A recent report from the Financial Times has stated that electric car battery charging points within the UK are set to triple in the next two years.
This prediction stems from the recent announcement from the UK’s main battery regulator, Ofgem, who has announced the approval of a new plan worth £300 million towards installing 1800 new points over the next two years.
The decision will triple the number of battery charging points within the UK to a total of 2700, thus improving the infrastructure for electric vehicles within the UK.
This decision will likely significantly increase the utility of electric vehicles for UK consumers as the increased amount of infrastructure will increase the availability of charging stations meaning charging stations will be much more easily accessible for consumers.
Additionally, the new charging stations are predicted to have a charging time of 20-40 minutes which is significantly lower than current charging stations which can have charging periods that are hours long.
This will also make electric vehicles much more viable for UK consumers as one of the main downsides, long charging times will be eliminated with the construction of these charging stations.
Furthermore, existing charging stations will also incentivise firms such as Tesla to set up in the UK as the risks associated with providing electric vehicles are reduced as the UK will already have the infrastructure necessary to make electric cars a viable alternative to petrol and diesel cars for consumers.
This will increase Foreign Direct Investment within the UK as more and more firms set up to produce electric vehicles, thus creating a new specialised industry that will employ highly skilled workers with high paying jobs.
This new influx of highly paid skilled work will possibly help rejuvenate economically deprived areas such as the Humber regions as the newly employed workers will spend their new earnings within local businesses, yielding in a multiplier effect and short term economic growth as aggregate demand rises.
Hence, once the infrastructure is set up and the new legislation concerning the purchasing of new petrol and diesel cars is introduced, electric vehicles will likely become the rational choice for consumers as they will be much more efficient compared to their outdated petrol and diesel counterparts.
Consequently, this will decrease emissions from transportation, the UK’s highest emitter of greenhouse gases accounting for 27% of total emissions, as more and more consumers switch to electric vehicles.
Therefore, as emissions decrease from transportation, the UK’s air quality will significantly increase which will have positive effects on the UK economy as currently, 36,000 die from poor air quality in the UK every year.
This means that an increase in air quality will reduce the number of respiratory issues which individuals gain from poor air quality, thus reducing pressure on public health services such as the NHS which is already struggling with 5 million waiting for treatment.
Thus, increasing the UK air quality will be a significant step in the right direction as decreased NHS pressure will enable the public health service to focus its resources towards treating individuals who are in A&E, or, towards chipping away at the 5 million waiting line.
This will have additional benefits for the UK economy as the increase in public health will yield an increase in relative productivity per worker as individuals who receive faster treatment take fewer days off work, thus increasing output per person.
Consequently, the decision to construct infrastructure for electric vehicles will not only yield a short term increase in economic growth due to the rising aggregate demand attributed to new employment, but it will also result in an increase in the UK’s productive capacity as the nation achieves long term economic growth due to rising output per person.
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Written by Hubert Kucharski