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.

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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.