The transport sector stands in the core of Latin-American economies but is also responsible for 19% of CO2 emissions in the continent. Battery electric trucks (BET) are a modern alternative to diesel ...trucks with the potential to mitigate the freight transport emissions of CO2. This study makes an economic analysis, in a total cost of ownership (TCO) basis, for different weight classes and applications in five Latin-American countries: Argentina, Brazil, Chile, Colombia and Uruguay. Based on data gathered by a state-of-the-art literature review, the aim of this paper is to calculate the break-even year for each segment's BET by means of a quantitative linear model. This model considers multiple parameters that vary between the different countries, such as purchase price, fuel and electricity costs, insurance and registration costs, maintenance costs, import tariffs and charging infrastructure costs. Results show that Chile and Uruguay are the first countries to achieve break-even while Argentina and Brazil the last. A lower mileage leads the transition together with light-duty trucks, whereas heavy-duty trucks fight to reach parity with diesel trucks. Initial investments on BETs are highlighted as the main barrier for their adoption since it is the main cause for the TCO gap between both alternatives, while the electricity and fuel cost differential is also identified as a relevant factor to achieve parity. Public policies such as tax exemptions and subsidies are analysed by studying their impacts in achieving an earlier break-even. Finally, this research provides insight into a currently deserted venue as it is the insertion of BETs in Latin America.
•TCO approach developed to economically compare diesel and electric trucks.•Certain Latin-American countries were selected to make the analysis.•Upfront costs are the main barrier for battery electric truck adoption.•TCO depends heavily on electricity and fuel price variation.•Chile and Uruguay are the first countries to break-even in most segments.
•Ownership costs are compared for Electric, Hybrid, petrol and diesel vehicles.•Total Cost of Ownership (TCO) is compared for UK, USA and Japan from 1997 to 2015.•Hybrids are relatively cheaper in ...2015 than the year of introduction.•Market share of hybrids is strongly correlated with their relative TCO.•At current low fuel prices in the UK, hybrids reach cost parity at 16,000 miles.
New powertrain technologies, such as Hybrid Electric Vehicles, have a price premium which can often be offset by lower running costs. Total Cost of Ownership combines these purchase and operating expenses to identify the most economical choice of vehicle. This is a valuable assessment for private and fleet purchasers alike. Studies to date have not compared Total Cost of Ownership across more than two vehicle markets or analysed historic costs. To address this gap, this research provides a more extensive Total Cost of Ownership assessment of conventional, Hybrid, Plug-in Hybrid and Battery Electric Vehicles in three industrialized countries – the UK, USA (using California and Texas as case studies) and Japan – for the time period 1997–2015. Finally, the link between Hybrid Electric Vehicle Total Cost of Ownership and market share is analysed with a panel regression model.
In all regions the incremental Total Cost of Ownership of hybrid and electric vehicles compared to conventional vehicles has reduced from the year of introduction and 2015. Year on year Hybrid Electric Vehicles Total Cost of Ownership was found to vary least in the UK due to the absence of subsidies. Market share was found to be strongly linked to Hybrid Electric Vehicle Total Cost of Ownership through a panel regression analysis. Financial subsidies have enabled Battery Electric Vehicles to reach cost parity in the UK, California and Texas, but this is not the case for Plug-in Hybrid Electric Vehicles which haven’t received as much financial backing. This research has implications for fleet purchasers and private owners who are considering switching to a low-emission vehicle. The findings are also of interest to policymakers that are keen to develop effective measures to stimulate decarbonisation of the fleet and improve air quality.
The large amount of CO2 emissions and of fossil fuel consumption caused by the transportation sector makes the sector central for attaining the EU energy and climate policy targets. Consequently, new ...propulsion systems are developed in the automotive industry, which currently have cost disadvantages compared to conventional internal combustion engines (ICE). The article provides a review on support measures for electric vehicles (EV), which have been currently implemented within the European Union. In a case study analysis for Austria, we analyze different policy instruments including a CO2 tax aiming to support the introduction of electric vehicles in Austria. We have calculated and compared total costs of ownership (TCO), which includes all costs associated with the ownership of an automobile including costs of purchasing, operating and maintaining, charges and taxes as well as costs of recycling and disposal. A survey on main specifications of electric vehicles has been conducted among the main automobile manufacturers and importers in Austria. Based on this survey, TCO have been calculated dynamically from 2011 to 2020 for a business as usual (BAU) scenario considering currently implemented taxes and subsidies for ICE and electric vehicle systems. Three alternative policy support measures have been assessed to promote EV until 2015. Results show that EV will be cost-competitive with ICE by the year 2012/2013 if projected production volumes and thus economies of scale are reached. Further, we conclude that an up-front price support seems to be favorable over taxation systems.
