- Published by:
- Department of Treasury and Finance
- Date:
- 1 Oct 2023
Rebecca Valenzuela1, John Inekwe2 and Hnin Inioluwa Tun Agbaje3.
1. Department of Treasury and Finance, Victoria
2. Monash University
3. University of Adelaide
Author contact details: veb@dtf.vic.gov.au.
Disclaimer: The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Victorian Department of Treasury and Finance (DTF).
Suggested Citation: Rebecca Valenzuela, John Inekwe and Hnin Inioluwa Tun Agbaje (2023), A region-based examination of electric vehicle take-up rates in Australia. Victoria’s Economic Bulletin, October 2023, vol 7, no 1. DTF.
Abstract
The study examines electric vehicle (EV) adoption rates across regions in Australia by utilising a nonlinear factor framework based on club convergence analysis. The results reveal the existence of four distinct regional groups (called convergence clubs) in terms of EV take up rates, and that this grouping has been fairly stable between 2013 and 2020.
The study also finds that regions incorporating city centres are more likely to cluster as top adopters than peripheral regions. About 50 per cent of the regions in the study appear in the higher-formed group, which signifies an improvement in environmental outcomes. The paper models determinants of EV adoption using region characteristics and finds that higher levels of green awareness, per capita income, and higher levels of education of residents within a region are significant positive influences. There is also some evidence pointing to the positive influence female populations exert on EV adoption and that higher within-region income inequality leads to lower EV adoption.
1. Introduction
Global indicators show that Australia has been notably slow in tackling transport emissions.
2. Literature review
EV adoption is an area of research that is very popular and is continuing to grow.
3. Methodology
The club convergence approach theory and associated statistical tests developed in Phillips and Sul (2007, 2009) has gained wide popularity as an application for assessing economic outcomes.
4. Data
We obtained information on electric vehicle registrations across 87 regions in Australia, between 2013 and 2020 from the Australian Bureau of Statistics (ABS).
5. Results from club convergence analysis
The analysis of convergence is established upon the premise that the industry structure of each Australian region is influenced by its local natural resources.
6. Modelling determinants of electric vehicle adoption
In this section, we examine the impact of green awareness on EV adoption rates, alongside a range of other region‑level variables such as income, education and employment rates.
7. Conclusion
The study examined the path of 87 regions of Australian towards adoption of electric vehicles using club convergence analysis.
8. References
References for this Victoria’s Economic Bulletin research article.
9. Appendix
Club convergence maps by states and territories.
Updated