Can public charging infrastructure drive electric vehicle demand? Evidence from Denmark

Abstract

Electric vehicles (EVs) are a key tool for reducing emissions in the transportation sector, which remains the only EU sector with increasing emissions since 1990. One of the main external barriers to EV uptake is the availability of public charging infrastructure. This paper investigates how the rollout of public charging stations affects EV adoption across Danish municipalities. Using a staggered difference-in-difference design, I estimate the causal effect of introducing the first public charger in a municipality. The results show a statistically significant increase of 0.47 EVs per 1,000 capita, with a noticeable effect only emerging around two years after treatment—likely reflecting the high cost and long decision time involved in private personal vehicle purchases. I additionally explore heterogeneity and find that the effect is significantly larger for high-income and urban municipalities as well as for municipalities with a larger initial share of EV’s. I also find that EV’s to a large extent substitute internal combustion engine (ICE) vehicles. Finally, I also estimate a positive effect of a Danish policy from 2021 which invested in public charging infrastructure. These findings offer insights for more targeted and socially balanced policy interventions.