•Total cost-of-ownership oriented sizing of fuel cell heavy-duty trucks.•Optimal fuel cell energy management using dynamic programming.•Assessing economic viability of fuel cell trucks against ...battery electric trucks.•Fuel cell entails reduction in truck weight, battery pack capacity and retail price.•Right-sizing considering 2020-, 2030- and 2050-oriented cost scenarios.
Fuel cell electrified propulsion may currently represent a promising option for long-haul heavy-duty trucks. However, appropriately sizing fuel cell electrified propulsion systems to fully exploit the economic potential of this technology when applied to heavy-duty trucks still represents an open research question. To overcome this drawback, a methodology to size the fuel cell electrified propulsion system for a heavy-duty truck to minimize its total cost of ownership as function of different present- and future-oriented cost scenarios is presented in this paper. Retained cost contributions include both the retail price and the hydrogen and electricity lifetime costs as evaluated by implementing an optimal energy management approach in diversified driving missions. Fuel cell electrified truck powertrain sizing layouts are compared with battery electric powertrain option, and the latter is suggested as more appealing in the present cost scenario. Nevertheless, thanks to reductions forecasted in 10 years and 30 years both in terms of component costs, hydrogen cost and electricity cost, rightsizing the fuel cell electrified truck propulsion system according to the proposed methodology allows demonstrating its economic viability compared with a battery electric powertrain layout.
Electric buses (EBs) are a promising tool for achieving carbon neutrality in public transportation, and one of the most popular types of EBs nowadays are battery electric buses (BEBs). The ...advancement of charging technology reduces the limitation of charging duration, but it presents some economic challenges. In this study, we analyze the economics of BEBs with different charging rates from real data in Shanghai. We develop a total cost of ownership (TCO) framework considering subsidies, the time-of-use price, and the battery replacement. Our results indicate that fast-charging BEBs are more expensive than slow-charging BEBs due to higher charging equipment costs and the impact of fast charging on battery lifespan. Additionally, a sensitivity analysis reveals that operational subsidies are the primary factor influencing the TCO, particularly for slow-charging BEBs. Our research also provides a segmentation of BEB length types across various districts to assist operators in making economically decisions.
The ability to charge battery electric vehicles (BEVs) on a time scale that is on par with the time to fuel an internal combustion engine vehicle (ICEV) would remove a significant barrier to the ...adoption of BEVs. However, for viability, fast charging at this time scale needs to also occur at a price that is acceptable to consumers. Therefore, the cost drivers for both BEV owners and charging station providers are analyzed. In addition, key infrastructure considerations are examined, including grid stability and delivery of power, the design of fast charging stations and the design and use of electric vehicle service equipment. Each of these aspects have technical barriers that need to be addressed, and are directly linked to economic impacts to use and implementation. This discussion focuses on both the economic and infrastructure issues which exist and need to be addressed for the effective implementation of fast charging at 400 kW and above. In so doing, it has been found that there is a distinct need to effectively manage the intermittent, high power demand of fast charging, strategically plan infrastructure corridors, and to further understand the cost of operation of charging infrastructure and BEVs.
•Management of intermittent, high power demand is crucial.•Planning is needed for XFC including siting future corridors.•Planning needs to include cost of charging equipment, operation and installation.•Increased coordination needs to occur between governing authorities.•Safety, cyber physical security, interoperability and compatibility will impact use.
•GPS-logging of both cars simultaneously in commuting two-car households.•Modeling of the potential driving of a EV substituting one of the vehicles.•Flexibility gives more EV driving, less ...unfulfilled driving, and a small battery.•The flexibility present value is on average $6700 in Swedish two-car households.•Importance of multi-car households for BEV adoption beyond early adopters.
The major barriers to a more widespread introduction of battery electric vehicles (BEVs) beyond early adopters are the limited range, charging limitations, and costly batteries. An important question is therefore where these effects can be most effectively mitigated. An optimization model is developed to estimate the potential for BEVs to replace one of the conventional cars in two-car households and to viably contribute to the households’ driving demand. It uses data from 1 to 3months of simultaneous GPS logging of the movement patterns for both cars in 64 commuting Swedish two-car households in the Gothenburg region.
