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For most US drivers, EVs offer emissions benefits and cost savings

Despite regional variability in climate, electricity sources, congestion, and the wide variation in individual driving patterns, electric vehicles generate less greenhouse gas emissions and do not cost more than comparable gas-powered vehicles for drivers and vehicle fleet owners in most parts of the United States, according to a new study by MIT researchers.

The team’s approach captures many key factors that contribute to regional and individual differences in the life-cycle emissions and ownership cost of electric vehicles, including meteorological data, the distance and duration of trips, and fuel prices.

To paint a fuller picture of emissions and costs than was previously available, the researchers sourced data from thousands of U.S. zip codes and drilled down to the level of individual drivers within those locations. Their study considers time-averaged fuel prices so as not to be overly influenced by fluctuations in prices at any one point in time. They finalized their analysis at the end of 2024 and early 2025.

Their results indicate that a person’s driving behaviors can matter as much as regional factors like the local electricity mix when it comes to the emissions savings of an electric vehicle, compared to a similar gas-powered vehicle. In most locations, a battery-electric vehicle reduces emissions between 40 and 60 percent, with larger impacts in urban areas. 

They also found that colder climates do not reduce overall emission benefits as much as some media reports assume.

The researchers utilized this detailed analysis to update a public tool they previously developed, carboncounter.com, which enables individuals to compare the life-cycle emissions and total ownership costs of nearly any car on the market. A new version of carboncounter.com is also being released today.

“There are a lot of statements being thrown around, like that electric vehicles don’t reduce emissions very much in cool climates, and we wanted to analyze these factors systematically and evaluate these statements against one another simultaneously. Rather than simply asking, ‘Are EVs better?’, this paper helps answer ‘better for whom, and under what conditions?’” says Marco Miotti PhD ’20, a senior researcher at ETH Zurich who completed this research while a graduate student in the Institute for Data, Systems, and Society (IDSS) at MIT. 

He is joined on the paper by senior author Jessika Trancik, a professor in IDSS. The research appears today in Environmental Research Letters.

A holistic approach

Many prior studies that compare emissions and costs of electric vehicles (EVs) to combustion-engine vehicles cover a few factors, like the amount of renewable energy in the grid and how gas prices impact affordability, Miotti says.

“To our knowledge, there have been few efforts so far that bring all these factors together. But if someone wants to buy a car and have a better understanding of the factors that affect emissions and costs, this holistic approach is important,” he adds.

The researchers focused on two types of EVs: battery-electric vehicles, which only operate on electricity, and plug-in hybrid electric vehicles, which also have a combustion engine that works in tandem with the battery to optimize fuel savings.

The team expanded and improved a set of previously developed vehicle cost and emissions models to incorporate a wider variety of factors and data types.

For instance, they refined an existing model that estimates energy use and gas mileage so it could capture more nuances of local climate variability. 

“But the real effort was not just in extending these different models, but in bringing together all these different data and making them work with the models in a consistent manner,” Miotti says.

The team sourced data on a wide variety of factors for each U.S. zip code, such as typical drive cycles, the amount of traffic, local gas and electricity prices, makeup of the regional electricity mix, meteorological profiles, and more. They used statistical approaches to amalgamate different types of data. 

For example, the team used a probabilistic matching technique to combine data on how often people drive, which was drawn from nationwide travel surveys, with more detailed GPS data that includes factors like drivers’ acceleration patterns and the distance they usually drive on each day of the week.

The researchers designed their analysis to focus on the spatial picture of emissions and costs, based on U.S. zip codes, while simultaneously considering the impact of the size and features of each specific vehicle model.

“At the end of the day, it’s the vehicle and fleet owners who make decisions about vehicle purchases. So, we wanted to make sure to consider their wide-ranging individual perspectives rather than simply performing a region-by-region comparison,” says Trancik.

Lower emissions, comparable costs

In the end, their modeling framework revealed that all factors they analyzed matter about equally in determining emissions-reduction potential of EVs compared to internal combustion vehicles. 

EVs reduce emissions the most in areas with a cleaner electricity mix, denser traffic, higher annual travel distances, and a mild climate, in decreasing order of importance. In each area, emission reductions increase for drivers who drive more often, drive larger vehicles, and are more frequently stuck in traffic. 

In a colder area like North Dakota, fuel economy of battery-electric vehicles might be reduced by as much as 50 percent on a particularly frigid night, but the effect on annual emission benefits is minimal. 

“We even did a sensitivity study to see if the range is reduced in very cold climates, and we found that, even in the most unfavorable conditions, EVs still reduce emissions by a substantial amount,” Miotti says.

On the cost side, the models show that, in most places across the U.S., EVs are competitive with comparable combustion-engine vehicles in terms of lifetime ownership cost, even without clean vehicle tax credits. And in areas where electricity is relatively affordable, battery-electric vehicles tend to cost less than their plug-in hybrid or combustion-engine counterparts.

In the future, the researchers want to expand this analysis to include a temporal dimension, so the framework also considers how changes in vehicle, fuel, and electricity prices affect emissions and costs over time. 

“While we found that the electricity mix is a big driver of the spatial variation in emissions savings of EVs, the electricity grid is decarbonizing everywhere. As that happens, emissions savings across space will become more homogenous for EVs, but the differences across one driver to another will remain,” Miotti says.

They could also use the framework to explore regions outside the United States or incorporate data on hybrid-electric vehicles that cannot be plugged in.

This work was funded, in part, by the MIT Martin Family Society of Fellows for Sustainability.

© Credit: iStock

A new MIT study finds that despite regional differences in climate, electricity sources, traffic, and driving patterns, electric vehicles produce fewer greenhouse gas emissions — and cost no more to own — than comparable gas-powered cars for most U.S drivers.

Driving American battery innovation forward

Advancements in battery innovation are transforming both mobility and energy systems alike, according to Kurt Kelty, vice president of battery, propulsion, and sustainability at General Motors (GM). At the MIT Energy Initiative (MITEI) Fall Colloquium, Kelty explored how GM is bringing next-generation battery technologies from lab to commercialization, driving American battery innovation forward. The colloquium is part of the ongoing MITEI Presents: Advancing the Energy Transition speaker series.

At GM, Kelty’s team is primarily focused on three things: first, improving affordability to get more electric vehicles (EVs) on the road. “How do you drive down the cost?” Kelty asked the audience. “It's the batteries. The batteries make up about 30 percent of the cost of the vehicle.” Second, his team strives to improve battery performance, including charging speed and energy density. Third, they are working on localizing the supply chain. “We've got to build up our resilience and our independence here in North America, so we're not relying on materials coming from China,” Kelty explained.

To aid their efforts, resources are being poured into the virtualization space, significantly cutting down on time dedicated to research and development. Now, Kelty’s team can do modeling up front using artificial intelligence, reducing what previously would have taken months to a couple of days.

“If you want to modify … the nickel content ever so slightly, we can very quickly model: ‘OK, how’s that going to affect the energy density? The safety? How’s that going to affect the charge capability?’” said Kelty. “We can look at that at the cell level, then the pack level, then the vehicle level.”

