# Power supply disruptions deter electric vehicle adoption in cities in China

## TL;DR

Power outages in China reduce the adoption of electric vehicles, which in turn lowers the benefits of carbon reduction.

## Contribution

This study provides empirical evidence on the negative impact of power outages on electric vehicle adoption in China.

## Key findings

- A 1 increase in monthly power outages leads to a 0.99% decrease in new electric vehicle adoptions.
- A doubling of annual power outages can reduce carbon reduction benefits by over $31.3 million yearly.
- Power outages negatively affect electric vehicle adoption for up to a decade.

## Abstract

Electrification plays a crucial role in deep decarbonization. However, electrification and power infrastructure can cause mutual challenges. We use nationwide power outage and electric vehicle adoption data in China to provide empirical evidence on how power infrastructure failures can deter electrification. We find that when the number of power outages per district increases by 1 in a given month, the number of new electric vehicles adopted per month decreases by 0.99%. A doubling of power outages in one year on average across the nation can create a depressed adoption rate for up to a decade, implying a decline of more than $ 31.3 million per year in carbon reduction benefits from electric vehicle adoptions. This paper adds to the policy discussion of the costs of increased power outages due to extreme weather and natural disasters, and the urgency for policy to address this issue to facilitate wide adoption of electrification.

Power outages have a statistically significant and negative impact on electric vehicle adoption. A doubling of power outages in one year in China can create a decline of more than $ 31.3 million per year in carbon reduction benefits.