The Capacity of Battery-Electric and Plug-in Hybrid Electric Vehicles to Mitigate CO₂ Emissions: Macroeconomic Evidence from European Union Countries

Abstract

The decarbonisation of the transportation sector is crucial to reducing carbon dioxide (CO2) emissions. This study analyses evidence from European countries regarding achievement of the European Commission’s goal of achieving carbon neutrality by 2050. Using panel quantile econometric techniques, the impact of battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) on CO2 emissions in twenty-nine European Union (EU) countries from 2010–2020 was researched. The results show that BEVs and PHEVs are capable of mitigating CO2 emissions. However, each type of technology has a different degree of impact, with BEVs being more suited to minimizing CO2 emissions than PHEVs. We also found a statistically significant impact of economic development (quantile regression results) and energy consumption in increasing the emissions of CO2 in the EU countries in model estimates for both BEVs and PHEVs. It should be noted that BEVs face challenges, such as the scarcity of minerals for the production of batteries and the increased demand for mineral batteries, which have significant environmental impacts. Therefore, policymakers should adopt environmentally efficient transport that uses clean energy, such as EVs, to reduce the harmful effects on public health and the environment caused by the indiscriminate use of fossil fuels.

Keywords

• battery-electric vehicles
• plug-in hybrid electric vehicles
• carbon dioxide emissions
• European Union
• quantile regression