Kelty revealed that they have found a solution that addresses affordability, accessibility, and commercialization: lithium manganese-rich (LMR) batteries. Previously, the industry looked to reduce costs by lowering the amount of cobalt in batteries by adding greater amounts of nickel. These high-nickel batteries are in most cars on the road in the United States due to their high range. LMR batteries, though, take things a step further by reducing the amount of nickel and adding more manganese, which drives the cost of batteries down even further while maintaining range.

Lithium-iron-phosphate (LFP) batteries are the chemistry of choice in China, known for low cost, high cycle life, and high safety. With LMR batteries, the cost is comparable to LFP with a range that is closer to high-nickel. “That’s what’s really a breakthrough,” said Kelty.

LMR batteries are not new, but there have been challenges to adopting them, according to Kelty. “People knew about it, but they didn’t know how to commercialize it. They didn’t know how to make it work in an EV,” he explained. Now that GM has figured out commercialization, they will be the first to market these batteries in their EVs in 2028.

Kelty also expressed excitement over the use of vehicle-to-grid technologies in the future. Using a bidirectional charger with a two-way flow of energy, EVs could charge, but also send power from their batteries back to the electrical grid. This would allow customers to charge “their vehicles at night when the electricity prices are really low, and they can discharge it during the day when electricity rates are really high,” he said.

In addition to working in the transportation sector, GM is exploring ways to extend their battery expertise into applications in grid-scale energy storage. “It’s a big market right now, but it’s growing very quickly because of the data center growth,” said Kelty.

When looking to the future of battery manufacturing and EVs in the United States, Kelty remains optimistic: “we’ve got the technology here to make it happen. We’ve always had the innovation here. Now, we’re getting more and more of the manufacturing. We’re getting that all together. We’ve got just tremendous opportunity here that I’m hopeful we’re going to be able to take advantage of and really build a massive battery industry here.”

This speaker series highlights energy experts and leaders at the forefront of the scientific, technological, and policy solutions needed to transform our energy systems. Visit MITEI’s Events page for more information on this and additional events.

© Photo: Gretchen Ertl

Kurt Kelty (right), vice president of battery, propulsion, and sustainability at General Motors, joined MITEI's William Green at the 2025 MIT Energy Initiative Fall Colloquium. Kelty explained how GM is developing and commercializing next-generation battery technologies.

How artificial intelligence can help achieve a clean energy future

There is growing attention on the links between artificial intelligence and increased energy demands. But while the power-hungry data centers being built to support AI could potentially stress electricity grids, increase customer prices and service interruptions, and generally slow the transition to clean energy, the use of artificial intelligence can also help the energy transition.

For example, use of AI is reducing energy consumption and associated emissions in buildings, transportation, and industrial processes. In addition, AI is helping to optimize the design and siting of new wind and solar installations and energy storage facilities.

On electric power grids, using AI algorithms to control operations is helping to increase efficiency and reduce costs, integrate the growing share of renewables, and even predict when key equipment needs servicing to prevent failure and possible blackouts. AI can help grid planners schedule investments in generation, energy storage, and other infrastructure that will be needed in the future. AI is also helping researchers discover or design novel materials for nuclear reactors, batteries, and electrolyzers.

Researchers at MIT and elsewhere are actively investigating aspects of those and other opportunities for AI to support the clean energy transition. At its 2025 research conference, MITEI announced the Data Center Power Forum, a targeted research effort for MITEI member companies interested in addressing the challenges of data center power demand.

Controlling real-time operations

Customers generally rely on receiving a continuous supply of electricity, and grid operators get help from AI to make that happen — while optimizing the storage and distribution of energy from renewable sources at the same time.

But with more installation of solar and wind farms — both of which provide power in smaller amounts, and intermittently — and the growing threat of weather events and cyberattacks, ensuring reliability is getting more complicated. “That’s exactly where AI can come into the picture,” explains Anuradha Annaswamy, a senior research scientist in MIT’s Department of Mechanical Engineering and director of MIT’s Active-Adaptive Control Laboratory. “Essentially, you need to introduce a whole information infrastructure to supplement and complement the physical infrastructure.”

The electricity grid is a complex system that requires meticulous control on time scales ranging from decades all the way down to microseconds. The challenge can be traced to the basic laws of power physics: electricity supply must equal electricity demand at every instant, or generation can be interrupted. In past decades, grid operators generally assumed that generation was fixed — they could count on how much electricity each large power plant would produce — while demand varied over time in a fairly predictable way. As a result, operators could commission specific power plants to run as needed to meet demand the next day. If some outages occurred, specially designated units would start up as needed to make up the shortfall.

Today and in the future, that matching of supply and demand must still happen, even as the number of small, intermittent sources of generation grows and weather disturbances and other threats to the grid increase. AI algorithms provide a means of achieving the complex management of information needed to forecast within just a few hours which plants should run while also ensuring that the frequency, voltage, and other characteristics of the incoming power are as required for the grid to operate properly.

Moreover, AI can make possible new ways of increasing supply or decreasing demand at times when supplies on the grid run short. As Annaswamy points out, the battery in your electric vehicle (EV), as well as the one charged up by solar panels or wind turbines, can — when needed — serve as a source of extra power to be fed into the grid. And given real-time price signals, EV owners can choose to shift charging from a time when demand is peaking and prices are high to a time when demand and therefore prices are both lower. In addition, new smart thermostats can be set to allow the indoor temperature to drop or rise —  a range defined by the customer — when demand on the grid is peaking. And data centers themselves can be a source of demand flexibility: selected AI calculations could be delayed as needed to smooth out peaks in demand. Thus, AI can provide many opportunities to fine-tune both supply and demand as needed.

In addition, AI makes possible “predictive maintenance.” Any downtime is costly for the company and threatens shortages for the customers served. AI algorithms can collect key performance data during normal operation and, when readings veer off from that normal, the system can alert operators that something might be going wrong, giving them a chance to intervene. That capability prevents equipment failures, reduces the need for routine inspections, increases worker productivity, and extends the lifetime of key equipment.

Annaswamy stresses that “figuring out how to architect this new power grid with these AI components will require many different experts to come together.” She notes that electrical engineers, computer scientists, and energy economists “will have to rub shoulders with enlightened regulators and policymakers to make sure that this is not just an academic exercise, but will actually get implemented. All the different stakeholders have to learn from each other. And you need guarantees that nothing is going to fail. You can’t have blackouts.”

Using AI to help plan investments in infrastructure for the future

Grid companies constantly need to plan for expanding generation, transmission, storage, and more, and getting all the necessary infrastructure built and operating may take many years, in some cases more than a decade. So, they need to predict what infrastructure they’ll need to ensure reliability in the future. “It’s complicated because you have to forecast over a decade ahead of time what to build and where to build it,” says Deepjyoti Deka, a research scientist in MITEI.

