Factors Contributing to the Growth of Electric Vehicle Sales

This paper investigates factors that contribute to the growth in electric vehicle sales using a regression analysis. I study the effects of five factors through five different regressions on the data set that includes information on electric vehicle (EV) sales, gas price, unemployment rate, passenger car sales, personal income, and miles traveled from January 2012 to December 2018. I also test the interactive effect between factors to see whether the magnitude of impact on electric vehicle sales of certain independent variable will change based on the value of another independent variable. The implication of my study is that gas price and personal income positively affect the EV sales. The unemployment rate and miles traveled are negatively correlated with EV sales. Moreover, the impact of gas price, income, and miles traveled change when the passenger car demand is different. Personal income level will also determine how sensitive people are to gas price when purchasing electric vehicles