Increasing the adoption of electric vehicles may exacerbate carbon emissions from power plants in China

Abstract

Summary China has committed to electric vehicle (EV) development to achieve the “Dual Carbon” goals. However, the rising electricity demand from EVs may exacerbate carbon emissions from the power sector. This empirical study investigates the impact of China’s EV adoption on carbon emissions in the power sector using the panel data from 2017 to 2022. The instrumental variable regression results reveal that a 10% increase in EV sales increases emissions from power plants by 0.39%. Spatial econometric results further indicate significant emission spillovers and spatial connections among power plants. In addition, our scenario analysis reveals that the coordinated development of renewable energy and transport electrification contributes further to carbon reduction. Our findings highlight the importance of a cleaner energy mix in unlocking the full decarbonization potential of EVs.