A recent MIT study found that electric vehicle charging stations significantly increase consumer spending at nearby businesses.
The study, which analyzed data from over 4,000 charging stations and 140,000 businesses in California, found that the presence of EV chargers led to an average annual spending increase of about $1,500 per business in 2019 and approximately $400 per business between January 2021 and June 2023.
The research highlights that the economic benefits of EV charging stations are particularly pronounced for businesses located within 100 yards of the chargers and those in low-income areas. This finding underscores the potential for EV infrastructure to support local economies, especially in underserved communities.
Lead author Yunhan Zheng, a postdoctoral researcher at the Singapore-MIT Alliance for Research and Technology (SMART), emphasized the broader implications of the study.
“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,” Zheng said.
The study’s findings suggest that EV charging stations could diversify income streams for charger providers and site hosts, leading to more informed business models.
The researchers used anonymized credit and debit card transaction data to measure changes in consumer spending, providing a robust empirical basis for their findings.
These findings hold a lesson for charging station developers looking to improve the profitability of their projects.
“The joint gas station and convenience store business model could also be adopted to EV charging stations,” Zheng said. “Traditionally, many gas stations are affiliated with retail store chains, which enables owners to both sell fuel and attract customers to diversify their revenue stream. EV charging providers could consider a similar approach to internalize the positive impact of EV charging stations.”
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