One challenge with anticipating what will be needed is predicting how the future system will operate. “That’s becoming increasingly difficult,” says Deka, because more renewables are coming online and displacing traditional generators. In the past, operators could rely on “spinning reserves,” that is, generating capacity that’s not currently in use but could come online in a matter of minutes to meet any shortfall on the system. The presence of so many intermittent generators — wind and solar — means there’s now less stability and inertia built into the grid. Adding to the complication is that those intermittent generators can be built by various vendors, and grid planners may not have access to the physics-based equations that govern the operation of each piece of equipment at sufficiently fine time scales. “So, you probably don’t know exactly how it’s going to run,” says Deka.

And then there’s the weather. Determining the reliability of a proposed future energy system requires knowing what it’ll be up against in terms of weather. The future grid has to be reliable not only in everyday weather, but also during low-probability but high-risk events such as hurricanes, floods, and wildfires, all of which are becoming more and more frequent, notes Deka. AI can help by predicting such events and even tracking changes in weather patterns due to climate change.

Deka points out another, less-obvious benefit of the speed of AI analysis. Any infrastructure development plan must be reviewed and approved, often by several regulatory and other bodies. Traditionally, an applicant would develop a plan, analyze its impacts, and submit the plan to one set of reviewers. After making any requested changes and repeating the analysis, the applicant would resubmit a revised version to the reviewers to see if the new version was acceptable. AI tools can speed up the required analysis so the process moves along more quickly. Planners can even reduce the number of times a proposal is rejected by using large language models to search regulatory publications and summarize what’s important for a proposed infrastructure installation.

Harnessing AI to discover and exploit advanced materials needed for the energy transition

“Use of AI for materials development is booming right now,” says Ju Li, MIT’s Carl Richard Soderberg Professor of Power Engineering. He notes two main directions.

First, AI makes possible faster physics-based simulations at the atomic scale. The result is a better atomic-level understanding of how composition, processing, structure, and chemical reactivity relate to the performance of materials. That understanding provides design rules to help guide the development and discovery of novel materials for energy generation, storage, and conversion needed for a sustainable future energy system.

And second, AI can help guide experiments in real time as they take place in the lab. Li explains: “AI assists us in choosing the best experiment to do based on our previous experiments and — based on literature searches — makes hypotheses and suggests new experiments.”

He describes what happens in his own lab. Human scientists interact with a large language model, which then makes suggestions about what specific experiments to do next. The human researcher accepts or modifies the suggestion, and a robotic arm responds by setting up and performing the next step in the experimental sequence, synthesizing the material, testing the performance, and taking images of samples when appropriate. Based on a mix of literature knowledge, human intuition, and previous experimental results, AI thus coordinates active learning that balances the goals of reducing uncertainty with improving performance. And, as Li points out, “AI has read many more books and papers than any human can, and is thus naturally more interdisciplinary.”

The outcome, says Li, is both better design of experiments and speeding up the “work flow.” Traditionally, the process of developing new materials has required synthesizing the precursors, making the material, testing its performance and characterizing the structure, making adjustments, and repeating the same series of steps. AI guidance speeds up that process, “helping us to design critical, cheap experiments that can give us the maximum amount of information feedback,” says Li.

“Having this capability certainly will accelerate material discovery, and this may be the thing that can really help us in the clean energy transition,” he concludes. “AI [has the potential to] lubricate the material-discovery and optimization process, perhaps shortening it from decades, as in the past, to just a few years.” 

MITEI’s contributions

At MIT, researchers are working on various aspects of the opportunities described above. In projects supported by MITEI, teams are using AI to better model and predict disruptions in plasma flows inside fusion reactors — a necessity in achieving practical fusion power generation. Other MITEI-supported teams are using AI-powered tools to interpret regulations, climate data, and infrastructure maps in order to achieve faster, more adaptive electric grid planning. AI-guided development of advanced materials continues, with one MITEI project using AI to optimize solar cells and thermoelectric materials.

Other MITEI researchers are developing robots that can learn maintenance tasks based on human feedback, including physical intervention and verbal instructions. The goal is to reduce costs, improve safety, and accelerate the deployment of the renewable energy infrastructure. And MITEI-funded work continues on ways to reduce the energy demand of data centers, from designing more efficient computer chips and computing algorithms to rethinking the architectural design of the buildings, for example, to increase airflow so as to reduce the need for air conditioning.

In addition to providing leadership and funding for many research projects, MITEI acts as a convenor, bringing together interested parties to consider common problems and potential solutions. In May 2025, MITEI’s annual spring symposium — titled “AI and energy: Peril and promise” — brought together AI and energy experts from across academia, industry, government, and nonprofit organizations to explore AI as both a problem and a potential solution for the clean energy transition. At the close of the symposium, William H. Green, director of MITEI and Hoyt C. Hottel Professor in the MIT Department of Chemical Engineering, noted, “The challenge of meeting data center energy demand and of unlocking the potential benefits of AI to the energy transition is now a research priority for MITEI.”

© Image: Igor Borisenko/iStock

Researchers at MIT and elsewhere are investigating how AI can be harnessed to support the clean energy transition.

Burning things to make things

Around 80 percent of global energy production today comes from the combustion of fossil fuels. Combustion, or the process of converting stored chemical energy into thermal energy through burning, is vital for a variety of common activities including electricity generation, transportation, and domestic uses like heating and cooking — but it also yields a host of environmental consequences, contributing to air pollution and greenhouse gas emissions.

Sili Deng, the Doherty Chair in Ocean Utilization and associate professor of mechanical engineering at MIT, is leading research to drive the transition from the heavy dependence on fossil fuels to renewable energy with storage.

“I was first introduced to flame synthesis in my junior year in college,” Deng says. “I realized you can actually burn things to make things, [and] that was really fascinating.”

Deng says she ultimately picked combustion as a focus of her work because she likes the intellectual challenge the concept offers. “In combustion you have chemistry, and you have fluid mechanics. Each subject is very rich in science. This also has very strong engineering implications and applications.”

Deng’s research group targets three areas: building up fundamental knowledge on combustion processes and emissions; developing alternative fuels and metal combustion to replace fossil fuels; and synthesizing flame-based materials for catalysis and energy storage, which can bring down the cost of manufacturing battery materials.

One focus of the team has been on low-cost, low-emission manufacturing of cathode materials for lithium-ion batteries. Lithium-ion batteries play an increasingly critical role in transportation electrification (e.g., batteries for electric vehicles) and grid energy storage for electricity that is generated from renewable energy sources like wind and solar. Deng’s team has developed a technology they call flame-assisted spray pyrolysis, or FASP, which can help reduce the high manufacturing costs associated with cathode materials.

FASP is based on flame synthesis, a technology that dates back nearly 3,000 years. In ancient China, this was the primary way black ink materials were made. “[People burned] vegetables or woods, such that afterwards they can collect the solidified smoke,” Deng explains. “For our battery applications, we can try to fit in the same formula, but of course with new tweaks.”

The team is also interested in developing alternative fuels, including looking at the use of metals like aluminum to power rockets. “We’re interested in utilizing aluminum as a fuel for civil applications,” Deng says, because aluminum is abundant in the earth, cheap, and it’s available globally. “What we are trying to do is to understand [aluminum combustion] and be able to tailor its ignition and propagation properties.”

