Toward sustainable cities: Where the electric vehicle users reside matters

Abstract

This paper investigates how different location patterns of electric vehicle (EV) users affect the outcomes of an urban-space economy. In a linear city where firms and residents compete for land, I show that the location patterns of EV users exert significant impact on traffic pollution externalities and urban land rent revenues. In particular, the urban spatial structure with EV users residing in the suburbs (instead of the center) is associated with a better urban environment and higher land rent revenues. From society’s point of view, the increased land rents may be levied by governments to subsidize suburban residents in buying EVs or to invest in building charging stations, achieving higher efficiency.