The Impact of Battery-Electric Vehicles on Energy Consumption: A Macroeconomic Evidence from 29 European Countries

Abstract

The impact of battery electric vehicles (BEV) on energy consumption was researched modeling energy consumption against BEVs, Gross Domestic Product (GDP) and e-commerce, using annual data from 2010 to 2020, for twenty-nine European countries, with quantile regression and OLS with fixed effects econometric techniques. It was found that GDP and e-commerce impact energy consumption positively, and BEVs reduce energy consumption. These findings support that efficiency gains could not reduce energy consumption, and e-commerce, via extra packaging, further usage of computer processors, and cryptocurrencies to purchase products are hampering the environment. BEVs were revealed to be more energy-efficient than conventional cars. Thus, energy conservation policies to combat global warming and climate change arise. First, policies should offer an alternative packaging system to lower the negative environmental impacts of additional packaging for online purchases, stimulate smaller packages, free up additional space on the transport, enhance the delivery system efficiency, and promote alternative delivery systems. Second, offering subsidies for purchasing BEVs or tax rebates will increase the adoption rate of electric vehicles and combine this policy with the CO2 emissions’ regulations to stimulate the demand for BEVs. Finally, affordable charging points should be provided and customer awareness of the benefits of BEVs should be improved.