Among other accolades, Deng is a 2025 recipient of the Hiroshi Tsuji Early Career Researcher Award from the Combustion Institute, an award that recognizes excellence in fundamental or applied combustion science research.

© Photo: John Freidah/MIT MechE

Associate Professor Sili Deng

Transforming boating, with solar power

The MIT Sailing Pavilion hosted an altogether different marine vessel recently: a prototype of a solar electric boat developed by James Worden ’89, the founder of the MIT Solar Electric Vehicle Team (SEVT). Worden visited the pavilion on a sizzling, sunny day in late July to offer students from the SEVT, the MIT Edgerton Center, MIT Sea Grant, and the broader community an inside look at the Anita, named for his late wife.

Worden’s fascination with solar power began at age 10, when he picked up a solar chip at a “hippy-like” conference in his hometown of Arlington, Massachusetts. “My eyes just lit up,” he says. He built his first solar electric vehicle in high school, fashioned out of cardboard and wood (taking first place at the 1984 Massachusetts Science Fair), and continued his journey at MIT, founding SEVT in 1986. It was through SEVT that he met his wife and lifelong business partner, Anita Rajan Worden ’90. Together, they founded two companies in the solar electric and hybrid vehicles space, and in 2022 launched a solar electric boat company.

On the Charles River, Worden took visitors for short rides on Anita, including a group of current SEVT students who peppered him with questions. The 20-foot pontoon boat, just 12 feet wide and 7 feet tall, is made of carbon fiber composites, single crystalline solar photovoltaic cells, and lithium iron phosphate battery cells. Ultimately, Worden envisions the prototype could have applications as mini-ferry boats and water taxis.

With warmth and humor, he drew parallels between the boat’s components and mechanics and those of the solar cars the students are building. “It’s fun! If you think about all the stuff you guys are doing, it’s all the same stuff,” he told them, “optimizing all the different systems and making them work.” He also explained the design considerations unique to boating applications, like refining the hull shape for efficiency and maneuverability in variable water and wind conditions, and the critical importance of protecting wiring and controls from open water and condensate.

“Seeing Anita in all its glory was super cool,” says Nicole Lin, vice captain of SEVT. “When I first saw it, I could immediately map the different parts of the solar car to its marine counterparts, which was astonishing to see how far I’ve come as an engineer with SEVT. James also explained the boat using solar car terms, as he drew on his experience with solar cars for his solar boats. It blew my mind to see the engineering we learned with SEVT in action.”

Over the years, the Wordens have been avid supporters of SEVT and the Edgerton Center, so the visit was, in part, a way to pay it forward to MIT. “There’s a lot of connections,” he says. He’s still awed by the fact that Harold “Doc” Edgerton, upon learning about his interest in building solar cars, carved out a lab space for him to use in Building 20 — as a first-year student. And a few years ago, as Worden became interested in marine vessels, he tapped Sea Grant Education Administrator Drew Bennett for a 90-minute whiteboard lecture, “MIT fire-hose style,” on hydrodynamics. “It was awesome!” he says.

© Photo: Sarah Foote

A group of visitors sets off from the dock for a cruise around the Charles River. The Anita weighs about 2,800 pounds and can accommodate six passengers at a time.

Jessika Trancik named director of the Sociotechnical Systems Research Center

Jessika Trancik, a professor in MIT’s Institute for Data, Systems, and Society, has been named the new director of the Sociotechnical Systems Research Center (SSRC), effective July 1. The SSRC convenes and supports researchers focused on problems and solutions at the intersection of technology and its societal impacts.

Trancik conducts research on technology innovation and energy systems. At the Trancik Lab, she and her team develop methods drawing on engineering knowledge, data science, and policy analysis. Their work examines the pace and drivers of technological change, helping identify where innovation is occurring most rapidly, how emerging technologies stack up against existing systems, and which performance thresholds matter most for real-world impact. Her models have been used to inform government innovation policy and have been applied across a wide range of industries.

“Professor Trancik’s deep expertise in the societal implications of technology, and her commitment to developing impactful solutions across industries, make her an excellent fit to lead SSRC,” says Maria C. Yang, interim dean of engineering and William E. Leonhard (1940) Professor of Mechanical Engineering.

Much of Trancik’s research focuses on the domain of energy systems, and establishing methods for energy technology evaluation, including of their costs, performance, and environmental impacts. She covers a wide range of energy services — including electricity, transportation, heating, and industrial processes. Her research has applications in solar and wind energy, energy storage, low-carbon fuels, electric vehicles, and nuclear fission. Trancik is also known for her research on extreme events in renewable energy availability.

A prolific researcher, Trancik has helped measure progress and inform the development of solar photovoltaics, batteries, electric vehicle charging infrastructure, and other low-carbon technologies — and anticipate future trends. One of her widely cited contributions includes quantifying learning rates and identifying where targeted investments can most effectively accelerate innovation. These tools have been used by U.S. federal agencies, international organizations, and the private sector to shape energy R&D portfolios, climate policy, and infrastructure planning.

Trancik is committed to engaging and informing the public on energy consumption. She and her team developed the app carboncounter.com, which helps users choose cars with low costs and low environmental impacts.

As an educator, Trancik teaches courses for students across MIT’s five schools and the MIT Schwarzman College of Computing.

“The question guiding my teaching and research is how do we solve big societal challenges with technology, and how can we be more deliberate in developing and supporting technologies to get us there?” Trancik said in an article about course IDS.521/IDS.065 (Energy Systems for Climate Change Mitigation).

Trancik received her undergraduate degree in materials science and engineering from Cornell University. As a Rhodes Scholar, she completed her PhD in materials science at the University of Oxford. She subsequently worked for the United Nations in Geneva, Switzerland, and the Earth Institute at Columbia University. After serving as an Omidyar Research Fellow at the Santa Fe Institute, she joined MIT in 2010 as a faculty member.

Trancik succeeds Fotini Christia, the Ford International Professor of Social Sciences in the Department of Political Science and director of IDSS, who previously served as director of SSRC.

Professor Jessika Trancik conducts research on technology innovation and energy systems.

Study shows making hydrogen with soda cans and seawater is scalable and sustainable

Hydrogen has the potential to be a climate-friendly fuel since it doesn’t release carbon dioxide when used as an energy source. Currently, however, most methods for producing hydrogen involve fossil fuels, making hydrogen less of a “green” fuel over its entire life cycle.

A new process developed by MIT engineers could significantly shrink the carbon footprint associated with making hydrogen.

Last year, the team reported that they could produce hydrogen gas by combining seawater, recycled soda cans, and caffeine. The question then was whether the benchtop process could be applied at an industrial scale, and at what environmental cost.

Now, the researchers have carried out a “cradle-to-grave” life cycle assessment, taking into account every step in the process at an industrial scale. For instance, the team calculated the carbon emissions associated with acquiring and processing aluminum, reacting it with seawater to produce hydrogen, and transporting the fuel to gas stations, where drivers could tap into hydrogen tanks to power engines or fuel cell cars. They found that, from end to end, the new process could generate a fraction of the carbon emissions that is associated with conventional hydrogen production.

