Toronto, Ontario — A new study from MIT researchers indicates that charging stations for electric vehicles (EVs) can boost income for businesses by an average of 1.4 percent.
Specifically, the study found that in California where data was collected, opening a charging station boosted annual spending at each nearby business by an average of about $1,500 in 2019 and then by about $400 from between January 2021 and June 2023.
Lead author Yunhan Zheng reflected on the data by commenting that “these increases are equal to a significant chunk of the cost of installing an EV charger, and I hope this study sheds light on these economic benefits. These findings could also diversify the income stream for charger providers and site hosts, and lead to more informed business models for EV charging stations.”
To collect data for the study, researchers collected data from over 4,000 charging stations in California and 140,000 businesses, relying on anonymized credit and debit card transactions to measure changes in consumer spending.
Additionally, to judge whether charging stations caused customer spending increases, the researchers compared data from businesses within 500 metres of new charging stations before and after their installation. They also analyzed transactions from similar businesses in the same time frame that weren’t near charging stations.”
As a result, researchers found that installing a charging station boosted annual spending at nearby businesses by an average of 1.4 percent in 2019. This translates to almost $23,000 in cumulative spending in 2019.
Researchers attribute the decline in rates from 2019, to the 2021 to 2023 period to the continued effects of the pandemic as well as the potential saturation of EV chargers in the area, leading to lower utilization in concentrated areas.
However, despite declines, during both periods, the spending increases were highest consistently for businesses within about a football field’s distance from the new stations. They were also significant for businesses in disadvantaged and low-income areas.
To see more information on the study, click here.
