Your research investigates a very specific aspect of the EV adoption ecosystem—how it affects brick-and-mortar retailers. Why did you choose this focus?
While a lot of attention has been paid to the consumer adoption of electric vehicles and the expansion of charging infrastructure by governments, car manufacturers, and electric vehicle (EV) network operators, the impact of these charging stations on local businesses has largely been overlooked. Our research addresses that gap, examining the extent to which the placement of EV charging stations nearby can benefit the sales of neighboring brick-and-mortar retailers. This information is vital for retailers that are considering investing in EV charging infrastructure, and for policymakers who might be looking to encourage expansion of EV charger networks via subsidies and industry partnerships.
Can you simplify your main findings for a general audience?
In simple terms, we found that adding a new Tesla Supercharger station leads to a 4% increase in visitor volumes for nearby retail brick-and-mortar businesses, particularly those that sell food, those located within a couple hundred meters of the Supercharger, and those that offer a service for which the time to complete a transaction is roughly equivalent to the duration of a charging session. We show that certain retail businesses can gain quite a bit by investing in EV charging infrastructure.
Are these findings specific to Tesla Superchargers, or can they be generalized to all EV charging stations?
Our study focused specifically on Tesla’s Supercharger network, but the insights are plausibly applicable to other types of fast-charging stations and electric vehicles. Consider that 1) Tesla is planning to open its Supercharger network to the broader electric vehicle market in 2024, and 2) alternative EV charging options are already available in North America that can charge as quickly as Tesla’s Superchargers, e.g., Electrify America, and those options are increasing. Of course, the exact effect size and conditions may vary, as Tesla owners may differ from other EV owners in important ways. Further research is obviously going to be needed to gauge how and whether our findings may generalize.
How do your findings inform policy regarding the expansion of EV charging infrastructure?
Our research suggests that policymakers could benefit from considering or even collaborating with retail chains when planning investments in EV charging infrastructure. By positioning stations near businesses that are likely to see increased visitor volumes, they not only make it convenient for EV users but also potentially increase revenue for local businesses. This could even result in a willingness on the part of retail chains to share the costs of construction and may help reduce the need for subsidies.
Your paper mentions ‘first-mover advantages.’ Could you explain what that means in this context?
‘First-mover advantage’ in our study refers to the benefits that the first charging station to be installed in an area provides relative to subsequent charging stations that are built in a local area. We found that the first EV charging stations that are constructed generally yield a larger benefit in neighboring retail foot traffic, compared to subsequent EV chargers. This result can be explained by the fact that EV charging patterns are likely subject to habit. People start charging at the earliest stations when they are built and continue to do so after new options become available because they lack a strong incentive to change. Thus, earlier constructions are more likely to become the ‘go-to’ choice for EV owners in the area.