In a study appearing today in Cell Reports Sustainability, the team reports that for every kilogram of hydrogen produced, the process would generate 1.45 kilograms of carbon dioxide over its entire life cycle. In comparison, fossil-fuel-based processes emit 11 kilograms of carbon dioxide per kilogram of hydrogen generated.

The low-carbon footprint is on par with other proposed “green hydrogen” technologies, such as those powered by solar and wind energy.

“We’re in the ballpark of green hydrogen,” says lead author Aly Kombargi PhD ’25, who graduated this spring from MIT with a doctorate in mechanical engineering. “This work highlights aluminum’s potential as a clean energy source and offers a scalable pathway for low-emission hydrogen deployment in transportation and remote energy systems.”

The study’s MIT co-authors are Brooke Bao, Enoch Ellis, and professor of mechanical engineering Douglas Hart.

Gas bubble

Dropping an aluminum can in water won’t normally cause much of a chemical reaction. That’s because when aluminum is exposed to oxygen, it instantly forms a shield-like layer. Without this layer, aluminum exists in its pure form and can readily react when mixed with water. The reaction that occurs involves aluminum atoms that efficiently break up molecules of water, producing aluminum oxide and pure hydrogen. And it doesn’t take much of the metal to bubble up a significant amount of the gas.

“One of the main benefits of using aluminum is the energy density per unit volume,” Kombargi says. “With a very small amount of aluminum fuel, you can conceivably supply much of the power for a hydrogen-fueled vehicle.”

Last year, he and Hart developed a recipe for aluminum-based hydrogen production. They found they could puncture aluminum’s natural shield by treating it with a small amount of gallium-indium, which is a rare-metal alloy that effectively scrubs aluminum into its pure form. The researchers then mixed pellets of pure aluminum with seawater and observed that the reaction produced pure hydrogen. What’s more, the salt in the water helped to precipitate gallium-indium, which the team could subsequently recover and reuse to generate more hydrogen, in a cost-saving, sustainable cycle.

“We were explaining the science of this process in conferences, and the questions we would get were, ‘How much does this cost?’ and, ‘What’s its carbon footprint?’” Kombargi says. “So we wanted to look at the process in a comprehensive way.”

A sustainable cycle

For their new study, Kombargi and his colleagues carried out a life cycle assessment to estimate the environmental impact of aluminum-based hydrogen production, at every step of the process, from sourcing the aluminum to transporting the hydrogen after production. They set out to calculate the amount of carbon associated with generating 1 kilogram of hydrogen — an amount that they chose as a practical, consumer-level illustration.

“With a hydrogen fuel cell car using 1 kilogram of hydrogen, you can go between 60 to 100 kilometers, depending on the efficiency of the fuel cell,” Kombargi notes.

They performed the analysis using Earthster — an online life cycle assessment tool that draws data from a large repository of products and processes and their associated carbon emissions. The team considered a number of scenarios to produce hydrogen using aluminum, from starting with “primary” aluminum mined from the Earth, versus “secondary” aluminum that is recycled from soda cans and other products, and using various methods to transport the aluminum and hydrogen.

After running life cycle assessments for about a dozen scenarios, the team identified one scenario with the lowest carbon footprint. This scenario centers on recycled aluminum — a source that saves a significant amount of emissions compared with mining aluminum — and seawater — a natural resource that also saves money by recovering gallium-indium. They found that this scenario, from start to finish, would generate about 1.45 kilograms of carbon dioxide for every kilogram of hydrogen produced. The cost of the fuel produced, they calculated, would be about $9 per kilogram, which is comparable to the price of hydrogen that would be generated with other green technologies such as wind and solar energy.

The researchers envision that if the low-carbon process were ramped up to a commercial scale, it would look something like this: The production chain would start with scrap aluminum sourced from a recycling center. The aluminum would be shredded into pellets and treated with gallium-indium. Then, drivers could transport the pretreated pellets as aluminum “fuel,” rather than directly transporting hydrogen, which is potentially volatile. The pellets would be transported to a fuel station that ideally would be situated near a source of seawater, which could then be mixed with the aluminum, on demand, to produce hydrogen. A consumer could then directly pump the gas into a car with either an internal combustion engine or a fuel cell.

The entire process does produce an aluminum-based byproduct, boehmite, which is a mineral that is commonly used in fabricating semiconductors, electronic elements, and a number of industrial products. Kombargi says that if this byproduct were recovered after hydrogen production, it could be sold to manufacturers, further bringing down the cost of the process as a whole.

“There are a lot of things to consider,” Kombargi says. “But the process works, which is the most exciting part. And we show that it can be environmentally sustainable.”

The group is continuing to develop the process. They recently designed a small reactor, about the size of a water bottle, that takes in aluminum pellets and seawater to generate hydrogen, enough to power an electric bike for several hours. They previously demonstrated that the process can produce enough hydrogen to fuel a small car. The team is also exploring underwater applications, and are designing a hydrogen reactor that would take in surrounding seawater to power a small boat or underwater vehicle.

This research was supported, in part, by the MIT Portugal Program.

© Credit: Courtesy of the researchers

MIT engineers have developed a new aluminum-based process to produce hydrogen gas, that they are testing on a variety of applications, including an aluminum-powered electric vehicle, pictured here.

Rooftop panels, EV chargers, and smart thermostats could chip in to boost power grid resilience

There’s a lot of untapped potential in our homes and vehicles that could be harnessed to reinforce local power grids and make them more resilient to unforeseen outages, a new study shows.

In response to a cyber attack or natural disaster, a backup network of decentralized devices — such as residential solar panels, batteries, electric vehicles, heat pumps, and water heaters — could restore electricity or relieve stress on the grid, MIT engineers say.

Such devices are “grid-edge” resources found close to the consumer rather than near central power plants, substations, or transmission lines. Grid-edge devices can independently generate, store, or tune their consumption of power. In their study, the research team shows how such devices could one day be called upon to either pump power into the grid, or rebalance it by dialing down or delaying their power use.

In a paper appearing this week in the Proceedings of the National Academy of Sciences, the engineers present a blueprint for how grid-edge devices could reinforce the power grid through a “local electricity market.” Owners of grid-edge devices could subscribe to a regional market and essentially loan out their device to be part of a microgrid or a local network of on-call energy resources.

In the event that the main power grid is compromised, an algorithm developed by the researchers would kick in for each local electricity market, to quickly determine which devices in the network are trustworthy. The algorithm would then identify the combination of trustworthy devices that would most effectively mitigate the power failure, by either pumping power into the grid or reducing the power they draw from it, by an amount that the algorithm would calculate and communicate to the relevant subscribers. The subscribers could then be compensated through the market, depending on their participation.

The team illustrated this new framework through a number of grid attack scenarios, in which they considered failures at different levels of a power grid, from various sources such as a cyber attack or a natural disaster. Applying their algorithm, they showed that various networks of grid-edge devices were able to dissolve the various attacks.

