The Impact of Electrically Chargeable Vehicles on the EU Economy
A Literature Review and Assessment
This study reviews and assesses the recent literature on the impact of Electrically Chargeable Vehicles (“ECVs”) on the EU economy. The seven studies examined continue to demonstrate a very high level of uncertainty around the future market shares of ECVs. The majority of studies expect that a significant roll-out of ECVs would have positive impacts on employment, GDP and trade balance (and negative on government tax receipts).
These expectations rely on some critical assumptions which appear to us optimistic: (1) the EU retains its technological leadership; (2) ECVs are at least as labour intensive as conventional vehicles; and (3) the value-add of ECVs will be higher than the value-add of conventional technologies.