is being felt in affluent neighborhoods and disadvantaged areas.
The extra spending per small company may not seem like much, but it could go a long way in helping a business’s expenses. According to the study, the cumulative increase for an area translated to thousands: around $23,000 in 2019 and about $3,400 per year from 2021 through June 2023.
Wealthier people who were early adopters of EVs contributed the most between 2019–2021, but with the passage of more federal EV incentives, 2021–2023 saw expanded public charging. More stations are set up in multi-unit housing complexes, parking garages, and commercial areas. Starbucks was one business that set up several charging stations across its West Coast storefronts.
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EV charging stations offer a diverse range of economic benefits. The study’s authors believe that EV charging stations should start to follow the gas station model more. They’ll be able to create more public charging access and provide more revenue to underprivileged areas. Some rest stops like Buc-ee’s have a mix of EV chargers and gas pumps.
More EVs are not only good for business but also good for emissions. Research from the University of California, Berkeley, shows that EVs drive down emissions, making underserved communities healthier in the process. The increased revenue would kickstart an economic revitalization of these areas. Cost-sharing policies could also be enacted to spur further profitability.
It should be noted that the study was limited to California. The same rate of local spending in other states or countries needs to be considered, along with the number of EVs on the road in these places.