The results demonstrate that grid-edge devices such as rooftop solar panels, EV chargers, batteries, and smart thermostats (for HVAC devices or heat pumps) could be tapped to stabilize the power grid in the event of an attack.

“All these small devices can do their little bit in terms of adjusting their consumption,” says study co-author Anu Annaswamy, a research scientist in MIT’s Department of Mechanical Engineering. “If we can harness our smart dishwashers, rooftop panels, and EVs, and put our combined shoulders to the wheel, we can really have a resilient grid.”

The study’s MIT co-authors include lead author Vineet Nair and John Williams, along with collaborators from multiple institutions including the Indian Institute of Technology, the National Renewable Energy Laboratory, and elsewhere.

Power boost

The team’s study is an extension of their broader work in adaptive control theory and designing systems to automatically adapt to changing conditions. Annaswamy, who leads the Active-Adaptive Control Laboratory at MIT, explores ways to boost the reliability of renewable energy sources such as solar power.

“These renewables come with a strong temporal signature, in that we know for sure the sun will set every day, so the solar power will go away,” Annaswamy says. “How do you make up for the shortfall?”

The researchers found the answer could lie in the many grid-edge devices that consumers are increasingly installing in their own homes.

“There are lots of distributed energy resources that are coming up now, closer to the customer rather than near large power plants, and it’s mainly because of individual efforts to decarbonize,” Nair says. “So you have all this capability at the grid edge. Surely we should be able to put them to good use.”

While considering ways to deal with drops in energy from the normal operation of renewable sources, the team also began to look into other causes of power dips, such as from cyber attacks. They wondered, in these malicious instances, whether and how the same grid-edge devices could step in to stabilize the grid following an unforeseen, targeted attack.

Attack mode

In their new work, Annaswamy, Nair, and their colleagues developed a framework for incorporating grid-edge devices, and in particular, internet-of-things (IoT) devices, in a way that would support the larger grid in the event of an attack or disruption. IoT devices are physical objects that contain sensors and software that connect to the internet.

For their new framework, named EUREICA (Efficient, Ultra-REsilient, IoT-Coordinated Assets), the researchers start with the assumption that one day, most grid-edge devices will also be IoT devices, enabling rooftop panels, EV chargers, and smart thermostats to wirelessly connect to a larger network of similarly independent and distributed devices. 

The team envisions that for a given region, such as a community of 1,000 homes, there exists a certain number of IoT devices that could potentially be enlisted in the region’s local network, or microgrid. Such a network would be managed by an operator, who would be able to communicate with operators of other nearby microgrids.

If the main power grid is compromised or attacked, operators would run the researchers’ decision-making algorithm to determine trustworthy devices within the network that can pitch in to help mitigate the attack.

The team tested the algorithm on a number of scenarios, such as a cyber attack in which all smart thermostats made by a certain manufacturer are hacked to raise their setpoints simultaneously to a degree that dramatically alters a region’s energy load and destabilizes the grid. The researchers also considered attacks and weather events that would shut off the transmission of energy at various levels and nodes throughout a power grid.

“In our attacks we consider between 5 and 40 percent of the power being lost. We assume some nodes are attacked, and some are still available and have some IoT resources, whether a battery with energy available or an EV or HVAC device that’s controllable,” Nair explains. “So, our algorithm decides which of those houses can step in to either provide extra power generation to inject into the grid or reduce their demand to meet the shortfall.”

In every scenario that they tested, the team found that the algorithm was able to successfully restabilize the grid and mitigate the attack or power failure. They acknowledge that to put in place such a network of grid-edge devices will require buy-in from customers, policymakers, and local officials, as well as innovations such as advanced power inverters that enable EVs to inject power back into the grid.

“This is just the first of many steps that have to happen in quick succession for this idea of local electricity markets to be implemented and expanded upon,” Annaswamy says. “But we believe it’s a good start.”

This work was supported, in part, by the U.S. Department of Energy and the MIT Energy Initiative.

© Credit: Courtesy of the researchers

An example of the different types of IoT devices, physical objects that contain sensors and software that connect to the internet, that are coordinated to increase power grid resilience.

Tackling the energy revolution, one sector at a time

As a major contributor to global carbon dioxide (CO2) emissions, the transportation sector has immense potential to advance decarbonization. However, a zero-emissions global supply chain requires re-imagining reliance on a heavy-duty trucking industry that emits 810,000 tons of CO2, or 6 percent of the United States’ greenhouse gas emissions, and consumes 29 billion gallons of diesel annually in the U.S. alone.

A new study by MIT researchers, presented at the recent American Society of Mechanical Engineers 2024 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, quantifies the impact of a zero-emission truck’s design range on its energy storage requirements and operational revenue. The multivariable model outlined in the paper allows fleet owners and operators to better understand the design choices that impact the economic feasibility of battery-electric and hydrogen fuel cell heavy-duty trucks for commercial application, equipping stakeholders to make informed fleet transition decisions.

“The whole issue [of decarbonizing trucking] is like a very big, messy pie. One of the things we can do, from an academic standpoint, is quantify some of those pieces of pie with modeling, based on information and experience we’ve learned from industry stakeholders,” says ZhiYi Liang, PhD student on the renewable hydrogen team at the MIT K. Lisa Yang Global Engineering and Research Center (GEAR) and lead author of the study. Co-authored by Bryony DuPont, visiting scholar at GEAR, and Amos Winter, the Germeshausen Professor in the MIT Department of Mechanical Engineering, the paper elucidates operational and socioeconomic factors that need to be considered in efforts to decarbonize heavy-duty vehicles (HDVs).

Operational and infrastructure challenges

The team’s model shows that a technical challenge lies in the amount of energy that needs to be stored on the truck to meet the range and towing performance needs of commercial trucking applications. Due to the high energy density and low cost of diesel, existing diesel drivetrains remain more competitive than alternative lithium battery-electric vehicle (Li-BEV) and hydrogen fuel-cell-electric vehicle (H2 FCEV) drivetrains. Although Li-BEV drivetrains have the highest energy efficiency of all three, they are limited to short-to-medium range routes (under 500 miles) with low freight capacity, due to the weight and volume of the onboard energy storage needed. In addition, the authors note that existing electric grid infrastructure will need significant upgrades to support large-scale deployment of Li-BEV HDVs.

While the hydrogen-powered drivetrain has a significant weight advantage that enables higher cargo capacity and routes over 750 miles, the current state of hydrogen fuel networks limits economic viability, especially once operational cost and projected revenue are taken into account. Deployment will most likely require government intervention in the form of incentives and subsidies to reduce the price of hydrogen by more than half, as well as continued investment by corporations to ensure a stable supply. Also, as H2-FCEVs are still a relatively new technology, the ongoing design of conformal onboard hydrogen storage systems — one of which is the subject of Liang’s PhD — is crucial to successful adoption into the HDV market.

