Proximity to electric vehicle charging stations positively impacts home values

 – A new study finds that proximity to electric vehicle charging stations (EVCSs) can raise property values depending on where homes are situated. The study, conducted by a team of researchers from the University of Rhode Island, the University of Maryland College Park, Princeton University and Cardiff University, was recently published in Nature Sustainability.

Relying on actual market prices of approximately 14 million housing transactions between 1993 and 2021 in the state of California, and combining that with EVCS data, researchers found the greatest effect on the value of homes located between 0.4 to 0.5 kilometers of EVCSs. Compared to those not in proximity to EVCSs, homes within 1 kilometer of EVCSs are valued approximately 3.3% higher (or $17,212). Homes located within 0.4 to 0.5 kilometers found the greatest impact, with a 5.8% increase in home value over homes not in proximity. Homes within 0.3 kilometers did not show a statistically significant impact to home value.  

“This research is really the first of its kind examining public attitudes toward this new type of energy infrastructure,” said Pengfei Liu, URI assistant professor of environmental and resource economics, and an author on the study. “Based on what we are seeing in terms of housing prices and what consumers are willing to pay as part of these transactions, we can infer that there is public support for EV charging stations. When you look at property values for those homes within similar proximity to a gas station – this is not the case.”

However, additional public charging stations are not without their drawbacks, says Lucy Qiu, associate professor in the School of Public Policy at the University of Maryland College Park, and one of the lead authors on the study. While this is still a relatively new area of research, the team conducted analyses of air quality and traffic flow. Results show the installation of charging stations increases annual traffic by 0.3% and peak month traffic by 0.5%.

“We also found reduced air pollution,” said Qiu, noting the analysis showed that air pollutant concentrations decreased by 1.3-2.2%. “This positive environmental impact could help explain why – despite increased traffic flows – we saw no statistically significant effect on the property values of homes within 0.3 kilometers of a charging station when we might otherwise have expected values to decline.”

With close to 20% of California residents living in multi-family housing, researchers recognize those residents may be more likely to pay a higher premium for public EVCSs vs. single-family homeowners with off-street parking. However, they add that public chargers may also be of benefit to single-family homeowners as an alternative when home chargers fail, when drivers need fast charging immediately or as a substitute due to faster charging capabilities.

Despite California being a leader in terms of electric vehicle sales, researchers believe the study results are an early indication of where the market will go.

“Our goal is to provide policymakers and potential investors with the information necessary to make an informed decision when it comes to this type of infrastructure,” said Qiu. “Traditionally, there has not been a strong incentive to invest in electric vehicle charging stations – but our research shows beyond providing positive benefits for the environment, there is also a positive impact on home values, providing a return for public and private investors.”

Given the growing popularity of electric vehicles, and the likelihood of more affordable models and a rising number of used vehicles coming on the market, charging infrastructure becomes increasingly important for low- and middle-income communities.

“We’ve learned a great deal that could be helpful in terms of the economic and policy implications of charging stations and where they are located,” Liu added. “Previously charging stations were built primarily where there was high demand while ignoring the economic side effects. Our research finds, on average, there is a positive economic effect – but the effect varies depending on exact location and demographics. Our hope is that the research provides some guidance and is instructive for policy makers when it comes to locating charging stations and maximizing external economic benefits.”

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JOURNAL

Nature Sustainability

DOI

10.1038/s41893-022-01058-5 

National Offshore Wind Research and Development Consortium Announces U.S. Offshore Wind Supply Chain Road Map

Today, the National Offshore Wind Research and Development Consortium (NOWRDC) released a report identifying how the United States can develop a robust and equitable domestic supply chain required to achieve the national offshore wind target of 30 gigawatts (GW) by 2030. 

This report describes how the United States could develop a fully domestic offshore wind energy supply chain. It discusses barriers that could prevent or delay supply chain expansion and offers potential solutions that could help overcome these challenges. The report highlights major considerations for developing resilient, sustainable, and equitable manufacturing capabilities. Finally, it estimates the number of required major component manufacturing facilities, ports, and vessels that would need to be developed by 2030 under a domestic supply chain scenario that supports an annual deployment of 4-6 GW per year. This scenario also guides discussion regarding the investment, development time, and workforce growth that could be required to develop a domestic offshore wind supply chain. 

This project is a partnership between the National Renewable Energy Laboratory (NREL), the Business Network for Offshore Wind, DNV, the Maryland Energy Administration (MEA), the New York State Energy Research and Development Authority (NYSERDA), and the U.S. Department of Energy (DOE).  

“The opportunity to create a resilient and equitable domestic supply chain is one of the most exciting aspects of our offshore wind goals,” said Matt Shields, Senior Offshore Wind Analyst at NREL. “This supply chain would increase our chances of meeting the 30 GW by 2030 target, create a huge number of jobs and economic benefits, and most importantly, position the sector for sustainable growth beyond 2030. This report identifies critical actions that we need to take as an industry to develop the supply chain quickly, but also strategically and equitably.”   

“Developing our nation’s vast offshore wind resources will provide reliable clean energy to coastal communities and help us reach our climate goals. It also presents a significant opportunity to create tens of thousands of good-paying jobs and expand domestic manufacturing across the country,” said Alejandro Moreno, Acting Assistant Secretary for Energy Efficiency and Renewable Energy at the U.S. Department of Energy. “With the help of the roadmap laid out in this report, we can catalyze progress to realize this immense potential.” 

“A manufacturing supply chain is already emerging in more than a dozen locations up and down the U.S. coast in support of the offshore wind industry, which will lead to thousands of well-paying jobs,” said Ross Gould, vice president for Supply Chain Development and Research at the Business Network for Offshore Wind. “To meet our ambitious clean energy national goals, American manufacturers must play a larger role to accelerate our transition. This road map lays out the challenges and collaborative actions needed to bring more domestic companies into the supply chain and the opportunity those businesses bring to building out the U.S. offshore wind industry.” 

"To fully realize the potential of offshore wind energy in the United States, it is important we understand the gaps and needs of the current offshore wind supply chain. By understanding the needs of the industry, we can target investments to local businesses and workforce which create economic opportunities while achieving our goals of cleaner, more reliable energy. MEA is proud to participate in a study that brings us closer to realizing the economic and environmental promise of offshore wind," said Maryland Energy Administration Director Paul Pinsky.  

NYSERDA President and CEO Doreen M. Harris said, “Offshore wind is a cornerstone of New York’s clean energy transition that will deliver nine gigawatts by 2035, and grow a high-tech industry that will attract billions in investments and thousands of family-sustaining jobs. This report is the result of significant private-public collaboration and lays out a pathway to cultivate a long-term domestic supply chain here in the U.S.” 

The full project summary will be released by NOWRDC in late winter of 2023. 

Read A Supply Chain Road Map for Offshore Wind Energy in the United States on NREL’s website.