Empirical analysis of the depreciation of electric vehicles compared to gasoline vehicles

Lukas Schloter

Transport Policy, 2022, vol. 126, issue C, 268-279

Abstract: The depreciation pattern of passenger vehicles is an important input parameter for economic considerations of buyers and other stakeholders such as financial insti-tutions. Due to their technical specifications and uncertainties in their degradation and life expectancy, it seems plausible that electric vehicles depreciate differently to conventional vehicles. This paper contributes to existing research in the economics of electric vehicles by analyzing the depreciation of electric vehicles along several countries and segments and compares it to gasoline vehicles by empirical analysis of public available data of 24,000 used vehicle sales. The results show that vehicles have a degressive depreciation relationship over the age of the vehicle, but that elec-tric vehicles have a substantially higher depreciation of 1.16% per month (13.9% per annum) compared to gasoline vehicles with 0.87% per month (10.4% per annum). Consequently, research into the economics of vehicles and budgeting considerations should apply a different depreciation rate for electric vehicles than for conventional vehicles. The resulting difference in depreciation to gasoline vehicles imply adapta-tion in economic models of insurance and leasing companies and gives governments the opportunity to adapt subsidies for electric vehicles to become more efficient.

Keywords: Electric vehicles; Depreciation; Value loss; Vehicle depreciation (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0967070X22002074
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:126:y:2022:i:c:p:268-279

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tranpol.2022.07.021

Access Statistics for this article

Transport Policy is currently edited by Y. Hayashi

More articles in Transport Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().