The results show that, for home charging only, a flexible vehicle use strategy can considerably increase BEV driving and nearly eliminate the unfulfilled driving in the household due to the range and charging limitations with a small battery. The present value of this flexibility is estimated to be on average $6000–$7000 but varies considerably between households. With possible near-future prices for BEVs based on mass production cost estimates, this flexibility makes the total cost of ownership (TCO) for a BEV advantageous in almost all the investigated households compared to a conventional vehicle or a hybrid electric vehicle. Because of the ubiquity of multi-car households in developed economies, these families could be ideal candidates for the initial efforts to enhance BEV adoptions beyond the early adopters. The results of this research can inform the design and marketing of cheaper BEVs with small but enough range and contribute to increased knowledge and awareness of the suitability of BEVs in such households.
The technological advance of electrochemical energy storage and the electric powertrain has led to rapid growth in the deployment of electric vehicles. The high cost and the added weight of the ...batteries have limited the size (energy storage capacity) and, therefore, the driving range of these vehicles. However, consumers are steadily purchasing these vehicles because of the fast acceleration, quiet ride, and high energy efficiency. The higher pack-to-wheel efficiency and the lower energy cost per mile, as well as the lower expense for maintenance and repair, translate to operating savings over conventional vehicles. This paper compares battery electric vehicles with internal combustion engine vehicles based on the total cost of ownership. It is seen that the higher initial cost of electric vehicles can be recovered in as little as 5 years. This is especially true for electric vehicles with shorter driving ranges. Specifically, a vehicle with an electric driving range under 200 miles may achieve cost parity with an equivalent internal combustion engine vehicle in 8 years or less.
•BEV prices are calculated using public data and BatPaC-predicted battery cost.•A BEV200 can break even with an equivalent ICEV in 6 years.•A BEV favorability index is defined to combine consumer and environmental factors.•Long-range BEV will be more favorable with economic incentives and policy supports.
Electromobility is a growing technology for land transport, constituting an important element of the concept of sustainable economic development. The article presents selected research results ...concerning one of the segments of this market-vehicles powered by hydrogen fuel cells. The subject of the research was to gain extensive knowledge on the economic factors influencing the future purchasing decisions of the demand side in relation to this category of vehicles. The research was based on a numerical experiment. For this purpose, a comparative analysis of purchase prices in relation to the TCO of the vehicle after 3–5 years of use was performed. The research included selected models that are powered by both conventional and alternative fuels. The use of this method will allow to assess the real costs associated with the hydrogen vehicle. The authors emphasize the important role of economic factors in the form of the TCO index for the development of this market. The experimental approach may be helpful in understanding the essence of economic relations that affect the development of the electro-mobility market and the market demand for hydrogen fuel cell-powered vehicles in Poland.
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•A simulator for battery electric vehicle electricity consumption is presented.•This study presents Well-to-Wheel analysis to estimate CO2eq emissions.•An innovative system of ...financial subsidies is designed.•Simulations show that battery electric vehicle is the favorable option for mobility.•Countries with a greener electricity mix can generate gains for customers.
Decarbonization in the transport sector, especially in private mobility, is one of the main objectives of the European Union (EU) for next few years. Battery electric vehicles (BEVs) represent a promising solution for reducing pollution and GHG emissions; however, their purchase price contributes to curbing their diffusion. In this scenario, the aims of this study are to develop a flexible, simulation-based analysis for EU car fleets in terms of energy consumption and GHG emissions and, based on the simulation results, to propose an innovative system of financial subsidies. This can support governments in encouraging EU customers to prefer sustainable and green options for mobility. Different car segments have been considered; the electrical energy consumptions have been obtained through the development of an ad-hoc simulation model in Simulink®-MathWorks environment, while the Well-To-Wheel analysis has been performed to estimate GHG emissions. Based on these assumptions, four different subsidy strategies have been proposed and designed for countries of the EU-27. According to different logics, economic subsidies have been linked to GHG emissions avoided thanks to the use of BEVs. The results obtained show how BEVs’ consumption of electricity is low, even for larger vehicles, and this allows BEVs to be considered less impactful than internal combustion engine vehicles (ICEV) with respect to GHG emissions. Furthermore, results are highly variable, depending on the electricity mix of each considered country, and they show how, for the countries that use the most renewable sources, the proposed subsidies even can generate gains from consumers’ perspectives.
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