The current efficiency of diesel systems is a result of technological developments and manufacturing processes established over many decades, a precedent that suggests similar strides can be made with alternative drivetrains. However, interactions with fleet owners, automotive manufacturers, and refueling network providers reveal another major hurdle in the way that each “slice of the pie” is interrelated — issues must be addressed simultaneously because of how they affect each other, from renewable fuel infrastructure to technological readiness and capital cost of new fleets, among other considerations. And first steps into an uncertain future, where no one sector is fully in control of potential outcomes, is inherently risky. 

“Besides infrastructure limitations, we only have prototypes [of alternative HDVs] for fleet operator use, so the cost of procuring them is high, which means there isn’t demand for automakers to build manufacturing lines up to a scale that would make them economical to produce,” says Liang, describing just one step of a vicious cycle that is difficult to disrupt, especially for industry stakeholders trying to be competitive in a free market. 

Quantifying a path to feasibility

“Folks in the industry know that some kind of energy transition needs to happen, but they may not necessarily know for certain what the most viable path forward is,” says Liang. Although there is no singular avenue to zero emissions, the new model provides a way to further quantify and assess at least one slice of pie to aid decision-making.

Other MIT-led efforts aimed at helping industry stakeholders navigate decarbonization include an interactive mapping tool developed by Danika MacDonell, Impact Fellow at the MIT Climate and Sustainability Consortium (MCSC); alongside Florian Allroggen, executive director of MITs Zero Impact Aviation Alliance; and undergraduate researchers Micah Borrero, Helena De Figueiredo Valente, and Brooke Bao. The MCSC’s Geospatial Decision Support Tool supports strategic decision-making for fleet operators by allowing them to visualize regional freight flow densities, costs, emissions, planned and available infrastructure, and relevant regulations and incentives by region.

While current limitations reveal the need for joint problem-solving across sectors, the authors believe that stakeholders are motivated and ready to tackle climate problems together. Once-competing businesses already appear to be embracing a culture shift toward collaboration, with the recent agreement between General Motors and Hyundai to explore “future collaboration across key strategic areas,” including clean energy. 

Liang believes that transitioning the transportation sector to zero emissions is just one part of an “energy revolution” that will require all sectors to work together, because “everything is connected. In order for the whole thing to make sense, we need to consider ourselves part of that pie, and the entire system needs to change,” says Liang. “You can’t make a revolution succeed by yourself.” 

The authors acknowledge the MIT Climate and Sustainability Consortium for connecting them with industry members in the HDV ecosystem; and the MIT K. Lisa Yang Global Engineering and Research Center and MIT Morningside Academy for Design for financial support.

© Photo: Bob Adams/Flickr

A new study by MIT researchers quantifies the impact of a zero-emission truck’s design range on its energy storage requirements and operational revenue.

MIT students combat climate anxiety through extracurricular teams

Climate anxiety affects nearly half of young people aged 16-25. Students like second-year Rachel Mohammed find hope and inspiration through her involvement in innovative climate solutions, working alongside peers who share her determination. “I’ve met so many people at MIT who are dedicated to finding climate solutions in ways that I had never imagined, dreamed of, or heard of. That is what keeps me going, and I’m doing my part,” she says.

Hydrogen-fueled engines

Hydrogen offers the potential for zero or near-zero emissions, with the ability to reduce greenhouse gases and pollution by 29 percent. However, the hydrogen industry faces many challenges related to storage solutions and costs.

Mohammed leads the hydrogen team on MIT’s Electric Vehicle Team (EVT), which is dedicated to harnessing hydrogen power to build a cleaner, more sustainable future. EVT is one of several student-led build teams at the Edgerton Center focused on innovative climate solutions. Since its founding in 1992, the Edgerton Center has been a hub for MIT students to bring their ideas to life.

Hydrogen is mostly used in large vehicles like trucks and planes because it requires a lot of storage space. EVT is building their second iteration of a motorcycle based on what Mohammed calls a “goofy hypothesis” that you can use hydrogen to power a small vehicle. The team employs a hydrogen fuel cell system, which generates electricity by combining hydrogen with oxygen. However, the technology faces challenges, particularly in storage, which EVT is tackling with innovative designs for smaller vehicles.

Presenting at the 2024 World Hydrogen Summit reaffirmed Mohammed’s confidence in this project. “I often encounter skepticism, with people saying it’s not practical. Seeing others actively working on similar initiatives made me realize that we can do it too,” Mohammed says.

The team’s first successful track test last October allowed them to evaluate the real-world performance of their hydrogen-powered motorcycle, marking a crucial step in proving the feasibility and efficiency of their design.

MIT’s Sustainable Engine Team (SET), founded by junior Charles Yong, uses the combustion method to generate energy with hydrogen. This is a promising technology route for high-power-density applications, like aviation, but Yong believes it hasn’t received enough attention. Yong explains, “In the hydrogen power industry, startups choose fuel cell routes instead of combustion because gas turbine industry giants are 50 years ahead. However, these giants are moving very slowly toward hydrogen due to its not-yet-fully-developed infrastructure. Working under the Edgerton Center allows us to take risks and explore advanced tech directions to demonstrate that hydrogen combustion can be readily available.”

Both EVT and SET are publishing their research and providing detailed instructions for anyone interested in replicating their results.

Running on sunshine

The Solar Electric Vehicle Team powers a car built from scratch with 100 percent solar energy.

The team’s single-occupancy car Nimbus won the American Solar Challenge two years in a row. This year, the team pushed boundaries further with Gemini, a multiple-occupancy vehicle that challenges conventional perceptions of solar-powered cars.

Senior Andre Greene explains, “the challenge comes from minimizing how much energy you waste because you work with such little energy. It’s like the equivalent power of a toaster.”

Gemini looks more like a regular car and less like a “spaceship,” as NBC’s 1st Look affectionately called Nimbus. “It more resembles what a fully solar-powered car could look like versus the single-seaters. You don’t see a lot of single-seater cars on the market, so it’s opening people’s minds,” says rising junior Tessa Uviedo, team captain.

All-electric since 2013

The MIT Motorsports team switched to an all-electric powertrain in 2013. Captain Eric Zhou takes inspiration from China, the world’s largest market for electric vehicles. “In China, there is a large government push towards electric, but there are also five or six big companies almost as large as Tesla size, building out these electric vehicles. The competition drives the majority of vehicles in China to become electric.”

The team is also switching to four-wheel drive and regenerative braking next year, which reduces the amount of energy needed to run. “This is more efficient and better for power consumption because the torque from the motors is applied straight to the tires. It’s more efficient than having a rear motor that must transfer torque to both rear tires. Also, you’re taking advantage of all four tires in terms of producing grip, while you can only rely on the back tires in a rear-wheel-drive car,” Zhou says.

Zhou adds that Motorsports wants to help prepare students for the electric vehicle industry. “A large majority of upperclassmen on the team have worked, or are working, at Tesla or Rivian.”

Former Motorsports powertrain lead Levi Gershon ’23, SM ’24 recently founded CRABI Robotics — a fully autonomous marine robotic system designed to conduct in-transit cleaning of marine vessels by removing biofouling, increasing vessels’ fuel efficiency.

