Mobile green billboards on the road? The impact of electric ride-hailing vehicles on electric vehicle promotion and air quality

Electric ride-hailing platforms, combining sharing economy and EV sustainability, hold potential as key future urban transport components, yet their impacts on urban vehicle structures and environment remain empirically unverified. Electric vehicles operating within these platforms enhance exposure to passengers, potentially having a demonstration effect that requires further validation. Based on monthly electric vehicle sales data and air quality data from China from 2019 to 2021, this study validates the impact of the electric ride-hailing platforms on electric vehicle sales and six air quality indicators. Empirical results demonstrate a strong demonstration effect in the operation of these platforms, significantly promoting the sales of battery electric vehicles and plug-in hybrid electric vehicles, increasing the market share of new electric vehicle sales. At the national level, concentrations of PM2.5, SO2, and CO saw significant improvements, and the effects on PM2.5 and SO2 can be explained through the demonstration effect of electric ride-hailing platforms. Finally, using Shenzhen's electrification case in public transportation sector, this study employs synthetic control to further reveal the potential positive impacts of electrification in ride-hailing service at the city level. This paper provides one of the pioneering empirical examinations of electric ride-hailing platforms' demonstration effect on electric vehicle diffusion and environmental outcomes. Based on these findings, this paper provides management insights for platform operations and government policy improvements, such as encouraging the electrification of ride-hailing services. • A strong demonstration effect is evident in the EV ride-hailing services. • Concentrations of PM2.5, SO2, and CO decrease in the context of EV ride-hailing. • Benefits of EV ride-hailing on air quality are mediated by the demonstration effect. • Shenzhen's EV transition in public transportation confirms the demonstration effect.