How does population agglomeration influence the adoption of new energy vehicles? Evidence from 290 cities in China

Abstract

The adoption of new energy vehicles (NEVs) plays a crucial role in achieving zero-emission transportation goals. However, limited attention has been given to the influence of urban spatial structure on NEV adoption. This study aims to fill this research gap by examining the relationship between urban population agglomeration and NEV adoption. Using vehicle sales data from 290 Chinese cities spanning the period from 2016 to 2019, we employ high spatial resolution population distribution data to construct a city-level indicator of population agglomeration and investigate its impact on the sales shares of NEVs. Through Two-stage Least Squares (2SLS) regressions, our findings reveal that a 1 % increase in population agglomeration is associated with an increase of 0.73 % in the sales shares of battery electric vehicles (BEVs) and an increase of 0.46 % in the sales shares of hybrid electric vehicles (HEVs). Furthermore, we observe that the relationship between agglomeration and NEV sales shares is moderated by urban size and temperature. These results provide valuable insights for policymakers seeking to promote NEV adoption and enhance sustainable urban planning practices.