Battery electric vehicle adoption in the European Union: Analysis of the determining factors

This study examines the determinants of battery electric vehicle (BEV) adoption in European Union member states between 2014 and 2023. Using a panel Autoregressive Distributed Lag (ARDL) model, we estimate the short- and long-run effects of economic, policy, and structural factors on BEV uptake. The results show that economic conditions strongly influence adoption: in the long run, gross domestic product per capita exhibits the most considerable elasticity, underscoring the importance of income, whereas the price gap between BEVs and conventional internal combustion vehicles remains the primary barrier in both the short and long term. Fuel prices have asymmetric effects: higher diesel prices promote BEV adoption, whereas higher petrol prices encourage hybrid use rather than full electrification. Electricity prices are not statistically significant, and charging infrastructure influences adoption only in the short run, with its effect diminishing as networks expand. These findings underscore that overcoming economic obstacles—through price reductions, subsidies, and supportive policies—is essential to accelerate the transition to electric mobility. The study provides evidence-based insights for policymakers and industry stakeholders aiming to achieve the EU's electrification targets and foster widespread BEV adoption.