An Indigenous approach to sustainable rockets

First Nations Launch, the all-Indigenous student rocket team, recently won the Grand Prize in the 2024 NASA First Nations Launch High-Power Rocket Competition. Using Indigenous methodologies, this team considers the environment in the materials and methods they employ.

“The environmental impact is always something that we consider when we’re making design decisions and operational decisions. We’ve thought about things like biodegradable composites and parachutes,” says rising junior Hailey Polson, team captain. “Aerospace has been a very wasteful industry in the past. There are huge leaps and bounds being made with forward progress in regard to reusable rockets, which is definitely lowering the environmental impact.”

Collecting climate change data with autonomous boats

Arcturus, the recent first-place winner in design at the 16th Annual RoboBoat Competition, is developing autonomous surface vehicles that can greatly aid in marine research. “The ocean is one of our greatest resources to combat climate change; thus, the accessibility of data will help scientists understand climate patterns and predict future trends. This can help people learn how to prepare for potential disasters and how to reduce each of our carbon footprints,” says Arcturus captain and rising junior Amy Shi.

“We are hoping to expand our outreach efforts to incorporate more sustainability-related programs. This can include more interactions with local students to introduce them to how engineering can make a positive impact in the climate space or other similar programs,” Shi says.

Shi emphasizes that hope is a crucial force in the battle against climate change. “There are great steps being taken every day to combat this seemingly impending doom we call the climate crisis. It’s important to not give up hope, because this hope is what’s driving the leaps and bounds of innovation happening in the climate community. The mainstream media mostly reports on the negatives, but the truth is there is a lot of positive climate news every day. Being more intentional about where you seek your climate news can really help subside this feeling of doom about our planet.”

© Photo: Adam Glanzman

Electric Vehicle Team members (from left to right) Anand John, Rachel Mohammed, and Aditya Mehrotra '22, SM '24 monitor their bike’s performance, battery levels, and hydrogen tank levels to estimate the vehicle’s range.

Study: EV charging stations boost spending at nearby businesses

Charging stations for electric vehicles are essential for cleaning up the transportation sector. A new study by MIT researchers suggests they’re good for business, too.

The study found that, in California, opening a charging station boosted annual spending at each nearby business by an average of about $1,500 in 2019 and about $400 between January 2021 and June 2023. The spending bump amounts to thousands of extra dollars annually for nearby businesses, with the increase particularly pronounced for businesses in underresourced areas.

The study’s authors hope the research paints a more holistic picture of the benefits of EV charging stations, beyond environmental factors.

“These increases are equal to a significant chunk of the cost of installing an EV charger, and I hope this study sheds light on these economic benefits,” says lead author Yunhan Zheng MCP ’21, SM ’21, PhD ’24, a postdoc at the Singapore-MIT Alliance for Research and Technology (SMART). “The findings could also diversify the income stream for charger providers and site hosts, and lead to more informed business models for EV charging stations.”

Zheng’s co-authors on the paper, which was published today in Nature Communications, are David Keith, a senior lecturer at the MIT Sloan School of Management; Jinhua Zhao, an MIT professor of cities and transportation; and alumni Shenhao Wang MCP ’17, SM ’17, PhD ’20 and Mi Diao MCP ’06, PhD ’10.

Understanding the EV effect

Increasing the number of electric vehicle charging stations is seen as a key prerequisite for the transition to a cleaner, electrified transportation sector. As such, the 2021 U.S. Infrastructure Investment and Jobs Act committed $7.5 billion to build a national network of public electric vehicle chargers across the U.S.

But a large amount of private investment will also be needed to make charging stations ubiquitous.

“The U.S. is investing a lot in EV chargers and really encouraging EV adoption, but many EV charging providers can’t make enough money at this stage, and getting to profitability is a major challenge,” Zheng says.

EV advocates have long argued that the presence of charging stations brings economic benefits to surrounding communities, but Zheng says previous studies on their impact relied on surveys or were small-scale. Her team of collaborators wanted to make advocates’ claims more empirical.

For their study, the researchers collected data from over 4,000 charging stations in California and 140,000 businesses, relying on anonymized credit and debit card transactions to measure changes in consumer spending. The researchers used data from 2019 through June of 2023, skipping the year 2020 to minimize the impact of the pandemic.

To judge whether charging stations caused customer spending increases, the researchers compared data from businesses within 500 meters of new charging stations before and after their installation. They also analyzed transactions from similar businesses in the same time frame that weren’t near charging stations.

Supercharging nearby businesses

The researchers found that installing a charging station boosted annual spending at nearby establishments by an average of 1.4 percent in 2019 and 0.8 percent from January 2021 to June 2023.

While that might sound like a small amount per business, it amounts to thousands of dollars in overall consumer spending increases. Specifically, those percentages translate to almost $23,000 in cumulative spending increases in 2019 and about $3,400 per year from 2021 through June 2023.

Zheng says the decline in spending increases over the two time periods might be due to a saturation of EV chargers, leading to lower utilization, as well as an overall decrease in spending per business after the Covid-19 pandemic and a reduced number of businesses served by each EV charging station in the second period. Despite this decline, the annual impact of a charging station on all its surrounding businesses would still cover approximately 11.2 percent of the average infrastructure and installation cost of a standard charging station.

Through both time frames, the spending increases were highest for businesses within about a football field’s distance from the new stations. They were also significant for businesses in disadvantaged and low-income areas, as designated by California and the Justice40 Initiative.

“The positive impacts of EV charging stations on businesses are not constrained solely to some high-income neighborhoods,” Wang says. “It highlights the importance for policymakers to develop EV charging stations in marginalized areas, because they not only foster a cleaner environment, but also serve as a catalyst for enhancing economic vitality.”

Zheng believes the findings hold a lesson for charging station developers seeking to improve the profitability of their projects.

“The joint gas station and convenience store business model could also be adopted to EV charging stations,” Zheng says. “Traditionally, many gas stations are affiliated with retail store chains, which enables owners to both sell fuel and attract customers to diversify their revenue stream. EV charging providers could consider a similar approach to internalize the positive impact of EV charging stations.”

Zheng also says the findings could support the creation of new funding models for charging stations, such as multiple businesses sharing the costs of construction so they can all benefit from the added spending.

Those changes could accelerate the creation of charging networks, but Zheng cautions that further research is needed to understand how much the study’s findings can be extrapolated to other areas. She encourages other researchers to study the economic effects of charging stations and hopes future research includes states beyond California and even other countries.

“A huge number of studies have focused on retail sales effects from traditional transportation infrastructure, such as rail and subway stations, bus stops, and street configurations,” Zhao says. “This research provides evidence for an important, emerging piece of transportation infrastructure and shows a consistently positive effect on local businesses, paving the way for future research in this area.”

The research was supported, in part, by the Singapore-MIT Alliance for Research and Technology (SMART) and the Singapore National Research Foundation. Diao was partially supported by the Natural Science Foundation of Shanghai and the Fundamental Research Funds for the Central Universities of China.

© Image: iStock

"The joint gas station and convenience store business model could also be adopted to EV charging stations," Yunhan Zheng says.
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