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Research into THE IMPACT OF ELECTRIC VEHICLE SALES ON PM2.5 LEVELS AND ECONOMIC GROWTH IN FIVE MAJOR REGIONS OF CHINA: A LINEAR REGRESSION ANALYSIS

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Course
ECON 232

Institution
Harvard University

THE IMPACT OF ELECTRIC VEHICLE SALES ON PM2.5 LEVELS AND ECONOMIC GROWTH IN FIVE MAJOR REGIONS OF CHINA: A LINEAR REGRESSION ANALYSIS

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Uploaded on August 26, 2024
Number of pages 28
Written in 2024/2025
Type Case
Professor(s) Haile joseph
Grade A+

linear
regression
electric vehicle
regional differences
evs
particulate matter pm25 levels

Institution
Harvard University
Course
ECON 232

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1

THE IMPACT OF ELECTRIC VEHICLE SALES ON PM2.5 LEVELS AND ECONOMIC
GROWTH IN FIVE MAJOR REGIONS OF CHINA: A LINEAR REGRESSION ANALYSIS

1. Introduction

1.1． Background

Air pollution is a menace to the welfare of people and the economy within the contemporary
global environment since it is quickly being polluted. China has a quality of air that is bad there-
fore the PM2.5 levels which make it a severe issue. The major factors include Industrialization,
increasing vehicles, and Urbanization; People in the urban areas, for instance, spend more en-
ergy and emit more than those in the rural areas 60+ of the population now lives in the metropol-
itan areas compared to 18% in 1978 (Grubler et al., 2012).

In this regard, China has adopted and promoted EVs by such measures as incentives for pur-
chase, and low emission standards for IC vehicles. It is one of the largest markets for EVs and
has witnessed exponential growth in the demand for electric vehicles across the country
(Grubler et al., 2012). However, concerns or issues about the social roles and effects of the
emergent EVs market on development and emissions are still valid. As several works have indi-
cated, the use of EVs causes a decrease in PM2. While some acknowledge as many as five lay-
ers, others speak about the differences in the impact in connection with the territories and the
levels of implementation of electric cars. This circumstance may be due to the synergistic rela-
tionship between EV sales and PM2. Five levels are discernible while the relationship between
tourism, hotel, and economic development requires further research. The following can be con-
sidered possible economic advantages of adopting EVs on a large scale: employment opportuni-
ties, the emergence of new industries, and low cost of pollution; however, these benefits will only
be realized depending on certain factors such as availability of charge stations, and incentives
among other macroeconomic factors.

1.2. Aims and Objectives

Research Objectives

1. To quantify the impact of electric vehicle (EV) sales on fine particulate matter (PM2.5) levels
in five major regions of China.
2. To investigate the regional differences in the relationship between EV sales and PM2.5 lev-
els, considering factors such as government subsidies.
3. To assess the potential indirect effect of EV sales on economic growth through improve-
ments in air quality.

Research Questions

, 2

1. How do EV sales impact PM2.5 levels in different regions of China?
2. What regional differences exist in the relationship between EV sales and PM2.5 levels?
3. Is there an indirect effect of EV sales on economic growth through air quality improvement?

Research Structure
The research will be structured in the following way:

1. Literature Review: The analysis of the research body on the connection between China's
economic growth, PM2.5 levels, and sales of electric vehicles. This review, which will en-
compass a variety of scholarly works, official documents, and industrial studies, will lay a
strong basis for the research's later stages.
2. Data Collection and Analysis: The researcher will do a multiple regression and correla-
tion analysis to determine whether there are bits of regional variations in the connection
between GDPs per capita, PM2.5 levels, and the number of electric vehicle sales col-
lected in Five distinct regions of China for the study. Sources of this data will include cor-
porate news, research papers, and Government publications.
3. Policy Review and Evaluation: The research will use academic studies, policy papers,
and analysis of official documents to cover the motives and the main definite courses that
the Chinese government has established to further boost the usage of electric vehicles
and consequently lower pollution.
4. Synthesis and Recommendations: To better inform stakeholders and policymakers about
how to attain both environmental and economic benefits from the adoption of electric ve-
hicles in China, the researcher will wrap up by providing a summary of the findings from
the data analysis and policy review.

Research Gap
Though a large amount of literature has been written on the impacts of electric vehicle deploy-
ment on emission reduction, majority of works have only explored national-level solutions
(Zhang et al., 2024; Ma et al., 2021; Ji et al., 2015). Though a lot of research has been con-
ducted on the link between the two variables, the literature is scarce in terms of the regional
level analysis, which is crucial in studying the details of this association. However, it should be
mentioned that the number of electric vehicles used in China is not the same at each region due
to the economic development level, the extent of transport infrastructure, and the government
measures that were implemented in these zones. Second, the prior literature has mainly focused
on the benefits of environmental improvements through the adoption of electric automobiles
while paying minimal attention to economic implications (Liu et al., 2020; Hu et al., 2021). How-
ever, some past studies have suggested that the direct effects of electric vehicles on the eco-
nomic development of countries exist while the understanding of how electric vehicles influence
the economic development and the relationship between the environment and economy is lim-
ited. This research will therefore go a long way in filling this gap by assessing the level of sales
of electric vehicles and their relationship with PM2.5 levels and have a more profound impact on
the economic growth rate.

, 3

Consequently, a review of the literature is required to understand the involvement of government
policies and subsidies as a way of encouraging the use of electric vehicles to enhance air quality
in China. Although some papers attempt to compare the efficiency of particular policy measures
(Li et al., 2019; Li et al., 2023), there are no comprehensive guides for policy makers that would
summarize scientific findings and present best practices on how these policies and strategies
should be further improved to contribute to environmental and economic improvements. With re-
gards to the above-mentioned research gaps, this study will have the following implications: The
findings of the study will offer evidence-based information which will be useful in the formulation
of better policies aimed at encouraging the use of electric vehicles in China as well as improving
air quality. The results of the regional-level analysis, the analysis of the interconnections be-
tween the environment and economy, the review and evaluation of the policy will be useful to un-
derstand the nature of multifaceted processes at the grassroots level, as well as for the rational
decision making concerning the further development of electric mobility in China.

2. Literature Review

2.1 Urban Planning and Infrastructure Adaptation for EV Integration

The mass use of electric vehicles in China means that fundamental shifts must occur in how cities
are built and how infrastructure is created to support the use of such vehicles. Guo et al. (2022)
also presented a systematic review on the nature and preferences of electric shared mobility driv-
ers on location decisions for optimal parking of their vehicles, a topic of significant relevance to
urban designers and policy makers. The studies they used complex models to understand driver
behaviour and preferences, showed that drivers’ population density, proximity to commerce areas
and the existing transport infrastructure are essential in defining the most appropriate locations
for EV support structures. This research implies that the effective location of the related EV facil-
ities can help improve the feasibility and attractiveness of electric mobility solutions that can in
turn, spur the adoption of electric cars in urban areas.

The incorporation of EVs into the already developed urban fabric also arises with issues and pos-
sibilities for city planning in regards to land and public space. Li et al. (2022) studied the accessi-
bility equity of urban public services for EVs in China’s city and stressed that the distribution of
the EV infrastructure should consider the residents’ neighborhood and socioeconomic status. Ac-
cording to their study, they found that the location of EV facilities is more inclined towards the
wealthy neighborhoods which may contribute to inequality in the distribution of transportation
services. In response, the authors presented a more elaborate strategy for EV infrastructure de-

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