Comparing total cost of ownership of battery electric vehicles and internal combustion engine vehicles

Zhe Liu, Juhyun Song, Joseph Kubal, Naresh Susarla, Kevin W. Knehr, Ehsan Islam, Paul Nelson and Shabbir Ahmed

Energy Policy, 2021, vol. 158, issue C

Abstract: 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.

Keywords: Total cost of ownership; Battery electric vehicle; Electric powertrain; Cost parity; Favorability (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:158:y:2021:i:c:s0301421521004341

DOI: 10.1016/j.enpol.2021.112564

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